Mehabe score: 3 G Factor: 4 Piotski Score: 9 The stock has a rating . 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 9.
Description
Den Networks is engaged in distribution of television channels through digital cable distribution network.Site:DENMain Symbol:DEN
Stock trades at 55.2, above its 50dma 54.71. However it is trading below its 200dma 57.99. The stock remains weak though short term bullish momentum supports price action. It needs to close above 57.99 for bullish price action to continue
The 52 week high is at 115.05 and the 52week low is at 41.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.95 times its book value
– has delivered good profit growth of 19.71% CAGR over last 5 years
-Debtor days have improved from 44.20 to 26.35 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 6.65% over past five years.
-Tax rate seems low
– has a low return on equity of 2.46% for last 3 years.
-Earnings include an other income of Rs.190.84 Cr.
Competition
– The industry trades at a mean P/E of 31.9x. Saregama India trades at the industry’s max P/E of 51.74x. DEN trades at a P/E of 13.3x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. DEN has a G-Factor of 4 and Piotski scoreof 9.
– Average 1 month return for industry is -0.8%. The max 1- month return was given by Saregama India: a return of 22.49 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 326.0 cr compared to Rs 328.0 cr for period ended Mar 2020, a fall of 0.6%
Operating Profits reported at Rs 65.0 cr for period ended Mar 2021 vis-vis 60.0 for period ended Mar 2020 .
Operating Margins expanded 164.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.77 compared to Rs 1.37 for previous quarter ended Dec 2020 and Rs 0.52 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1307.0 cr for period ended Mar 2021 vis-vis sales of Rs 1291.0 cr for the period ended Mar 2020, a growth of 1.2%. The 3 year sales cagr stood at 0.6%.
Operating margins expanded to 19.0% for period ended Mar 2021 vis-vis 16.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 198.0 cr for period ended Mar 2021 vis-vis sales of Rs 70.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 7.0% compared to 2.0% over the last 3 Years. – The stock has given a return of -34% on a 1 Year basis vis-vis a return of 3% over the last 3 Years. – The compounded sales growth on a TTM bassis is 1% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 183% vis-vis a compounded profit growth of 98% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 1.31% vis-vis 0.71% for Dec 2020 – Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 18.51% vis-vis 12.26% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.95 times its book value
– has delivered good profit growth of 19.71% CAGR over last 5 years
-Debtor days have improved from 44.20 to 26.35 days. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 6.65% over past five years.
-Tax rate seems low
– has a low return on equity of 2.46% for last 3 years.
-Earnings include an other income of Rs.190.84 Cr.
