Mehabe score: 5 G Factor: 3 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 3 and Piotski score of 5.
Description
Aurionpro Solutions Limited is a global technology solutions company. The Company is engaged in offering information technology (IT) and consultancy services. It is also engaged in the sale of equipment and software licenses. It is engaged in the business of providing solutions in corporate banking, treasury, fraud prevention and risk management, Internet banking, governance and compliance.Site:AURIONPROMain Symbol:AURIONPRO
Stock trades at 206.0, above its 50dma 161.49. It also trades above its 200dma 123.99. The stock remains bullish on techicals
The 52 week high is at 216.90 and the 52week low is at 45.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -12.04% over past five years.
-Promoter holding is low: 29.70%
– has a low return on equity of 0.12% for last 3 years.
-Promoters have pledged 42.68% of their holding.
Competition
– The industry trades at a mean P/E of 35.1x. Happiest Minds trades at the industry’s max P/E of 126.58x. AURIONPRO trades at a P/E of x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 9.0. AURIONPRO has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 26.6%. The max 1- month return was given by Happiest Minds: a return of 53.72 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 116.0 cr compared to Rs 75.0 cr for period ended Jun 2020, a rise of 54.7%
Operating Profits reported at Rs 24.0 cr for period ended Jun 2021 vis-vis 16.0 for period ended Jun 2020 .
Operating Margins contracted -64.4 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 6.23 compared to Rs -62.23 for previous quarter ended Mar 2021 and Rs 1.83 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 415.0 cr for period ended TTM vis-vis sales of Rs 374.0 cr for the period ended Mar 2021, a growth of 9.9%. The 3 year sales cagr stood at -7.4%.
Operating margins expanded to 4.0% for period ended TTM vis-vis 2.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs -112.0 cr for period ended TTM vis-vis sales of Rs -122.0 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 49.0 cr for period ended Mar 2021 vis-vis Rs 22.0 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 -21.0% compared to 0.0% over the last 3 Years. – The stock has given a return of 312% on a 1 Year basis vis-vis a return of 4% over the last 3 Years. – The compounded sales growth on a TTM bassis is -18% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is -396% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.0% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 69.9% vis-vis 70.09% for Mar 2021
Conclusion
– has reduced debt. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -12.04% over past five years.
-Promoter holding is low: 29.70%
– has a low return on equity of 0.12% for last 3 years.
-Promoters have pledged 42.68% of their holding.
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 161.49 and is trading at 206.0 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
