Mehabe score: 3 G Factor: 3 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 3 and Piotski score of 7.
Description
Adroit Infotech is a engaged in the business of Information Technology.Site:ADROITINFOMain Symbol:ADROITINFO
Stock trades at 10.8, above its 50dma 9.84. It also trades above its 200dma 9.49. The stock remains bullish on techicals
The 52 week high is at 14.85 and the 52week low is at 4.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Stock is trading at 2.60 times its book value
-The company has delivered a poor sales growth of -19.45% over past five years.
– has a low return on equity of -1.11% for last 3 years.
– has high debtors of 248.65 days.
Competition
– The industry trades at a mean P/E of 29.5x. Happiest Minds trades at the industry’s max P/E of 111.25x. ADROITINFO trades at a P/E of 11.7x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 9.0. ADROITINFO has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 1.6%. The max 1- month return was given by Adroit Info.: a return of 11.34 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 2.22 cr compared to Rs 1.86 cr for period ended Sep 2020, a rise of 19.4%
Operating Profits reported at Rs 0.77 cr for period ended Sep 2021 vis-vis 0.64 for period ended Sep 2020 .
Operating Margins expanded 27.6 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.19 compared to Rs 0.36 for previous quarter ended Jun 2021 and Rs 0.3 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6.75 cr for period ended TTM vis-vis sales of Rs 6.18 cr for the period ended Mar 2021, a growth of 8.4%. The 3 year sales cagr stood at -24.5%.
Operating margins expanded to 41.48% for period ended TTM vis-vis 29.94% for period ended Mar 2021, expansion of 1154.0 bps.
Net Profit reported at Rs 0.07 cr for period ended TTM vis-vis sales of Rs 0.0 cr for the period ended Mar 2021, rising 0%.
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 77% on a 1 Year basis vis-vis a return of -17% over the last 3 Years. – The compounded sales growth on a TTM bassis is -21% vis-vis a compounded sales growth of -45% over the last 3 Years. – The compounded profit growth on a TTM basis is 57% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 47.83% vis-vis 47.83% for Jun 2021
Conclusion
– has reduced debt.
– is almost debt free. – Stock is trading at 2.60 times its book value
-The company has delivered a poor sales growth of -19.45% over past five years.
– has a low return on equity of -1.11% for last 3 years.
– has high debtors of 248.65 days.
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 9.84 and is trading at 10.8 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
