Mehabe score: 5 G Factor: 5 Piotski Score: 7 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 7.
Description
MPS is engaged in the Business of Content Solutions ,Platform Solutions ,eLearning Solutions and Data processing, hosting and Computer Programming, consultancy and related activities.Site:MPSLTD
Market Cap:
Rs 1,010 cr
Price:
559.0
Trading pe:
17.5x
Book-value:
211/share
Div yield:
0.00 %
Earning yield:
10.28%
Face-value:
10.0/share
52week high:
680.00
52week low:
235.10
Technical Analysis
Stock trades at 559.0, below its 50dma 569.26. However it is trading above its 200dma 472.91. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 569.26.
The 52 week high is at 680.00 and the 52week low is at 235.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
Weakness
–
Competition
– The industry trades at a mean P/E of 22.0x. Navneet Educat. trades at the industry’s max P/E of 37.03x. MPSLTD trades at a P/E of 17.5x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 7.0. MPSLTD has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 19.5%. The max 1- month return was given by Sundaram Multi.: a return of 60.87 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 114.0 cr compared to Rs 76.0 cr for period ended Mar 2020, a rise of 50.0%
Operating Profits reported at Rs 29.0 cr for period ended Mar 2021 vis-vis 13.0 for period ended Mar 2020 .
Operating Margins expanded 833.3 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 7.14 compared to Rs 9.92 for previous quarter ended Dec 2020 and Rs 5.07 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 423.0 cr for period ended Mar 2021 vis-vis sales of Rs 332.0 cr for the period ended Mar 2020, a healthy growth of 21.5%. The 3 year sales cagr stood at 16.6%.
Operating margins expanded to 25.0% for period ended Mar 2021 vis-vis 24.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 59.0 cr for period ended Mar 2021 vis-vis sales of Rs 60.0 cr for the period ended Mar 2020, falling 1.7%.
Company reported a poor Net Profit CAGR of -5.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 99.0 cr for period ended Mar 2021 vis-vis Rs 53.0 cr for period ended Mar 2020
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 15.0% compared to 14.0% over the last 3 Years. – The stock has given a return of 123% on a 1 Year basis vis-vis a return of -2% over the last 3 Years. – The compounded sales growth on a TTM bassis is 27% vis-vis a compounded sales growth of 17% over the last 3 Years. – The compounded profit growth on a TTM basis is 9% vis-vis a compounded profit growth of -2% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 5.22% vis-vis 5.29% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 23.74% vis-vis 23.3% for Dec 2020
Conclusion
– is almost debt free.
– is expected to give good quarter –
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 below its 50 DMA 569.26 and is trading at 559.0. Shows a near term lack of buying interest.
