MoneyWorks4Me

Check Before You Invest : Meghna Infracon Infrastructure Ltd

BSE: 538668 NSE: MIIL ISIN: INE898Q01015
  |   Sector:  BFSI   |   Industry:  Finance - Stock Broking

Snapshot

Q.1 Which industry/sub-sector does Meghna Infracon Infrastructure Ltd belong to?
Meghna Infracon Infrastructure Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.
Q.2 Is Meghna Infracon Infrastructure Ltd a good quality company?
Meghna Infracon Infrastructure Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Meghna Infracon Infrastructure Ltd undervalued or overvalued?
Meghna Infracon Infrastructure Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 0-year
Historic Median
Price to Earnings 340.72 46.63
Price to Book 56.22 0.41
Price to Sales 34.96 2.95
EV to EBITDA 169.63 62.93
Q.4 Is Meghna Infracon Infrastructure Ltd a good buy now?
Meghna Infracon Infrastructure Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

C: How much debt does the business have and is it at a sustainable level?

Q.1 Debt to Equity ratio of Meghna Infracon Infrastructure Ltd?
Meghna Infracon Infrastructure Ltd Debt-to-Equity ratio is 0.15, which is above the industry average of , indicating higher debt levels in the industry.

Q.2 Debt to cash flow from operations of Meghna Infracon Infrastructure Ltd?
Meghna Infracon Infrastructure Ltd Debt to cash flow from operations is 0.18, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Meghna Infracon Infrastructure Ltd?

Q.1 Promoter shareholding and pledge status of Meghna Infracon Infrastructure Ltd?
Promoters hold 47.01% of the Meghna Infracon Infrastructure Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Meghna Infracon Infrastructure Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Meghna Infracon Infrastructure Ltd vs industry peers?
Meghna Infracon Infrastructure Ltd revenue CAGR is %, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) 266.7 14.5
Operating Profit Growth (%) 1,000 14.6
Net Profit Growth (%) 233.3 20.1
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) 1.42 0.76
ROE (%) - 8.15
ROCE (%) - 12.14
Cash Conversion Cycle (days) 139.15 51

Valuation & price assessment

Q.1 Stock return of Meghna Infracon Infrastructure Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 65% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
65% 164.4% 96.5% 32.8%
Q.2 Valuation ratios of Meghna Infracon Infrastructure Ltd vs historical?
The current P/E ratio of 340.72 is higher than its historical median of 46.63, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings 340.72 46.63 -
Price to Book 56.22 0.41 -
Price to Sales 34.96 2.95 -
EV to EBITDA 169.63 62.93 -

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