Mehabe score: 3 G Factor: 0 Piotski Score: 3 The stock has a rating OBSERVE & 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 0 and Piotski score of 3.
Description
ZODIAC-JRD-MKJ is an importer, exporter and manufacturer of cut and polished diamonds, and studded gold jewelry. The Company offers silver jewelry, rough diamonds, precious stones and semi-precious stones. Site:ZODJRDMKJ Main Symbol:ZODJRDMKJ
Stock trades at 37.6, above its 50dma 31.73. It also trades above its 200dma 30.15. The stock remains bullish on techicals
The 52 week high is at 42.50 and the 52week low is at 22.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.29 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -11.63% over past five years.
– has a low return on equity of -0.20% for last 3 years.
– has high debtors of 455.93 days.
Competition
– The industry trades at a mean P/E of 36.6x. Titan Company trades at the industry’s max P/E of 119.86x. ZODJRDMKJ trades at a P/E of 77.8x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 7.0. ZODJRDMKJ has a G-Factor of 0 and Piotski scoreof 3.
– Average 1 month return for industry is -1.5%. The max 1- month return was given by Rajesh Exports: a return of 14.26 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 0.62 cr compared to Rs 2.99 cr for period ended Dec 2020, a fall of 79.3%
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Company reported negative operating profit of Rs -0.01 cr for period ended Dec 2021. For same period last year, operating profit was 0.29.
The EPS for quarter ended Dec 2021 is Rs 0.12 compared to Rs 0.17 for previous quarter ended Sep 2021 and Rs 0.25 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 10.88 cr for period ended TTM vis-vis sales of Rs 8.67 cr for the period ended Mar 2021, a healthy growth of 20.3%. The 3 year sales cagr stood at -9.8%.
Operating margins shrank to -2.67% for period ended TTM vis-vis -0.46% for period ended Mar 2021, contraction of 221.0 bps.
Net Profit reported at Rs 0.18 cr for period ended TTM vis-vis sales of Rs 0.34 cr for the period ended Mar 2021, falling 88.9%.
Company reported a poor Net Profit CAGR of -50.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 34% on a 1 Year basis vis-vis a return of 1% over the last 3 Years. – The compounded sales growth on a TTM bassis is 77% vis-vis a compounded sales growth of -24% over the last 3 Years. – The compounded profit growth on a TTM basis is -43% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 54.19% vis-vis 54.19% for Sep 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.29 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -11.63% over past five years.
– has a low return on equity of -0.20% for last 3 years.
– has high debtors of 455.93 days.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 31.73 and is trading at 37.6 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
