Mehabe score: 4 G Factor: 3 Piotski Score: 6 The stock has a rating SELL. 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 6.
Description
Digicontent Ltd through its subsidiary, HT Digital Streams Limited, is engaged in the dissemination of content of general interest in English, Hindi or any other language. It owns the website hindustantimes.com, livemint.com and livehindustand.com.Site:DGCONTENTMain Symbol:DGCONTENT
Stock trades at 11.7, below its 50dma 12.25. However it is trading above its 200dma 11.56. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 12.25.
The 52 week high is at 21.90 and the 52week low is at 6.77
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– has a low return on equity of -69.56% for last 3 years.
Competition
– The industry trades at a mean P/E of 25.2x. Saregama India trades at the industry’s max P/E of 58.29x. DGCONTENT trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. DGCONTENT has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 7.4%. The max 1- month return was given by Inox Leisure: a return of 19.04 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 82.76 cr compared to Rs 70.0 cr for period ended Sep 2020, a rise of 18.2%
Operating Profits reported at Rs 18.45 cr for period ended Sep 2021 vis-vis 16.54 for period ended Sep 2020 .
Operating Margins contracted -133.5 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 1.43 compared to Rs -0.02 for previous quarter ended Jun 2021 and Rs 0.03 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 293.0 cr for period ended TTM vis-vis sales of Rs 249.0 cr for the period ended Mar 2021, a healthy growth of 15.0%. The 3 year sales cagr stood at 3.0%.
Operating margins expanded to 18.0% for period ended TTM vis-vis 11.0% for period ended Mar 2021, expansion of 700.0 bps.
Net Profit reported at Rs -10.0 cr for period ended TTM vis-vis sales of Rs -44.0 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 67.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -506.0% compared to -70.0% over the last 3 Years. – The stock has given a return of 0% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 22% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is 76% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 2.94% vis-vis 2.94% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 26.95% vis-vis 26.95% for Jun 2021
Conclusion
– – has a low return on equity of -69.56% for last 3 years.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 12.25 and is trading at 11.7. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
