Mehabe score: 4 G Factor: 1 Piotski Score: 1 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 1 and Piotski score of 1.
Description
Asya Infosoft is engaged in the business of providing information technology services.Site:511144Main Symbol:ASYAINFO
Stock trades at 11.5, above its 50dma 6.7. It also trades above its 200dma 5.98. The stock remains bullish on techicals
The 52 week high is at 10.53 and the 52week low is at 3.70
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-Promoter holding is low: 2.45%
-Promoters have pledged 31.45% of their holding.
-Earnings include an other income of Rs.0.96 Cr.
Competition
– The industry trades at a mean P/E of 25.8x. Affle India trades at the industry’s max P/E of 96.42x. 511144 trades at a P/E of 44.9x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 9.0. 511144 has a G-Factor of 1 and Piotski scoreof 1.
– Average 1 month return for industry is 16.8%. The max 1- month return was given by Asya Infosoft: a return of 99.48 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 10.27 cr compared to Rs 3.74 cr for period ended Jun 2020, a rise of 174.6%
Operating Profits reported at Rs 0.34 cr for period ended Jun 2021 vis-vis 0.05 for period ended Jun 2020 .
Operating Margins expanded 197.4 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.05 compared to Rs 0.06 for previous quarter ended Mar 2021 and Rs -0.18 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 81.22 cr for period ended TTM vis-vis sales of Rs 78.18 cr for the period ended Mar 2021, a growth of 3.7%. The 3 year sales cagr stood at 27.0%.
Operating margins expanded to 2.35% for period ended TTM vis-vis 2.07% for period ended Mar 2021, expansion of 28.0 bps.
Net Profit reported at Rs 0.55 cr for period ended TTM vis-vis sales of Rs 0.31 cr for the period ended Mar 2021, rising 43.6%.
Company reported a poor Net Profit CAGR of -19.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of % on a 1 Year basis vis-vis a return of -12% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of 31% over the last 3 Years. – The compounded profit growth on a TTM basis is -28% vis-vis a compounded profit growth of -26% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 97.55% vis-vis 97.55% for Mar 2021
Conclusion
– is expected to give good quarter – has low interest coverage ratio.
-Promoter holding is low: 2.45%
-Promoters have pledged 31.45% of their holding.
-Earnings include an other income of Rs.0.96 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 6.7 and is trading at 11.5 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
