Mehabe score: 4 G Factor: 4 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 4 and Piotski score of 6.
Description
Allsec Technologies is engaged in the business of providing Customer Lifecycle Management (CLM) and Human Resource Outsourcing (HRO) services for customers located in India and outside India. The services provided by the Company include data verification, processing of orders received through telephone calls, telemarketing, monitoring quality of calls of other call centers, customer services and HR and payroll processing.Site:ALLSECMain Symbol:ALLSEC
Stock trades at 530.0, above its 50dma 409.76. It also trades above its 200dma 332.27. The stock remains bullish on techicals
The 52 week high is at 559.05 and the 52week low is at 181.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of 3.46% over past five years.
Competition
– The industry trades at a mean P/E of 33.8x. Happiest Minds trades at the industry’s max P/E of 138.42x. ALLSEC trades at a P/E of 23.1x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 9.0. ALLSEC has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 25.6%. The max 1- month return was given by Happiest Minds: a return of 69.56 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 73.0 cr compared to Rs 71.0 cr for period ended Mar 2020, a rise of 2.8%
Operating Profits reported at Rs 21.0 cr for period ended Mar 2021 vis-vis 19.0 for period ended Mar 2020 .
Operating Margins expanded 200.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 9.04 compared to Rs 5.82 for previous quarter ended Dec 2020 and Rs 7.14 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 277.0 cr for period ended Mar 2021 vis-vis sales of Rs 294.0 cr for the period ended Mar 2020, a fall of 6.1%. The 3 year sales cagr stood at -5.2%.
Operating margins shrank to 24.0% for period ended Mar 2021 vis-vis 26.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 35.0 cr for period ended Mar 2021 vis-vis sales of Rs 45.0 cr for the period ended Mar 2020, falling 28.6%.
Company reported a poor Net Profit CAGR of -16.4% 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 70.0 cr for period ended Mar 2021 vis-vis Rs 62.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 14.0% compared to 14.0% over the last 3 Years. – The stock has given a return of 169% on a 1 Year basis vis-vis a return of 29% over the last 3 Years. – The compounded sales growth on a TTM bassis is -6% vis-vis a compounded sales growth of -5% over the last 3 Years. – The compounded profit growth on a TTM basis is -19% vis-vis a compounded profit growth of -15% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 26.61% vis-vis 26.61% for Dec 2020
Conclusion
– is almost debt free. – The company has delivered a poor sales growth of 3.46% over past five years.
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 above its 50 DMA 409.76 and is trading at 530.0, thus bullish price action wise.
