Mehabe score: 4 G Factor: 2 Piotski Score: 7 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 2 and Piotski score of 7.
Description
Golden Crest Education & Services Limited engages in the business of education, consultancy, and other allied services in East India.Site:540062Main Symbol:GOLDENCREST
Stock trades at 36.5, above its 50dma 32.59. It also trades above its 200dma 22.15. The stock remains bullish on techicals
The 52 week high is at 41.30 and the 52week low is at 22.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Debtor days have improved from 174.82 to 91.25 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -7.79% over past five years.
– has a low return on equity of 0.16% for last 3 years.
Competition
– The industry trades at a mean P/E of 32.3x. Career Point trades at the industry’s max P/E of 478.5x. 540062 trades at a P/E of 478.0x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 7.0. 540062 has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is -9.3%. The max 1- month return was given by Golden Crest: a return of 0.0 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.08 cr compared to Rs 0.07 cr for period ended Jun 2020, a rise of 14.3%
The EPS for Jun 2021 was Rs 0.02 compared to Rs 0.06 for previous quarter ended Mar 2021 and Rs 0.02 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.25 cr for period ended TTM vis-vis sales of Rs 0.24 cr for the period ended Mar 2021, a growth of 4.0%. The 3 year sales cagr stood at 9.6%.
Operating margins expanded to 4.0% for period ended TTM vis-vis -4.17% for period ended Mar 2021, expansion of 817.0 bps.
Net Profit reported at Rs 0.04 cr for period ended TTM vis-vis sales of Rs 0.03 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -0.01 cr for period ended Mar 2021 vis-vis Rs -0.06 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 66% on a 1 Year basis vis-vis a return of 30% over the last 3 Years. – The compounded sales growth on a TTM bassis is 25% vis-vis a compounded sales growth of 12% over the last 3 Years. – The compounded profit growth on a TTM basis is 50% vis-vis a compounded profit growth of 44% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 41.83% vis-vis 41.83% for Mar 2021
Conclusion
– is almost debt free.
-Debtor days have improved from 174.82 to 91.25 days. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -7.79% over past five years.
– has a low return on equity of 0.16% 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 32.59 and is trading at 36.5 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
