Mehabe score: 3 G Factor: 3 Piotski Score: 8 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 8.
Description
Asian Oilfield Services is engaged in the business of oilfield service Company and reservoir imaging company, offering a suite of geophysical services specialising in land and well seismic services and operation and maintenance services for oilfields.Site:530355
Market Cap:
Rs 428 cr
Price:
112.0
Trading pe:
11.5x
Book-value:
50.6/share
Div yield:
0.00 %
Earning yield:
12.75%
Face-value:
10.0/share
52week high:
121.45
52week low:
83.55
Technical Analysis
Stock trades at 112.0, above its 50dma 102.23. It also trades above its 200dma 97.24. The stock remains bullish on techicals
The 52 week high is at 121.45 and the 52week low is at 83.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 26.73% CAGR over last 5 years
-‘s median sales growth is 19.86% of last 10 years
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
Competition
– The industry trades at a mean P/E of 17.9x. Selan Expl. Tech trades at the industry’s max P/E of 120.59x. 530355 trades at a P/E of 11.5x
– Industry’s mean G-Factor is 3.3 while the mean Piotski score is 8.0. 530355 has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is 13.5%. The max 1- month return was given by Aban Offshore: a return of 36.5 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 81.42 cr compared to Rs 111.86 cr for period ended Mar 2020, a fall of 27.2%
Operating Profits reported at Rs 19.95 cr for period ended Mar 2021 vis-vis 26.37 for period ended Mar 2020 .
Operating Margins expanded 92.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.67 compared to Rs 2.16 for previous quarter ended Dec 2020 and Rs 4.0 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 229.0 cr for period ended Mar 2021 vis-vis sales of Rs 273.0 cr for the period ended Mar 2020, a fall of 19.2%. The 3 year sales cagr stood at 1.0%.
Net Profit reported at Rs 23.0 cr for period ended Mar 2021 vis-vis sales of Rs 29.0 cr for the period ended Mar 2020, falling 26.1%.
Company recorded a healthy Net Profit CAGR of 32.0% 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 company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 20.0% compared to 16.0% over the last 3 Years. – The stock has given a return of 22% on a 1 Year basis vis-vis a return of -1% over the last 3 Years. – The compounded sales growth on a TTM bassis is 27% vis-vis a compounded sales growth of 30% over the last 3 Years. – The compounded profit growth on a TTM basis is 86% vis-vis a compounded profit growth of 44% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.07% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 39.39% vis-vis 39.32% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 26.73% CAGR over last 5 years
-‘s median sales growth is 19.86% of last 10 years – Though the company is reporting repeated profits, it is not paying out dividend
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 102.23 and is trading at 112.0 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
