Mehabe score: 4 G Factor: 5 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 6.
Description
Windsor Machines is engaged in business of manufacturing of plastic processing machinery, which includes pipe extrusion, blown film extrusion and injection moulding machines.Site:WINDMACHIN
Market Cap:
Rs 249 cr
Price:
38.2
Trading pe:
x
Book-value:
41.4/share
Div yield:
0.00 %
Earning yield:
-0.67%
Face-value:
2.00/share
52week high:
45.00
52week low:
11.40
Technical Analysis
Stock trades at 38.2, above its 50dma 34.84. It also trades above its 200dma 26.07. The stock remains bullish on techicals
The 52 week high is at 45.00 and the 52week low is at 11.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.92 times its book value
-Debtor days have improved from 34.84 to 24.64 days.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.79% over past five years.
– has a low return on equity of 2.81% for last 3 years.
-Promoters have pledged 51.26% of their holding.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 19.5x. GMM Pfaudler trades at the industry’s max P/E of 93.32x. WINDMACHIN trades at a P/E of x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 8.0. WINDMACHIN has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 7.4%. The max 1- month return was given by ISGEC Heavy: a return of 35.64 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 123.0 cr compared to Rs 62.0 cr for period ended Mar 2020, a rise of 98.4%
Company reported operating profit of Rs 16.0 cr for period ended Mar 2021, operating profit margin at 13.0 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 2.01 compared to Rs 0.92 for previous quarter ended Dec 2020 and Rs -3.83 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 314.0 cr for period ended TTM vis-vis sales of Rs 283.0 cr for the period ended Mar 2020, a growth of 9.9%. The 3 year sales cagr stood at -7.2%.
Operating margins expanded to 9.0% for period ended TTM vis-vis 2.0% for period ended Mar 2020, expansion of 700.0 bps.
Net Profit reported at Rs 11.0 cr for period ended TTM vis-vis sales of Rs -7.0 cr for the period ended Mar 2020, rising 163.6%.
Company reported a poor Net Profit CAGR of -2.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 5.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 151% on a 1 Year basis vis-vis a return of -29% over the last 3 Years. – The compounded sales growth on a TTM bassis is -25% vis-vis a compounded sales growth of -7% over the last 3 Years. – The compounded profit growth on a TTM basis is -124% vis-vis a compounded profit growth of 14% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 41.45% vis-vis 41.45% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.92 times its book value
-Debtor days have improved from 34.84 to 24.64 days. – has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.79% over past five years.
– has a low return on equity of 2.81% for last 3 years.
-Promoters have pledged 51.26% of their holding.
-‘s cost of borrowing seems high
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 34.84 and is trading at 38.2, thus bullish price action wise.
