Mehabe score: 4 G Factor: 6 Piotski Score: 6 The stock has a rating 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 6 and Piotski score of 6.
Description
Netlink Solutions (India) Limited is an India-based company engaged in the business of Web designing, print media and investment in equity shares. The Company is involved in information media (advertisement and exhibition related income), and software development. Site:NETLINK Main Symbol:NETLINK
Stock trades at 113.0, above its 50dma 73.59. It also trades above its 200dma 41.53. The stock remains bullish on techicals
The 52 week high is at 118.25 and the 52week low is at 11.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of -47.54% over past five years.
– has a low return on equity of -7.58% for last 3 years.
-Earnings include an other income of Rs.3.67 Cr.
Competition
– The industry trades at a mean P/E of 37.6x. Tata Elxsi trades at the industry’s max P/E of 94.63x. NETLINK trades at a P/E of 11.9x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 9.0. NETLINK has a G-Factor of 6 and Piotski scoreof 6.
– Average 1 month return for industry is 11.0%. The max 1- month return was given by Netlink Solns(I): a return of 77.98 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 0.3 cr compared to Rs 0.01 cr for period ended Dec 2020, a rise of 2900.0% .
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Company reported negative operating profit of Rs -0.02 cr for period ended Dec 2021. For same period last year, operating profit was -0.18.
The EPS for quarter ended Dec 2021 is Rs 1.42 compared to Rs 3.68 for previous quarter ended Sep 2021 and Rs 4.39 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.44 cr for period ended TTM vis-vis sales of Rs 0.06 cr for the period ended Mar 2021, a healthy growth of 86.4%. The 3 year sales cagr stood at -1.5%.
Operating margins expanded to -168.18% for period ended TTM vis-vis -1300.0% for period ended Mar 2021, expansion of 113182.0 bps.
Net Profit reported at Rs 1.64 cr for period ended TTM vis-vis sales of Rs 2.31 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 13.0% compared to -8.0% over the last 3 Years. – The stock has given a return of 787% on a 1 Year basis vis-vis a return of 115% over the last 3 Years. – The compounded sales growth on a TTM bassis is 150% vis-vis a compounded sales growth of -77% over the last 3 Years. – The compounded profit growth on a TTM basis is 441% vis-vis a compounded profit growth of 284% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 38.64% vis-vis 38.64% for Sep 2021
Conclusion
– is almost debt free. – The company has delivered a poor sales growth of -47.54% over past five years.
– has a low return on equity of -7.58% for last 3 years.
-Earnings include an other income of Rs.3.67 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 73.59 and is trading at 113.0, thus bullish price action wise.
