Mehabe score: 6 G Factor: 5 Piotski Score: 5 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 5.
Description
CG-VAK Software and Exports Limited primarily engages in the development of computer software. The company offers outsourced software product development services, including product life cycle, product maintenance, product migration, product testing, and technical writing/documentation.Site:531489
Market Cap:
Rs 69.3 cr
Price:
137.0
Trading pe:
10.7x
Book-value:
56.9/share
Div yield:
0.55 %
Earning yield:
17.70%
Face-value:
10.0/share
52week high:
151.00
52week low:
37.90
Technical Analysis
Stock trades at 137.0, above its 50dma 107.03. It also trades above its 200dma 85.53. The stock remains bullish on techicals
The 52 week high is at 151.00 and the 52week low is at 37.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has delivered good profit growth of 19.59% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 0.28% over past five years.
Competition
– The industry trades at a mean P/E of 33.6x. Happiest Minds trades at the industry’s max P/E of 85.22x. 531489 trades at a P/E of 10.7x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 9.0. 531489 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 13.1%. The max 1- month return was given by CG-VAK Software: a return of 50.6 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 11.06 cr compared to Rs 10.7 cr for period ended Mar 2020, a rise of 3.4%
Operating Profits reported at Rs 2.17 cr for period ended Mar 2021 vis-vis 2.36 for period ended Mar 2020 .
Operating Margins contracted -243.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.49 compared to Rs 3.47 for previous quarter ended Dec 2020 and Rs 2.53 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 44.21 cr for period ended Mar 2021 vis-vis sales of Rs 39.26 cr for the period ended Mar 2020, a healthy growth of 11.2%. The 3 year sales cagr stood at 13.7%.
Operating margins expanded to 22.03% for period ended Mar 2021 vis-vis 15.41% for period ended Mar 2020, expansion of 662.0 bps.
Net Profit reported at Rs 6.96 cr for period ended Mar 2021 vis-vis sales of Rs 3.84 cr for the period ended Mar 2020, rising 44.8%.
Company recorded a healthy Net Profit CAGR of 71.1% 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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 16.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 262% on a 1 Year basis vis-vis a return of 65% over the last 3 Years. – The compounded sales growth on a TTM bassis is 18% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 125% vis-vis a compounded profit growth of 71% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 47.53% vis-vis 47.93% for Dec 2020
Conclusion
– is almost debt free.
– has delivered good profit growth of 19.59% CAGR over last 5 years – The company has delivered a poor sales growth of 0.28% over past five years.
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 107.03 and is trading at 137.0, thus bullish price action wise.
