Mehabe score: 5 G Factor: 1 Piotski Score: 7 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 1 and Piotski score of 7.
Description
Likhami Consulting is primarily engaged in business of Consultancy, financial services and other allied services.(Source : 201903 Annual Report Page No:64)Site:539927Main Symbol:LIKHAMI
Stock trades at 64.8, above its 50dma 55.41. It also trades above its 200dma 36.07. The stock remains bullish on techicals
The 52 week high is at 65.00 and the 52week low is at 51.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of 2.04% over past five years.
– has a low return on equity of 0.11% for last 3 years.
-Debtor days have increased from 102.86 to 133.37 days.
Competition
– The industry trades at a mean P/E of 24.2x. Likhami Consult. trades at the industry’s max P/E of 460.57x. 539927 trades at a P/E of 461.0x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 9.0. 539927 has a G-Factor of 1 and Piotski scoreof 7.
– Average 1 month return for industry is -1.2%. The max 1- month return was given by Jubilant Ingrevia: a return of 22.52 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.1 cr compared to Rs 0.11 cr for period ended Jun 2020, a fall of 9.1%
Operating Profits reported at Rs 0.01 cr for period ended Jun 2021 vis-vis 0.01 for period ended Jun 2020 .
Operating Margins expanded 90.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.01 compared to Rs 0.11 for previous quarter ended Mar 2021 and Rs 0.01 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.51 cr for period ended TTM vis-vis sales of Rs 0.52 cr for the period ended Mar 2021, a fall of 2.0%. The 3 year sales cagr stood at -7.8%.
Operating margins expanded to 27.45% for period ended TTM vis-vis 26.92% for period ended Mar 2021, expansion of 53.0 bps.
Net Profit reported at Rs 0.14 cr for period ended TTM vis-vis sales of Rs 0.1 cr for the period ended Mar 2021, rising 28.6%.
Company recorded a healthy Net Profit CAGR of 141.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 25% on a 1 Year basis vis-vis a return of 17% over the last 3 Years. – The compounded sales growth on a TTM bassis is 13% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is % vis-vis a compounded profit growth of 49% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 39.14% vis-vis 39.14% for Mar 2021
Conclusion
– is almost debt free. – The company has delivered a poor sales growth of 2.04% over past five years.
– has a low return on equity of 0.11% for last 3 years.
-Debtor days have increased from 102.86 to 133.37 days.
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 55.41 and is trading at 64.8 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
