Mehabe score: 6 G Factor: 4 Piotski Score: 5 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 4 and Piotski score of 5.
Description
Walchand Peoplefirst is engaged in the business of imparting training in soft skills like leaderships, communication, presentation, etc.Site:501370Main Symbol:WALCHPF
Stock trades at 91.2, above its 50dma 85.52. It also trades above its 200dma 68.68. The stock remains bullish on techicals
The 52 week high is at 119.00 and the 52week low is at 46.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -17.26% over past five years.
– has a low return on equity of 2.20% for last 3 years.
Competition
– The industry trades at a mean P/E of 28.3x. Jubilant Ingrevia trades at the industry’s max P/E of 148.66x. 501370 trades at a P/E of x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 9.0. 501370 has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 12.6%. The max 1- month return was given by C D S L: a return of 34.1 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 2.16 cr compared to Rs 1.17 cr for period ended Jun 2020, a rise of 84.6%
Company reported negative operating profit of Rs -0.95 cr for period ended Jun 2021. For same period last year, operating profit was -1.56
The EPS for Jun 2021 was Rs -1.58 compared to Rs 1.83 for previous quarter ended Mar 2021 and Rs -2.65 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 9.81 cr for period ended TTM vis-vis sales of Rs 8.82 cr for the period ended Mar 2021, a healthy growth of 10.1%. The 3 year sales cagr stood at -27.3%.
Operating margins expanded to -11.52% for period ended TTM vis-vis -19.84% for period ended Mar 2021, expansion of 832.0 bps.
Net Profit reported at Rs 0.15 cr for period ended TTM vis-vis sales of Rs -0.16 cr for the period ended Mar 2021, rising 206.7%.
Company reported a poor Net Profit CAGR of -44.8% 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 0.97 cr for period ended Mar 2021 vis-vis Rs 0.75 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 77% on a 1 Year basis vis-vis a return of -7% over the last 3 Years. – The compounded sales growth on a TTM bassis is -60% vis-vis a compounded sales growth of -31% over the last 3 Years. – The compounded profit growth on a TTM basis is -139% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 42.47% vis-vis 42.59% for Mar 2021
Conclusion
– is almost debt free. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -17.26% over past five years.
– has a low return on equity of 2.20% for last 3 years.
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 85.52 and is trading at 91.2, thus bullish price action wise.
