Mehabe score: 4 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
AXISCADES Technologies is a leading end to end engineering solutions and product company. They bring expertise that caters to the digital, engineering and smart manufacturing needs of larger enterprises.Site:AXISCADESMain Symbol:AXISCADES
Stock trades at 89.6, above its 50dma 86.99. It also trades above its 200dma 67.99. The stock remains bullish on techicals
The 52 week high is at 106.10 and the 52week low is at 39.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 1.13 times its book value
Weakness
– The company has delivered a poor sales growth of 6.89% over past five years.
– has a low return on equity of 0.00% for last 3 years.
-Promoters have pledged 68.11% of their holding.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 35.4x. Happiest Minds trades at the industry’s max P/E of 137.18x. AXISCADES trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. AXISCADES has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 12.6%. The max 1- month return was given by L&T Technology: a return of 24.75 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 112.13 cr compared to Rs 106.33 cr for period ended Jun 2020, a rise of 5.5%
Operating Profits reported at Rs 10.4 cr for period ended Jun 2021 vis-vis 8.61 for period ended Jun 2020 .
Operating Margins expanded 117.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.32 compared to Rs -2.82 for previous quarter ended Mar 2021 and Rs -0.26 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 530.0 cr for period ended TTM vis-vis sales of Rs 524.0 cr for the period ended Mar 2021, a growth of 1.1%. The 3 year sales cagr stood at -4.5%.
Net Profit reported at Rs -19.0 cr for period ended TTM vis-vis sales of Rs -22.0 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 122.0 cr for period ended Mar 2021 vis-vis Rs 65.0 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 -7.0% compared to 0.0% over the last 3 Years. – The stock has given a return of 67% on a 1 Year basis vis-vis a return of -8% over the last 3 Years. – The compounded sales growth on a TTM bassis is -22% vis-vis a compounded sales growth of 0% over the last 3 Years. – The compounded profit growth on a TTM basis is -173% 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 32.05% vis-vis 32.05% for Mar 2021
Conclusion
– has reduced debt.
-Stock is trading at 1.13 times its book value – The company has delivered a poor sales growth of 6.89% over past five years.
– has a low return on equity of 0.00% for last 3 years.
-Promoters have pledged 68.11% of their holding.
-‘s cost of borrowing seems high
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 86.99 and is trading at 89.6 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
