Mehabe score: 1 G Factor: 2 Piotski Score: 5 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 2 and Piotski score of 5.
Description
GTL Infrastructure is engaged in the business of passive infrastructure sharing which is based on building, owning, operating and maintaining passive telecom infrastructure sites capable of hosting active network components of various technologies of multiple telecom operators as well providing energy management solutions.Site:GTLINFRAMain Symbol:GTLINFRA
Stock trades at 1.5, below its 50dma 1.97 and below its 200dma 1.55. The stock remains bearish on technicals
The 52 week high is at 4.90 and the 52week low is at 0.45
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 9.08% over past five years.
-Promoter holding is low: 3.33%
-Contingent liabilities of Rs.1487.58 Cr.
-Promoters have pledged 100.00% of their holding.
-Promoter holding has decreased over last 3 years: -16.72%
Competition
– The industry trades at a mean P/E of 26.4x. ITI trades at the industry’s max P/E of 437.85x. GTLINFRA trades at a P/E of x
– Industry’s mean G-Factor is 2.1 while the mean Piotski score is 7.0. GTLINFRA has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is 3.2%. The max 1- month return was given by ADC India: a return of 24.71 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 364.0 cr compared to Rs 346.0 cr for period ended Sep 2020, a rise of 5.2%
Operating Profits reported at Rs 97.0 cr for period ended Sep 2021 vis-vis 112.0 for period ended Sep 2020 .
Operating Margins contracted -572.2 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs -0.16 compared to Rs -0.17 for previous quarter ended Jun 2021 and Rs -0.14 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1446.0 cr for period ended TTM vis-vis sales of Rs 1410.0 cr for the period ended Mar 2021, a growth of 2.5%. The 3 year sales cagr stood at -1.2%.
Operating margins shrank to 17.0% for period ended TTM vis-vis 30.0% for period ended Mar 2021, contraction of 1300.0 bps.
Net Profit reported at Rs -1315.0 cr for period ended TTM vis-vis sales of Rs -1271.0 cr for the period ended Mar 2021, falling 0%.
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 150% on a 1 Year basis vis-vis a return of 9% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of -15% over the last 3 Years. – The compounded profit growth on a TTM basis is -6% vis-vis a compounded profit growth of -27% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 1.9% vis-vis 1.85% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 35.05% vis-vis 33.83% for Jun 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of 9.08% over past five years.
-Promoter holding is low: 3.33%
-Contingent liabilities of Rs.1487.58 Cr.
-Promoters have pledged 100.00% of their holding.
-Promoter holding has decreased over last 3 years: -16.72%
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 1.97 and is trading at 1.5. 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
