Mehabe score: 6 G Factor: 4 Piotski Score: 7 The stock has a rating 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 4 and Piotski score of 7.
Description
Moschip Technologies is engaged in the business of development and manufacture of System on Chip (SOC) technologies and Internet of Things (IoT).Site:532407Main Symbol:MOSCHIP
Stock trades at 45.8, above its 50dma 37.41. It also trades above its 200dma 26.16. The stock remains bullish on techicals
The 52 week high is at 52.55 and the 52week low is at 10.41
Price Chart
P/E Chart
Sales and Margin
Strengths
– Debtor days have improved from 123.04 to 95.53 days.
Weakness
– Stock is trading at 13.69 times its book value
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -0.44%
– has a low return on equity of -35.29% for last 3 years.
Competition
– The industry trades at a mean P/E of 34.6x. Happiest Minds trades at the industry’s max P/E of 135.28x. 532407 trades at a P/E of x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 9.0. 532407 has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 22.4%. The max 1- month return was given by Happiest Minds: a return of 62.17 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 33.92 cr compared to Rs 23.79 cr for period ended Jun 2020, a rise of 42.6%
Operating Profits reported at Rs 4.95 cr for period ended Jun 2021 vis-vis 1.16 for period ended Jun 2020 .
Operating Margins expanded 971.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.11 compared to Rs -0.07 for previous quarter ended Mar 2021 and Rs -0.2 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 115.0 cr for period ended TTM vis-vis sales of Rs 105.0 cr for the period ended Mar 2021, a growth of 8.7%. The 3 year sales cagr stood at 15.3%.
Operating margins expanded to 9.0% for period ended TTM vis-vis 6.0% for period ended Mar 2021, expansion of 300.0 bps.
Net Profit reported at Rs -4.0 cr for period ended TTM vis-vis sales of Rs -9.0 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 11.0 cr for period ended Mar 2021 vis-vis Rs -11.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was -16.0% compared to -35.0% over the last 3 Years. – The stock has given a return of 236% 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 6% vis-vis a compounded sales growth of 20% over the last 3 Years. – The compounded profit growth on a TTM basis is 68% vis-vis a compounded profit growth of 8% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 42.74% vis-vis 42.29% for Mar 2021
Conclusion
– Debtor days have improved from 123.04 to 95.53 days. – Stock is trading at 13.69 times its book value
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -0.44%
– has a low return on equity of -35.29% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 37.41 and is trading at 45.8, thus bullish price action wise.
