Mehabe score: 3 G Factor: 5 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 5 and Piotski score of 6.
Description
Riddhi Corporate Services is providing solutions under document management, inbound and outbound contact centre, data entry, software development, verification services and recruitment services.Site:540590Main Symbol:RIDDHICORP
Stock trades at 164.0, below its 50dma 164.52. However it is trading above its 200dma 147.81. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 164.52.
The 52 week high is at 168.60 and the 52week low is at 109.50
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has a low return on equity of 5.15% for last 3 years.
-Earnings include an other income of Rs.5.06 Cr.
Competition
– The industry trades at a mean P/E of 24.8x. Jubilant Ingrevia trades at the industry’s max P/E of 180.58x. 540590 trades at a P/E of 57.7x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. 540590 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 0.8%. The max 1- month return was given by Jubilant Ingrevia: a return of 27.86 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 16.17 cr compared to Rs 16.11 cr for period ended Jun 2020, a rise of 0.4%
Operating Profits reported at Rs 0.51 cr for period ended Jun 2021 vis-vis 0.53 for period ended Jun 2020 .
Operating Margins contracted -13.6 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.83 compared to Rs 0.18 for previous quarter ended Mar 2021 and Rs 0.7 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 85.6 cr for period ended TTM vis-vis sales of Rs 85.54 cr for the period ended Mar 2021, a growth of 0.1%. The 3 year sales cagr stood at 19.4%.
Operating margins shrank to 4.3% for period ended TTM vis-vis 4.33% for period ended Mar 2021, contraction of 3.0 bps.
Net Profit reported at Rs 3.23 cr for period ended TTM vis-vis sales of Rs 3.09 cr for the period ended Mar 2021, rising 4.3%.
Company recorded a Net Profit CAGR of 7.9% 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 5.65 cr for period ended Mar 2021 vis-vis Rs -0.9 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 12.0% compared to 5.0% over the last 3 Years. – The stock has given a return of -5% on a 1 Year basis vis-vis a return of 46% over the last 3 Years. – The compounded sales growth on a TTM bassis is 7% vis-vis a compounded sales growth of 62% over the last 3 Years. – The compounded profit growth on a TTM basis is -30% vis-vis a compounded profit growth of 49% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 28.52% vis-vis 28.52% for Mar 2021
Conclusion
– – has a low return on equity of 5.15% for last 3 years.
-Earnings include an other income of Rs.5.06 Cr.
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 164.52 and is trading at 164.0. Shows a near term lack of buying interest.
