Investment Memo: 543289

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Our Rating: SELL

Mehabe score: 3
G Factor: 0
Piotski Score: 4
The stock has a rating SELL. 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 0 and Piotski score of 4.

Description

Kuberan Global Edu Solutions is engaged in TEST PREP segment including Banking courses, Master of Business Administration Entrance Exams, Staff Selection Commission (SSC), Life Insurance Corporation of India (LIC), Accounting and Professional Courses like Chartered Accountant (CA), Certified Management Accountant (CMA), Company Secretary (CS) and it is expanding to include various other TEST PREP courses under its belt. The company also provides custom Courses and has capabilities to provide customized training to the corporates, government and educational organizations.Site: 543289Main Symbol: KGES

Price Chart

Market Cap: Rs 2.84 cr Price: 13.5 Trading pe: x
Book-value: /share Div yield: % Earning yield: 0.36%
Face-value: /share 52week high: 20.50 52week low: 13.50

Technical Analysis

  • Stock trades at 13.5, below its 50dma 18.35 and below its 200dma 19.51. The stock remains bearish on technicals
  • The 52 week high is at 20.50 and the 52week low is at 13.50

Price Chart

P/E Chart

Sales and Margin

Strengths

– has reduced debt.
– is almost debt free.

Weakness

Competition

– The industry trades at a mean P/E of 46.9x. CL Educate trades at the industry’s max P/E of 76.63x. 543289 trades at a P/E of x
– Industry’s mean G-Factor is 2.5 while the mean Piotski score is 7.0. 543289 has a G-Factor of 0 and Piotski scoreof 4.
– Average 1 month return for industry is 12.8%. The max 1- month return was given by Global Education: a return of 70.14 %

Quarterly Results

    Profit & Loss Statement

    Profit&Loss Comments

    • Company reported sales of Rs 0.93 cr for period ended Mar 2021 vis-vis sales of Rs 0.91 cr for the period ended Mar 2020, a growth of 2.2%. The 3 year sales cagr stood at 259.6%.
    • Operating margins shrank to 18.28% for period ended Mar 2021 vis-vis 23.08% for period ended Mar 2020, contraction of 480.0 bps.
    • Net Profit reported at Rs 0.0 cr for period ended Mar 2021 vis-vis sales of Rs 0.03 cr for the period ended Mar 2020, falling 0%.

    Balance Sheet Statement

    Cash Flow Statement

    Cash Flow comments

    • CashFlow from operating activities was positive.
    • CashFlow from operating activities: Rs 0.07 cr for period ended Mar 2021 vis-vis Rs 0.0 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 % on a 1 Year basis vis-vis a return of % over the last 3 Years.
    – The compounded sales growth on a TTM bassis is 2% vis-vis a compounded sales growth of % over the last 3 Years.
    – The compounded profit growth on a TTM basis is -100% vis-vis a compounded profit growth of % over the last 3 Years.

    Ratios

    Shareholding Pattern

    Conclusion

    – has reduced debt.
    – is almost debt free. –

    • Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
    • Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 18.35 and is trading at 13.5. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
    • Thus, overall, we retain a STRONG SELL.

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