Mehabe score: 5 G Factor: 6 Piotski Score: 3 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 6 and Piotski score of 3.
Description
Perfect-Octave Media Projects Company is in the business of Entertainment with an aim to upscale Indian Music as a preferred genre in the lines of other popular genres within the Music Industry.Site:521062Main Symbol:OCTAVE
Stock trades at 3.86, above its 50dma 2.13. It also trades above its 200dma 1.85. The stock remains bullish on techicals
The 52 week high is at 3.19 and the 52week low is at 0.95
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– has low interest coverage ratio.
-Promoter holding is low: 0.26%
– has a low return on equity of -1.17% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 27.4x. Perfect-Octave trades at the industry’s max P/E of 167.38x. 521062 trades at a P/E of 167.0x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. 521062 has a G-Factor of 6 and Piotski scoreof 3.
– Average 1 month return for industry is 22.5%. The max 1- month return was given by Perfect-Octave: a return of 94.95 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 0.35 cr compared to Rs 0.2 cr for period ended Sep 2020, a rise of 75.0%
Company reported operating profit of Rs 0.05 cr for period ended Sep 2021, operating profit margin at 14.3 %.
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 0.01 compared to Rs 0.0 for previous quarter ended Jun 2021 and Rs -0.03 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1.4 cr for period ended TTM vis-vis sales of Rs 1.08 cr for the period ended Mar 2021, a healthy growth of 22.9%. The 3 year sales cagr stood at 9.4%.
Operating margins expanded to 11.43% for period ended TTM vis-vis -14.81% for period ended Mar 2021, expansion of 2624.0 bps.
Net Profit reported at Rs 0.08 cr for period ended TTM vis-vis sales of Rs -0.34 cr for the period ended Mar 2021, rising 525.0%.
Company recorded a healthy Net Profit CAGR of 100.0% 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 242% on a 1 Year basis vis-vis a return of 26% over the last 3 Years. – The compounded sales growth on a TTM bassis is 52% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is 122% vis-vis a compounded profit growth of 13% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 7.76% vis-vis 7.76% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 91.97% vis-vis 91.97% for Mar 2021
Conclusion
– – has low interest coverage ratio.
-Promoter holding is low: 0.26%
– has a low return on equity of -1.17% for last 3 years.
– might be capitalizing the interest cost
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 2.13 and is trading at 3.86 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
