Mehabe score: 4 G Factor: 6 Piotski Score: 9 The stock has a rating . 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 9.
Description
Objectone Information Systems is a global I.T. Solution provider with strong estallished presence in India and U.S.Since, 1996. The Company has been offering range of I.T. Products and solutions to its global customers across multiple verticals like Banking, Insurance, Professional Services, Media, Telecommunications, and Healthcare etc. Site:OONE Main Symbol:OONE
Stock trades at 11.7, below its 50dma 12.26. However it is trading above its 200dma 8.13. 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 12.26.
The 52 week high is at 17.35 and the 52week low is at 2.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.85 times its book value
-Debtor days have improved from 116.23 to 91.73 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 10.09% over past five years.
-Promoter holding is low: 16.94%
– has a low return on equity of 2.65% for last 3 years.
Competition
– The industry trades at a mean P/E of 32.0x. Tata Elxsi trades at the industry’s max P/E of 86.32x. OONE trades at a P/E of 10.0x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 9.0. OONE has a G-Factor of 6 and Piotski scoreof 9.
– Average 1 month return for industry is -10.2%. The max 1- month return was given by Tata Elxsi: a return of 9.38 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 11.36 cr compared to Rs 9.54 cr for period ended Dec 2020, a rise of 19.1% .
vis-vis 0.79 for period ended Dec 2020 .
Operating Margins contracted -572.8 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.29 cr for period ended Dec 2021 and operating profit margin at 2.6 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.18 compared to Rs 0.36 for previous quarter ended Sep 2021 and Rs 0.67 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 34.6 cr for period ended TTM vis-vis sales of Rs 28.57 cr for the period ended Mar 2021, a healthy growth of 17.4%. The 3 year sales cagr stood at 9.6%.
Operating margins expanded to 3.29% for period ended TTM vis-vis 2.42% for period ended Mar 2021, expansion of 87.0 bps.
Net Profit reported at Rs 0.48 cr for period ended TTM vis-vis sales of Rs 0.2 cr for the period ended Mar 2021, rising 58.3%.
Company recorded a Net Profit CAGR of 0.7% 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 2.81 cr for period ended Mar 2021 vis-vis Rs -1.69 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 2.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 240% on a 1 Year basis vis-vis a return of 48% over the last 3 Years. – The compounded sales growth on a TTM bassis is 23% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 573% vis-vis a compounded profit growth of 29% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 83.06% vis-vis 83.06% for Sep 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.85 times its book value
-Debtor days have improved from 116.23 to 91.73 days. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 10.09% over past five years.
-Promoter holding is low: 16.94%
– has a low return on equity of 2.65% for last 3 years.
