Mehabe score: 5 G Factor: 3 Piotski Score: 6 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 3 and Piotski score of 6.
Description
Elnet Technologies core competence is to develop and manage Software Technology Park. ETL has pioneered the concept of Software Technology Park in India and also providing infrastructure to Information Technology and Information technology enabled services industry companies.Site:517477
Market Cap:
Rs 67.3 cr
Price:
168.0
Trading pe:
5.87x
Book-value:
242/share
Div yield:
0.00 %
Earning yield:
71.87%
Face-value:
10.0/share
52week high:
189.00
52week low:
83.65
Technical Analysis
Stock trades at 168.0, above its 50dma 145.39. It also trades above its 200dma 128.92. The stock remains bullish on techicals
The 52 week high is at 189.00 and the 52week low is at 83.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.69 times its book value
Weakness
– The company has delivered a poor sales growth of 2.28% over past five years.
– has a low return on equity of 13.12% for last 3 years.
-Earnings include an other income of Rs.5.13 Cr.
Competition
– The industry trades at a mean P/E of 42.4x. Phoenix Mills trades at the industry’s max P/E of 266.95x. 517477 trades at a P/E of 5.87x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. 517477 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 9.5%. The max 1- month return was given by Elnet Technolog: a return of 18.08 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 5.3 cr compared to Rs 5.83 cr for period ended Mar 2020, a fall of 9.1%
Operating Profits reported at Rs 3.96 cr for period ended Mar 2021 vis-vis 3.26 for period ended Mar 2020 .
Operating Margins expanded 1879.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 7.58 compared to Rs 7.45 for previous quarter ended Dec 2020 and Rs 6.25 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 21.0 cr for period ended Mar 2021 vis-vis sales of Rs 24.0 cr for the period ended Mar 2020, a fall of 14.3%. The 3 year sales cagr stood at -1.5%.
Operating margins expanded to 73.0% for period ended Mar 2021 vis-vis 60.0% for period ended Mar 2020, expansion of 1300.0 bps.
Net Profit reported at Rs 12.0 cr for period ended Mar 2021 vis-vis sales of Rs 11.0 cr for the period ended Mar 2020, rising 8.3%.
Company recorded a healthy Net Profit CAGR of 10.1% over the last 3 years
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 -22.0 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 13.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 89% on a 1 Year basis vis-vis a return of 11% over the last 3 Years. – The compounded sales growth on a TTM bassis is -7% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 6% vis-vis a compounded profit growth of 11% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 47.15% vis-vis 47.15% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.69 times its book value – The company has delivered a poor sales growth of 2.28% over past five years.
– has a low return on equity of 13.12% for last 3 years.
-Earnings include an other income of Rs.5.13 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 145.39 and is trading at 168.0 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
