Mehabe score: 5 G Factor: 3 Piotski Score: 5 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 5.
Description
Suyog Telematics is a growing passive telecommunication infrastructure provider in India, engaged primarily in the business of installing and commissioning of Poles, Towers and Optical Fibre Cable (OFC) Systems in India. It is a Service Provider of Fiber Optic Network Solution, Tower Erection Service and Pole Erection Service.Site:537259
Market Cap:
Rs 447 cr
Price:
440.0
Trading pe:
13.2x
Book-value:
142/share
Div yield:
0.11 %
Earning yield:
11.04%
Face-value:
10.0/share
52week high:
549.00
52week low:
246.80
Technical Analysis
Stock trades at 440.0, above its 50dma 418.7. It also trades above its 200dma 400.23. The stock remains bullish on techicals
The 52 week high is at 549.00 and the 52week low is at 246.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 57.85% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 31.24%
-‘s median sales growth is 31.83% of last 10 years
Weakness
– Debtor days have increased from 62.41 to 80.08 days.
Competition
– The industry trades at a mean P/E of 15.6x. Indus Towers trades at the industry’s max P/E of 18.0x. 537259 trades at a P/E of 13.2x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 5.0. 537259 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 1.6%. The max 1- month return was given by Suyog Telematics: a return of 3.99 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 33.88 cr compared to Rs 31.35 cr for period ended Mar 2020, a rise of 8.1%
Operating Profits reported at Rs 17.98 cr for period ended Mar 2021 vis-vis 14.52 for period ended Mar 2020 .
Operating Margins expanded 675.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -1.24 compared to Rs 8.09 for previous quarter ended Dec 2020 and Rs 8.69 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 132.0 cr for period ended Mar 2021 vis-vis sales of Rs 122.0 cr for the period ended Mar 2020, a growth of 7.6%. The 3 year sales cagr stood at 15.8%.
Operating margins expanded to 50.0% for period ended Mar 2021 vis-vis 45.0% for period ended Mar 2020, expansion of 500.0 bps.
Net Profit reported at Rs 24.0 cr for period ended Mar 2021 vis-vis sales of Rs 33.0 cr for the period ended Mar 2020, falling 37.5%.
Company recorded a healthy Net Profit CAGR of 10.1% 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 29.0% compared to 31.0% over the last 3 Years. – The stock has given a return of 60% on a 1 Year basis vis-vis a return of 12% over the last 3 Years. – The compounded sales growth on a TTM bassis is 9% vis-vis a compounded sales growth of 26% over the last 3 Years. – The compounded profit growth on a TTM basis is 7% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 50.31% vis-vis 50.31% for Dec 2020
Conclusion
– has reduced debt.
– has delivered good profit growth of 57.85% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 31.24%
-‘s median sales growth is 31.83% of last 10 years – Debtor days have increased from 62.41 to 80.08 days.
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 418.7 and is trading at 440.0 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
