Mehabe score: 2 G Factor: 2 Piotski Score: 7 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 2 and Piotski score of 7.
Description
Quadrant Televentures is engaged in the business of providing complete telecommunication services, which includes voice telephony, internet services, broadband data services and a wide range of value added services viz. Centrex, Leased Lines, VPNs, Voicemail, etc.Site:511116
Market Cap:
Rs 21.4 cr
Price:
0.35
Trading pe:
x
Book-value:
-31.6/share
Div yield:
0.00 %
Earning yield:
-0.11%
Face-value:
1.00/share
52week high:
0.35
52week low:
0.19
Technical Analysis
Stock trades at 0.35, above its 50dma 0.27. It also trades above its 200dma 0.24. The stock remains bullish on techicals
The 52 week high is at 0.35 and the 52week low is at 0.19
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -2.57% over past five years.
-Contingent liabilities of Rs.546.77 Cr.
-Promoters have pledged 62.76% of their holding.
-Earnings include an other income of Rs.81.20 Cr.
-Debtor days have increased from 37.39 to 46.77 days.
Competition
– The industry trades at a mean P/E of 29.8x. Bharti Airtel trades at the industry’s max P/E of 47.57x. 511116 trades at a P/E of x
– Industry’s mean G-Factor is 2.0 while the mean Piotski score is 8.0. 511116 has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 16.2%. The max 1- month return was given by Tata Tele. Mah.: a return of 63.53 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 115.0 cr compared to Rs 108.0 cr for period ended Mar 2020, a rise of 6.5%
Operating Profits reported at Rs 3.0 cr for period ended Mar 2021 vis-vis 16.0 for period ended Mar 2020 .
Operating Margins contracted -1220.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -3.29 compared to Rs -0.48 for previous quarter ended Dec 2020 and Rs 0.96 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 429.0 cr for period ended Mar 2021 vis-vis sales of Rs 457.0 cr for the period ended Mar 2020, a fall of 6.5%. The 3 year sales cagr stood at 7.6%.
Net Profit reported at Rs -296.0 cr for period ended Mar 2021 vis-vis sales of Rs -47.0 cr for the period ended Mar 2020, falling 0%.
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 59% on a 1 Year basis vis-vis a return of -18% over the last 3 Years. – The compounded sales growth on a TTM bassis is -6% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is 12% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.02% vis-vis 0.02% for Dec 2020 – Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 37.09% vis-vis 31.04% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -2.57% over past five years.
-Contingent liabilities of Rs.546.77 Cr.
-Promoters have pledged 62.76% of their holding.
-Earnings include an other income of Rs.81.20 Cr.
-Debtor days have increased from 37.39 to 46.77 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 0.27 and is trading at 0.35 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
