Mehabe score: 5 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
Baba Arts is engaged in the business of Motion, Picture, Videotape & Television Programme Production Services.Site:532380Main Symbol:BABA
Stock trades at 18.0, above its 50dma 17.69. It also trades above its 200dma 12.57. The stock remains bullish on techicals
The 52 week high is at 23.60 and the 52week low is at 5.72
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 4.88 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 8.98% for last 3 years.
-Earnings include an other income of Rs.1.20 Cr.
Competition
– The industry trades at a mean P/E of 28.0x. Saregama India trades at the industry’s max P/E of 50.53x. 532380 trades at a P/E of 33.8x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. 532380 has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 0.0%. The max 1- month return was given by Saregama India: a return of 21.23 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 3.0 cr compared to Rs 6.14 cr for period ended Jun 2020, a fall of 51.1%
Operating Profits reported at Rs 1.52 cr for period ended Jun 2021 vis-vis 0.06 for period ended Jun 2020 .
Operating Margins expanded 4968.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.28 compared to Rs 0.12 for previous quarter ended Mar 2021 and Rs 0.05 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 10.18 cr for period ended TTM vis-vis sales of Rs 13.32 cr for the period ended Mar 2021, a fall of 30.8%. The 3 year sales cagr stood at 127.0%.
Operating margins expanded to 34.68% for period ended TTM vis-vis 15.54% for period ended Mar 2021, expansion of 1914.0 bps.
Net Profit reported at Rs 4.0 cr for period ended TTM vis-vis sales of Rs 2.8 cr for the period ended Mar 2021, rising 30.0%.
Company recorded a healthy Net Profit CAGR of 42.2% 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 16.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 213% on a 1 Year basis vis-vis a return of 78% over the last 3 Years. – The compounded sales growth on a TTM bassis is 7300% vis-vis a compounded sales growth of 111% over the last 3 Years. – The compounded profit growth on a TTM basis is 522% vis-vis a compounded profit growth of 40% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.02% vis-vis 0.02% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.3% vis-vis 25.3% for Mar 2021
Conclusion
– is almost debt free. – Stock is trading at 4.88 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 8.98% for last 3 years.
-Earnings include an other income of Rs.1.20 Cr.
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 17.69 and is trading at 18.0, thus bullish price action wise.
