Mehabe score: 7 G Factor: 4 Piotski Score: 9 The stock has a rating . 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 9.
Description
Expleo Solutions is engaged in the business of Software Testing Service.Site:EXPLEOSOLMain Symbol:EXPLEOSOL
Stock trades at 1173.0, above its 50dma 923.69. It also trades above its 200dma 650.63. The stock remains bullish on techicals
The 52 week high is at 1384.00 and the 52week low is at 280.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 27.74%
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 2.64% over past five years.
Competition
– The industry trades at a mean P/E of 35.6x. Happiest Minds trades at the industry’s max P/E of 130.78x. EXPLEOSOL trades at a P/E of 23.8x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 9.0. EXPLEOSOL has a G-Factor of 4 and Piotski scoreof 9.
– Average 1 month return for industry is 16.6%. The max 1- month return was given by Expleo Solutions: a return of 35.27 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 79.0 cr compared to Rs 76.0 cr for period ended Mar 2020, a rise of 3.9%
Operating Profits reported at Rs 17.0 cr for period ended Mar 2021 vis-vis 16.0 for period ended Mar 2020 .
Operating Margins expanded 46.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 10.72 compared to Rs 12.3 for previous quarter ended Dec 2020 and Rs 13.63 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 301.0 cr for period ended Mar 2021 vis-vis sales of Rs 269.0 cr for the period ended Mar 2020, a healthy growth of 10.6%. The 3 year sales cagr stood at 3.6%.
Operating margins expanded to 23.0% for period ended Mar 2021 vis-vis 19.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 50.0 cr for period ended Mar 2021 vis-vis sales of Rs 40.0 cr for the period ended Mar 2020, rising 20.0%.
Company recorded a healthy Net Profit CAGR of 16.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 66.0 cr for period ended Mar 2021 vis-vis Rs 17.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 28.0% compared to 28.0% over the last 3 Years. – The stock has given a return of 305% on a 1 Year basis vis-vis a return of 37% over the last 3 Years. – The compounded sales growth on a TTM bassis is 12% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is 26% vis-vis a compounded profit growth of 16% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.42% vis-vis 0.27% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 42.17% vis-vis 42.32% for Mar 2021
Conclusion
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 27.74% – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 2.64% over past five years.
