Home Investment Memo: 534623

Investment Memo: 534623

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Our Rating: HOLD

Mehabe score: 1
G Factor: 5
Piotski Score: 6
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 5 and Piotski score of 6.

Description

Jupiter Infomedia Limited is a Web Infomedia company with online publications on business, encyclopedia, yellow pages, news and events related to India.Site: 534623Main Symbol: JUPITERIN

Price Chart

Market Cap: Rs 23.9 cr Price: 23.8 Trading pe: 61.3x
Book-value: 10.2/share Div yield: 0.00 % Earning yield: 2.81%
Face-value: 10.0/share 52week high: 40.00 52week low: 22.40

Technical Analysis

  • Stock trades at 23.8, below its 50dma 25.08 and below its 200dma 28.74. The stock remains bearish on technicals
  • The 52 week high is at 40.00 and the 52week low is at 22.40

Price Chart

P/E Chart

Sales and Margin

Strengths

– is almost debt free.

Weakness

– The company has delivered a poor sales growth of 3.46% over past five years.
– has a low return on equity of -0.42% for last 3 years.

Competition

– The industry trades at a mean P/E of 28.3x. Jubilant Ingrevia trades at the industry’s max P/E of 163.88x. 534623 trades at a P/E of 61.3x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 9.0. 534623 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 14.2%. The max 1- month return was given by C D S L: a return of 46.63 %

Quarterly Results

  • Sales for period ended Jun 2021 is Rs 0.05 cr compared to Rs 0.12 cr for period ended Jun 2020, a fall of 58.3%
  • Company reported negative operating profit of Rs -0.02 cr for period ended Jun 2021. For same period last year, operating profit was 0.04
  • The EPS for Jun 2021 was Rs 0.07 compared to Rs -0.08 for previous quarter ended Mar 2021 and Rs 0.11 for Jun 2020

Profit & Loss Statement

Profit&Loss Comments

  • Company reported sales of Rs 0.57 cr for period ended TTM vis-vis sales of Rs 0.64 cr for the period ended Mar 2021, a fall of 12.3%. The 3 year sales cagr stood at 10.7%.
  • Operating margins shrank to 47.37% for period ended TTM vis-vis 51.56% for period ended Mar 2021, contraction of 419.0 bps.
  • Net Profit reported at Rs 0.35 cr for period ended TTM vis-vis sales of Rs 0.39 cr for the period ended Mar 2021, falling 0%.

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 4.0% compared to -0.0% over the last 3 Years.
    – The stock has given a return of -40% on a 1 Year basis vis-vis a return of -26% over the last 3 Years.
    – The compounded sales growth on a TTM bassis is -57% vis-vis a compounded sales growth of 12% over the last 3 Years.
    – The compounded profit growth on a TTM basis is 178% vis-vis a compounded profit growth of 90% over the last 3 Years.

    Ratios

    Shareholding Pattern

    – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 26.85% vis-vis 26.85% for Mar 2021

    Conclusion

    – is almost debt free. – The company has delivered a poor sales growth of 3.46% over past five years.
    – has a low return on equity of -0.42% 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 below its 50 DMA 25.08 and is trading at 23.8. Shows a near term lack of buying interest.
    • Thus, overall we retain a HOLD on the stock.

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