Mehabe score: 1 G Factor: 3 Piotski Score: 8 The stock has a rating SELL. 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 8.
Description
Saven Technologies Limited is engaged in the software development and services.Site:532404
Market Cap:
Rs 32.5 cr
Price:
29.8
Trading pe:
16.1x
Book-value:
13.8/share
Div yield:
3.35 %
Earning yield:
10.58%
Face-value:
1.00/share
52week high:
53.45
52week low:
13.00
Technical Analysis
Stock trades at 29.8, below its 50dma 29.9 and below its 200dma 30.09. The stock remains bearish on technicals
The 52 week high is at 53.45 and the 52week low is at 13.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is providing a good dividend yield of 3.35%.
– has been maintaining a healthy dividend payout of 28.86%
Weakness
– The company has delivered a poor sales growth of 7.95% over past five years.
– has a low return on equity of 13.71% for last 3 years.
Competition
– The industry trades at a mean P/E of 32.1x. Happiest Minds trades at the industry’s max P/E of 83.47x. 532404 trades at a P/E of 16.1x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 9.0. 532404 has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is 8.7%. The max 1- month return was given by Coforge: a return of 21.88 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2.03 cr compared to Rs 2.86 cr for period ended Mar 2020, a fall of 29.0%
Operating Profits reported at Rs 0.39 cr for period ended Mar 2021 vis-vis 0.68 for period ended Mar 2020 .
Operating Margins contracted -456.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.59 compared to Rs 0.45 for previous quarter ended Dec 2020 and Rs 0.54 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 7.83 cr for period ended Mar 2021 vis-vis sales of Rs 11.51 cr for the period ended Mar 2020, a fall of 47.0%. The 3 year sales cagr stood at -2.3%.
Operating margins shrank to 24.65% for period ended Mar 2021 vis-vis 27.11% for period ended Mar 2020, contraction of 246.0 bps.
Net Profit reported at Rs 2.06 cr for period ended Mar 2021 vis-vis sales of Rs 2.59 cr for the period ended Mar 2020, falling 25.7%.
Company recorded a healthy Net Profit CAGR of 10.2% 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 19.0% compared to 14.0% over the last 3 Years. – The stock has given a return of 90% on a 1 Year basis vis-vis a return of 7% over the last 3 Years. – The compounded sales growth on a TTM bassis is -24% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is -23% vis-vis a compounded profit growth of 14% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 57.53% vis-vis 57.53% for Dec 2020
Conclusion
– is almost debt free.
-Stock is providing a good dividend yield of 3.35%.
– has been maintaining a healthy dividend payout of 28.86% – The company has delivered a poor sales growth of 7.95% over past five years.
– has a low return on equity of 13.71% for last 3 years.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 29.9 and is trading at 29.8. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
