Mehabe score: 1 G Factor: 2 Piotski Score: 1 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 2 and Piotski score of 1.
Description
Spel Semiconductor is engaged in a consumer electronics, increasing integration of electronics and connectivity in automotive are major factors driving growth of the global Semiconductor Assembly and Testing Services (SATS) market.Site:517166Main Symbol:SPELS
Stock trades at 17.4, below its 50dma 18.99. However it is trading above its 200dma 15.06. 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 18.99.
The 52 week high is at 25.50 and the 52week low is at 7.73
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.02 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -9.24% over past five years.
– has a low return on equity of -6.50% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 733.21 days.
Competition
– The industry trades at a mean P/E of 58.9x. Cerebra Integr. trades at the industry’s max P/E of 100.01x. 517166 trades at a P/E of x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 7.0. 517166 has a G-Factor of 2 and Piotski scoreof 1.
– Average 1 month return for industry is -6.6%. The max 1- month return was given by MRO-TEK Realty: a return of 50.51 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.86 cr compared to Rs 3.96 cr for period ended Jun 2020, a fall of 78.3%
Company reported negative operating profit of Rs -2.4 cr for period ended Jun 2021. For same period last year, operating profit was 0.07
The EPS for Jun 2021 was Rs -0.78 compared to Rs -1.33 for previous quarter ended Mar 2021 and Rs -0.25 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 12.0 cr for period ended TTM vis-vis sales of Rs 16.0 cr for the period ended Mar 2021, a fall of 33.3%. The 3 year sales cagr stood at -22.7%.
Operating margins shrank to -66.0% for period ended TTM vis-vis -35.0% for period ended Mar 2021, contraction of 3100.0 bps.
Net Profit reported at Rs -11.0 cr for period ended TTM vis-vis sales of Rs -9.0 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -7.0 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 94% on a 1 Year basis vis-vis a return of 23% over the last 3 Years. – The compounded sales growth on a TTM bassis is -62% vis-vis a compounded sales growth of -27% over the last 3 Years. – The compounded profit growth on a TTM basis is -7050% vis-vis a compounded profit growth of 12% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 40.79% vis-vis 40.79% for Mar 2021
Conclusion
– Stock is trading at 1.02 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -9.24% over past five years.
– has a low return on equity of -6.50% for last 3 years.
– might be capitalizing the interest cost
– has high debtors of 733.21 days.
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 18.99 and is trading at 17.4. 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
