Mehabe score: 7 G Factor: 5 Piotski Score: 7 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 5 and Piotski score of 7.
Description
Avantel is a company engaged in manufacturing of wireless front-end, Satellite Communication, Embedded systems, Signal Processing, Network management and Software development and rendering related customer support services, and having an in-house R&D facility at Vishakhapatnam, Andhra Pradesh.Site:532406Main Symbol:AVANTEL
Stock trades at 729.0, above its 50dma 530.06. It also trades above its 200dma 436.3. The stock remains bullish on techicals
The 52 week high is at 684.90 and the 52week low is at 320.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 92.50% CAGR over last 5 years
-Debtor days have improved from 136.34 to 61.40 days.
Weakness
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Competition
– The industry trades at a mean P/E of 35.8x. ITI trades at the industry’s max P/E of 1305.73x. 532406 trades at a P/E of 19.3x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. 532406 has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 34.8%. The max 1- month return was given by GTL Infra.: a return of 114.81 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 13.72 cr compared to Rs 11.13 cr for period ended Jun 2020, a rise of 23.3%
Operating Profits reported at Rs 4.66 cr for period ended Jun 2021 vis-vis 2.63 for period ended Jun 2020 .
Operating Margins expanded 1033.5 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 7.57 compared to Rs 14.03 for previous quarter ended Mar 2021 and Rs 3.58 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 80.0 cr for period ended TTM vis-vis sales of Rs 78.0 cr for the period ended Mar 2021, a growth of 2.5%. The 3 year sales cagr stood at 16.2%.
Operating margins expanded to 30.0% for period ended TTM vis-vis 29.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 17.0 cr for period ended TTM vis-vis sales of Rs 15.0 cr for the period ended Mar 2021, rising 11.8%.
Company recorded a healthy Net Profit CAGR of 19.3% 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 45.0 cr for period ended Mar 2021 vis-vis Rs 3.0 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 26.0% compared to 24.0% over the last 3 Years. – The stock has given a return of 101% on a 1 Year basis vis-vis a return of 34% over the last 3 Years. – The compounded sales growth on a TTM bassis is 50% vis-vis a compounded sales growth of 15% over the last 3 Years. – The compounded profit growth on a TTM basis is 42% vis-vis a compounded profit growth of 33% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 59.64% vis-vis 59.64% for Mar 2021
Conclusion
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 92.50% CAGR over last 5 years
-Debtor days have improved from 136.34 to 61.40 days. –
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 530.06 and is trading at 729.0, thus bullish price action wise.
