Mehabe score: 4 G Factor: 1 Piotski Score: 7 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 1 and Piotski score of 7.
Description
Kapston Facilities Management Limited is engaged in the business of rendering security and related services, training and facility management, Housekeeping, and cleaning services. [1] Site:KAPSTON Main Symbol:KAPSTON
Stock trades at 115.0, below its 50dma 124.93. However it is trading above its 200dma 104.37. 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 124.93.
The 52 week high is at 185.35 and the 52week low is at 79.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– ‘s median sales growth is 30.70% of last 10 years
Weakness
– has low interest coverage ratio.
Competition
– The industry trades at a mean P/E of 25.8x. Indian Energy Ex trades at the industry’s max P/E of 66.37x. KAPSTON trades at a P/E of 51.2x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 9.0. KAPSTON has a G-Factor of 1 and Piotski scoreof 7.
– Average 1 month return for industry is -9.9%. The max 1- month return was given by BSE: a return of 9.96 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 73.59 cr compared to Rs 54.36 cr for period ended Dec 2020, a rise of 35.4% .
vis-vis 5.51 for period ended Dec 2020 .
Operating Margins contracted -599.2 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 3.05 cr for period ended Dec 2021 and operating profit margin at 4.1 % for same period.
The EPS for quarter ended Dec 2021 is Rs 1.53 compared to Rs 0.15 for previous quarter ended Sep 2021 and Rs 1.94 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 247.0 cr for period ended TTM vis-vis sales of Rs 213.0 cr for the period ended Mar 2021, a healthy growth of 13.8%. The 3 year sales cagr stood at 18.9%.
Operating margins shrank to 5.0% for period ended TTM vis-vis 8.0% for period ended Mar 2021, contraction of 300.0 bps.
Net Profit reported at Rs 2.0 cr for period ended TTM vis-vis sales of Rs 6.0 cr for the period ended Mar 2021, falling 200.0%.
Company reported a poor Net Profit CAGR of -39.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 15.0 cr for period ended Mar 2021 vis-vis Rs -11.0 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 13.0% compared to 22.0% over the last 3 Years. – The stock has given a return of 16% on a 1 Year basis vis-vis a return of 15% over the last 3 Years. – The compounded sales growth on a TTM bassis is 7% vis-vis a compounded sales growth of 22% over the last 3 Years. – The compounded profit growth on a TTM basis is -75% vis-vis a compounded profit growth of 3% over the last 3 Years.
Ratios
Conclusion
– ‘s median sales growth is 30.70% of last 10 years – has low interest coverage ratio.
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 124.93 and is trading at 115.0. 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
