Mehabe score: 3 G Factor: 3 Piotski Score: 5 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 3 and Piotski score of 5.
Description
Balaji Telefilms is engaged in a leader in television content in India particularly for Hindi language content and has also successfully ventured in the regional television content market and event business. The company is also in the business of production of films.(Source : 201903 Annual Report Page No: 115)Site:BALAJITELE
Market Cap:
Rs 683 cr
Price:
67.6
Trading pe:
x
Book-value:
63.9/share
Div yield:
0.59 %
Earning yield:
-16.50%
Face-value:
2.00/share
52week high:
101.80
52week low:
50.25
Technical Analysis
Stock trades at 67.6, above its 50dma 63.66. It also trades above its 200dma 63.48. The stock remains bullish on techicals
The 52 week high is at 101.80 and the 52week low is at 50.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 1.06 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 10.61% over past five years.
-Promoter holding is low: 34.34%
– has a low return on equity of -8.78% for last 3 years.
-Debtor days have increased from 93.11 to 112.44 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 23.8x. Saregama India trades at the industry’s max P/E of 41.87x. BALAJITELE trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. BALAJITELE has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 11.9%. The max 1- month return was given by Balaji Telefilms: a return of 20.95 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 75.0 cr compared to Rs 108.0 cr for period ended Mar 2020, a fall of 30.6%
Company reported negative operating profit of Rs -41.0 cr for period ended Mar 2021. For same period last year, operating profit was -1.0
The EPS for Mar 2021 was Rs -3.94 compared to Rs -3.13 for previous quarter ended Dec 2020 and Rs -1.97 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 294.0 cr for period ended Mar 2021 vis-vis sales of Rs 574.0 cr for the period ended Mar 2020, a fall of 95.2%. The 3 year sales cagr stood at -10.7%.
Operating margins shrank to -35.0% for period ended Mar 2021 vis-vis 2.0% for period ended Mar 2020, contraction of 3700.0 bps.
Net Profit reported at Rs -119.0 cr for period ended Mar 2021 vis-vis sales of Rs -59.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -134.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of -11% 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 -41% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is -48% vis-vis a compounded profit growth of -27% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 18.46% vis-vis 18.46% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 46.8% vis-vis 46.8% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 1.06 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of 10.61% over past five years.
-Promoter holding is low: 34.34%
– has a low return on equity of -8.78% for last 3 years.
-Debtor days have increased from 93.11 to 112.44 days.
-‘s cost of borrowing seems high
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 63.66 and is trading at 67.6 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
