Mehabe score: 3 G Factor: 5 Piotski Score: 4 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 5 and Piotski score of 4.
Description
VJTF Eduservices the Company has established itself as an emerging player in the Education Services Segment. The Company provides services to Operational Education Projects. The Company also provides required auxiliary / support services to other companieSite:509026Main Symbol:VJTFEDU
Stock trades at 62.0, above its 50dma 58.83. It also trades above its 200dma 56.95. The stock remains bullish on techicals
The 52 week high is at 70.00 and the 52week low is at 38.55
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 3.44 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -25.98% over past five years.
– has a low return on equity of -10.74% for last 3 years.
-Contingent liabilities of Rs.250.98 Cr.
-Earnings include an other income of Rs.4.08 Cr.
Competition
– The industry trades at a mean P/E of 132.8x. CL Educate trades at the industry’s max P/E of 84.49x. 509026 trades at a P/E of x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 7.0. 509026 has a G-Factor of 5 and Piotski scoreof 4.
– Average 1 month return for industry is -2.4%. The max 1- month return was given by Shanti Educat.: a return of 6.37 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 1.51 cr compared to Rs 1.28 cr for period ended Jun 2020, a rise of 18.0%
Company reported operating profit of Rs 0.48 cr for period ended Sep 2021, operating profit margin at 31.8 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs -0.23 compared to Rs -0.07 for previous quarter ended Jun 2021 and Rs -0.96 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 5.01 cr for period ended Mar 2021 vis-vis sales of Rs 14.53 cr for the period ended Mar 2020, a fall of 190.0%. The 3 year sales cagr stood at -29.4%.
Operating margins shrank to -31.94% for period ended Mar 2021 vis-vis 18.38% for period ended Mar 2020, contraction of 5032.0 bps.
Net Profit reported at Rs -4.99 cr for period ended Mar 2021 vis-vis sales of Rs -4.39 cr for the period ended Mar 2020, falling 0%.
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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -15.0% compared to -11.0% over the last 3 Years. – The stock has given a return of 15% on a 1 Year basis vis-vis a return of -1% over the last 3 Years. – The compounded sales growth on a TTM bassis is -66% vis-vis a compounded sales growth of -29% over the last 3 Years. – The compounded profit growth on a TTM basis is -14% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 35.77% vis-vis 35.77% for Jun 2021
Conclusion
– – Stock is trading at 3.44 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -25.98% over past five years.
– has a low return on equity of -10.74% for last 3 years.
-Contingent liabilities of Rs.250.98 Cr.
-Earnings include an other income of Rs.4.08 Cr.
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 58.83 and is trading at 62.0 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
