Mehabe score: 2 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
Shanti Educational Initiatives is engaged in the business of providing education services and activities.(Source : 201903 Annual Report Page No:73)Site:539921
Market Cap:
Rs 256 cr
Price:
159.0
Trading pe:
x
Book-value:
34.2/share
Div yield:
0.00 %
Earning yield:
-0.66%
Face-value:
10.0/share
52week high:
167.90
52week low:
104.35
Technical Analysis
Stock trades at 159.0, above its 50dma 154.0. It also trades above its 200dma 143.02. The stock remains bullish on techicals
The 52 week high is at 167.90 and the 52week low is at 104.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Stock is trading at 4.64 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 1.84% for last 3 years.
Competition
– The industry trades at a mean P/E of 18.9x. Global Education trades at the industry’s max P/E of 15.74x. 539921 trades at a P/E of x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 9.0. 539921 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 17.7%. The max 1- month return was given by MT Educare: a return of 26.38 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.53 cr compared to Rs 0.59 cr for period ended Mar 2020, a fall of 10.2%
Company reported negative operating profit of Rs -0.6 cr for period ended Mar 2021. For same period last year, operating profit was -2.07
The EPS for Mar 2021 was Rs 2.01 compared to Rs -0.74 for previous quarter ended Dec 2020 and Rs -0.24 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3.02 cr for period ended Mar 2021 vis-vis sales of Rs 12.72 cr for the period ended Mar 2020, a fall of 321.2%. The 3 year sales cagr stood at -48.4%.
Operating margins shrank to -45.36% for period ended Mar 2021 vis-vis -5.97% for period ended Mar 2020, contraction of 3939.0 bps.
Net Profit reported at Rs 2.13 cr for period ended Mar 2021 vis-vis sales of Rs 0.07 cr for the period ended Mar 2020, rising 96.7%.
Company recorded a Net Profit CAGR of 8.9% 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 stock has given a return of -0% on a 1 Year basis vis-vis a return of 0% over the last 3 Years. – The compounded sales growth on a TTM bassis is -79% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is -1590% vis-vis a compounded profit growth of -69% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has risen for the period ended Mar 2021. The Mar 2021 fii holding stood at 14.37% vis-vis 11.98% for Dec 2020 – Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 24.42% vis-vis 26.81% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free. – Stock is trading at 4.64 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 1.84% for last 3 years.
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 154.0 and is trading at 159.0 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
