Mehabe score: 5 G Factor: 4 Piotski Score: 6 The stock has a rating 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 4 and Piotski score of 6.
Description
Established in 1992 & With over two decades of experience, ASM has been providing world class consulting and product development services in the areas of Engineering Services and Product R&D with successful Offshore Development & Support Centers in India and Overseas for its global clients. Having global presence in USA, Singapore, UK, Canada, Mexico and Japan. #Site:526433Main Symbol:ASMTEC
Stock trades at 283.0, above its 50dma 219.52. It also trades above its 200dma 144.86. The stock remains bullish on techicals
The 52 week high is at 306.85 and the 52week low is at 41.78
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 75.39%
Weakness
– Stock is trading at 4.98 times its book value
– has a low return on equity of 9.72% for last 3 years.
Competition
– The industry trades at a mean P/E of 35.3x. Happiest Minds trades at the industry’s max P/E of 137.18x. 526433 trades at a P/E of 34.7x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 9.0. 526433 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 15.1%. The max 1- month return was given by L&T Technology: a return of 24.75 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 41.64 cr compared to Rs 27.36 cr for period ended Jun 2020, a rise of 52.2%
Operating Profits reported at Rs 4.94 cr for period ended Jun 2021 vis-vis 5.33 for period ended Jun 2020 .
Operating Margins contracted -761.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.29 compared to Rs 1.38 for previous quarter ended Mar 2021 and Rs 3.8 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 152.0 cr for period ended TTM vis-vis sales of Rs 137.0 cr for the period ended Mar 2021, a growth of 9.9%. The 3 year sales cagr stood at 20.0%.
Operating margins shrank to 11.0% for period ended TTM vis-vis 12.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 8.0 cr for period ended TTM vis-vis sales of Rs 9.0 cr for the period ended Mar 2021, falling 12.5%.
Company recorded a Net Profit CAGR of 4.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 4.0 cr for period ended Mar 2021 vis-vis Rs -8.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 15.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 545% on a 1 Year basis vis-vis a return of 67% over the last 3 Years. – The compounded sales growth on a TTM bassis is 49% vis-vis a compounded sales growth of 18% over the last 3 Years. – The compounded profit growth on a TTM basis is 558% vis-vis a compounded profit growth of 170% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 38.14% vis-vis 38.14% for Mar 2021
Conclusion
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 75.39% – Stock is trading at 4.98 times its book value
– has a low return on equity of 9.72% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 219.52 and is trading at 283.0, thus bullish price action wise.
