Mehabe score: 4 G Factor: 3 Piotski Score: 2 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 2.
Description
Futuristic Solutions is engaged in the Business of provided recovery of disputed debts and granting of personal/business loans.Site:534063
Market Cap:
Rs 25.1 cr
Price:
24.0
Trading pe:
x
Book-value:
12.8/share
Div yield:
0.00 %
Earning yield:
-0.48%
Face-value:
10.0/share
52week high:
32.00
52week low:
14.75
Technical Analysis
Stock trades at 24.0, above its 50dma 23.04. However it is trading below its 200dma 29.74. The stock remains weak though short term bullish momentum supports price action. It needs to close above 29.74 for bullish price action to continue
The 52 week high is at 32.00 and the 52week low is at 14.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -37.49% over past five years.
– has a low return on equity of -2.85% for last 3 years.
– has high debtors of 638.75 days.
Competition
– The industry trades at a mean P/E of 22.8x. SBI Cards trades at the industry’s max P/E of 91.81x. 534063 trades at a P/E of x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 7.0. 534063 has a G-Factor of 3 and Piotski scoreof 2.
– Average 1 month return for industry is 3.5%. The max 1- month return was given by Muthoot Finance: a return of 17.67 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.13 cr compared to Rs 0.14 cr for period ended Mar 2020, a fall of 7.1%
Company reported operating profit of Rs 0.01 cr for period ended Mar 2021, operating profit margin at 7.7 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 0.01 compared to Rs 0.0 for previous quarter ended Dec 2020 and Rs -0.33 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.52 cr for period ended Mar 2021 vis-vis sales of Rs 0.48 cr for the period ended Mar 2020, a growth of 7.7%. The 3 year sales cagr stood at 21.5%.
Operating margins expanded to 30.77% for period ended Mar 2021 vis-vis -91.67% for period ended Mar 2020, expansion of 12244.0 bps.
Net Profit reported at Rs -0.02 cr for period ended Mar 2021 vis-vis sales of Rs -0.82 cr for the period ended Mar 2020, rising 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 -0.07 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 -26% on a 1 Year basis vis-vis a return of -16% over the last 3 Years. – The compounded sales growth on a TTM bassis is 20% vis-vis a compounded sales growth of -39% over the last 3 Years. – The compounded profit growth on a TTM basis is 34% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 31.51% vis-vis 31.51% for Dec 2020
Conclusion
– is almost debt free. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -37.49% over past five years.
– has a low return on equity of -2.85% for last 3 years.
– has high debtors of 638.75 days.
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 23.04 and is trading at 24.0 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
