Mehabe score: 2 G Factor: 2 Piotski Score: 6 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 6.
Description
Global Vectra Helicorp is the largest private Helicopter Company in India, providing seamless, safe and accident free helicopter services for almost two decades.Site:GLOBALVECT
Market Cap:
Rs 75.2 cr
Price:
53.7
Trading pe:
x
Book-value:
41.7/share
Div yield:
0.00 %
Earning yield:
-6.07%
Face-value:
10.0/share
52week high:
65.50
52week low:
36.20
Technical Analysis
Stock trades at 53.7, above its 50dma 47.52. It also trades above its 200dma 48.09. The stock remains bullish on techicals
The 52 week high is at 65.50 and the 52week low is at 36.20
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 5.66% over past five years.
– has a low return on equity of 0.56% for last 3 years.
-Contingent liabilities of Rs.28.19 Cr.
-Earnings include an other income of Rs.36.66 Cr.
Competition
– The industry trades at a mean P/E of 3.5x. Interglobe Aviat trades at the industry’s max P/E of 6.65x. GLOBALVECT trades at a P/E of x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 8.0. GLOBALVECT has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 10.6%. The max 1- month return was given by MFL India: a return of 27.78 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 84.99 cr compared to Rs 101.48 cr for period ended Mar 2020, a fall of 16.2%
Operating Profits reported at Rs 2.13 cr for period ended Mar 2021 vis-vis 2.33 for period ended Mar 2020 .
Operating Margins expanded 21.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -5.49 compared to Rs -0.59 for previous quarter ended Dec 2020 and Rs -2.39 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 295.0 cr for period ended Mar 2021 vis-vis sales of Rs 457.0 cr for the period ended Mar 2020, a fall of 54.9%. The 3 year sales cagr stood at -10.0%.
Operating margins shrank to 8.0% for period ended Mar 2021 vis-vis 20.0% for period ended Mar 2020, contraction of 1200.0 bps.
Net Profit reported at Rs -29.0 cr for period ended Mar 2021 vis-vis sales of Rs 2.0 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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 3.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 10% on a 1 Year basis vis-vis a return of -17% over the last 3 Years. – The compounded sales growth on a TTM bassis is -34% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is -327% vis-vis a compounded profit growth of -51% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.0% vis-vis 25.0% for Dec 2020
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 5.66% over past five years.
– has a low return on equity of 0.56% for last 3 years.
-Contingent liabilities of Rs.28.19 Cr.
-Earnings include an other income of Rs.36.66 Cr.
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 47.52 and is trading at 53.7 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
