Mehabe score: 2 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
Bodhtree consulting limited is a IT consulting and IT Enabling Services provider (ITES) which enables enterprises to transform their business using cloud, analytics and digital solutions. The co. offers vertical specific solutions to address business challenges of Manufacturing, Healthcare, HiTech, Educational and Government sectors. The company is located in Hyderabad.
Main Points
Services
Cloud solutions-
API solutions for pharmaceutical enterprises, Automated e-Governance program, Cloudbase geotagging solution, Key account planning solution, Post production process management, CRM for educational institutes, Customer support solution, Workforce productivity improvement solutionSite:539122Main Symbol:BODHTREE
Stock trades at 34.0, below its 50dma 39.43 and below its 200dma 36.93. The stock remains bearish on technicals
The 52 week high is at 55.50 and the 52week low is at 22.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 1.01 times its book value
– has delivered good profit growth of 48.36% CAGR over last 5 years
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Promoters have pledged 97.24% of their holding.
-Earnings include an other income of Rs.8.83 Cr.
– has high debtors of 210.40 days.
-Promoter holding has decreased over last 3 years: -8.19%
Competition
– The industry trades at a mean P/E of 29.4x. Happiest Minds trades at the industry’s max P/E of 139.7x. 539122 trades at a P/E of 5.34x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 9.0. 539122 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 5.5%. The max 1- month return was given by L&T Technology: a return of 17.38 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 8.34 cr compared to Rs 27.62 cr for period ended Jun 2020, a fall of 69.8%
Operating Profits reported at Rs 1.39 cr for period ended Jun 2021 vis-vis 2.91 for period ended Jun 2020 .
Operating Margins expanded 613.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.51 compared to Rs 4.5 for previous quarter ended Mar 2021 and Rs 0.56 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 126.0 cr for period ended TTM vis-vis sales of Rs 146.0 cr for the period ended Mar 2021, a fall of 15.9%. The 3 year sales cagr stood at 2.8%.
Net Profit reported at Rs 13.0 cr for period ended TTM vis-vis sales of Rs 13.0 cr for the period ended Mar 2021,
Company recorded a healthy Net Profit CAGR of 17.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 21.0% compared to 15.0% over the last 3 Years. – The stock has given a return of -26% on a 1 Year basis vis-vis a return of -20% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 207% vis-vis a compounded profit growth of 42% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 48.7% vis-vis 48.7% for Mar 2021
Conclusion
– has reduced debt.
-Stock is trading at 1.01 times its book value
– has delivered good profit growth of 48.36% CAGR over last 5 years – Though the company is reporting repeated profits, it is not paying out dividend
-Promoters have pledged 97.24% of their holding.
-Earnings include an other income of Rs.8.83 Cr.
– has high debtors of 210.40 days.
-Promoter holding has decreased over last 3 years: -8.19%
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 below its 50 DMA 39.43 and is trading at 34.0. Shows a near term lack of buying interest.
