Mehabe score: 5 G Factor: 2 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 2 and Piotski score of 5.
Description
International Travel House is engaged in the business of providing travel related services to travellers in India and abroad.Site:500213Main Symbol:ITHL
Stock trades at 87.3, above its 50dma 80.26. It also trades above its 200dma 67.0. The stock remains bullish on techicals
The 52 week high is at 108.50 and the 52week low is at 42.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.66 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -21.24% over past five years.
– has a low return on equity of -11.45% for last 3 years.
– has high debtors of 188.68 days.
Competition
– The industry trades at a mean P/E of 45.6x. Crown Tours trades at the industry’s max P/E of 693.0x. 500213 trades at a P/E of x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 7.0. 500213 has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is 3.9%. The max 1- month return was given by Transcorp Intl.: a return of 28.02 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 10.83 cr compared to Rs 8.15 cr for period ended Jun 2020, a rise of 32.9%
Company reported negative operating profit of Rs -6.64 cr for period ended Jun 2021. For same period last year, operating profit was -13.96
The EPS for Jun 2021 was Rs -9.87 compared to Rs -8.39 for previous quarter ended Mar 2021 and Rs -19.99 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 62.0 cr for period ended TTM vis-vis sales of Rs 59.0 cr for the period ended Mar 2021, a growth of 4.8%. The 3 year sales cagr stood at -33.2%.
Operating margins expanded to -50.0% for period ended TTM vis-vis -64.0% for period ended Mar 2021, expansion of 1400.0 bps.
Net Profit reported at Rs -37.0 cr for period ended TTM vis-vis sales of Rs -45.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 36.0 cr for period ended Mar 2021 vis-vis Rs 24.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -35.0% compared to -11.0% over the last 3 Years. – The stock has given a return of 76% on a 1 Year basis vis-vis a return of -21% over the last 3 Years. – The compounded sales growth on a TTM bassis is -72% vis-vis a compounded sales growth of -34% over the last 3 Years. – The compounded profit growth on a TTM basis is -449% 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 38.31% vis-vis 38.31% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.66 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -21.24% over past five years.
– has a low return on equity of -11.45% for last 3 years.
– has high debtors of 188.68 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 80.26 and is trading at 87.3 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
