Mehabe score: 4 G Factor: 1 Piotski Score: 4 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 1 and Piotski score of 4.
Description
Compucom Software is operates in areas like E-Governance projects, ICT Education Projects, software design & development, electronic media, IT & media training & learning Solutions, Wind Power generation etc.Site:COMPUSOFT
Market Cap:
Rs 117 cr
Price:
14.8
Trading pe:
172.0x
Book-value:
15.8/share
Div yield:
2.03 %
Earning yield:
1.55%
Face-value:
2.00/share
52week high:
16.45
52week low:
6.84
Technical Analysis
Stock trades at 14.8, above its 50dma 10.12. It also trades above its 200dma 8.92. The stock remains bullish on techicals
The 52 week high is at 16.45 and the 52week low is at 6.84
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.93 times its book value
– has been maintaining a healthy dividend payout of 197.20%
Weakness
– The company has delivered a poor sales growth of -22.99% over past five years.
– has a low return on equity of 2.07% for last 3 years.
-Earnings include an other income of Rs.4.29 Cr.
– has high debtors of 1135.40 days.
Competition
– The industry trades at a mean P/E of 221.9x. Jetking Infotrai trades at the industry’s max P/E of 503.97x. COMPUSOFT trades at a P/E of 172.0x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 8.0. COMPUSOFT has a G-Factor of 1 and Piotski scoreof 4.
– Average 1 month return for industry is 43.9%. The max 1- month return was given by Zee Learn: a return of 71.43 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 5.29 cr compared to Rs 3.95 cr for period ended Mar 2020, a rise of 33.9%
Company reported negative operating profit of Rs -1.92 cr for period ended Mar 2021. For same period last year, operating profit was -0.24
The EPS for Mar 2021 was Rs 0.19 compared to Rs 0.02 for previous quarter ended Dec 2020 and Rs 0.03 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 17.27 cr for period ended Mar 2021 vis-vis sales of Rs 15.18 cr for the period ended Mar 2020, a healthy growth of 12.1%. The 3 year sales cagr stood at -30.6%.
Operating margins shrank to -18.93% for period ended Mar 2021 vis-vis -4.08% for period ended Mar 2020, contraction of 1485.0 bps.
Net Profit reported at Rs 1.95 cr for period ended Mar 2021 vis-vis sales of Rs 0.43 cr for the period ended Mar 2020, rising 77.9%.
Company reported a poor Net Profit CAGR of -24.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -4.97 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 48% on a 1 Year basis vis-vis a return of 7% over the last 3 Years. – The compounded sales growth on a TTM bassis is 8% vis-vis a compounded sales growth of -36% over the last 3 Years. – The compounded profit growth on a TTM basis is 284% vis-vis a compounded profit growth of -43% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.16% vis-vis 0.16% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.33% vis-vis 25.62% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.93 times its book value
– has been maintaining a healthy dividend payout of 197.20% – The company has delivered a poor sales growth of -22.99% over past five years.
– has a low return on equity of 2.07% for last 3 years.
-Earnings include an other income of Rs.4.29 Cr.
– has high debtors of 1135.40 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 10.12 and is trading at 14.8 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
