Mehabe score: 5 G Factor: 2 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 2 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:LIKHAMI Main Symbol:LIKHAMI
Stock trades at 61.0, above its 50dma 56.73. It also trades above its 200dma 37.56. The stock remains bullish on techicals
The 52 week high is at 65.00 and the 52week low is at 60.00
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 27.4x. Likhami Consult. trades at the industry’s max P/E of 357.06x. LIKHAMI trades at a P/E of 357.0x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. LIKHAMI has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 0.1%. The max 1- month return was given by Gujarat Gas: a return of 9.87 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 0.12 cr compared to Rs 0.11 cr for period ended Dec 2020, a rise of 9.1% .
vis-vis 0.02 for period ended Dec 2020 .
Operating Margins expanded 2348.5 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.05 cr for period ended Dec 2021 and operating profit margin at 41.7 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.04 compared to Rs 0.03 for previous quarter ended Sep 2021 and Rs 0.02 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.54 cr for period ended TTM vis-vis sales of Rs 0.52 cr for the period ended Mar 2021, a growth of 3.7%. The 3 year sales cagr stood at -6.0%.
Operating margins expanded to 37.04% for period ended TTM vis-vis 26.92% for period ended Mar 2021, expansion of 1012.0 bps.
Net Profit reported at Rs 0.19 cr for period ended TTM vis-vis sales of Rs 0.1 cr for the period ended Mar 2021, rising 47.4%.
Company recorded a healthy Net Profit CAGR of 166.8% 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 -3% on a 1 Year basis vis-vis a return of 13% over the last 3 Years. – The compounded sales growth on a TTM bassis is 26% 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 Dec 2021 public holding stood at 39.14% vis-vis 39.14% for Sep 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 56.73 and is trading at 61.0 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
