Mehabe score: 5 G Factor: 5 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 5 and Piotski score of 6.
Description
Spice Mobility is engaged in the trading of mobile handsets and through its subsidiaries, in trading of IT products, mobile handsets and their accessories and the information and communication technology business providing value added services to the telecom operators.Site:DIGISPICEMain Symbol:DIGISPICE
Stock trades at 73.0, above its 50dma 51.62. It also trades above its 200dma 40.24. The stock remains bullish on techicals
The 52 week high is at 114.70 and the 52week low is at 5.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
-Debtor days have improved from 64.27 to 20.70 days.
Weakness
– Stock is trading at 7.03 times its book value
– has a low return on equity of 0.68% for last 3 years.
-Earnings include an other income of Rs.24.53 Cr.
Competition
– The industry trades at a mean P/E of 145.9x. DigiSpice Tech. trades at the industry’s max P/E of 145.92x. DIGISPICE trades at a P/E of 146.0x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 6.0. DIGISPICE has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 40.2%. The max 1- month return was given by DigiSpice Tech.: a return of 76.02 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 228.66 cr compared to Rs 167.12 cr for period ended Jun 2020, a rise of 36.8%
Operating Profits reported at Rs 0.8 cr for period ended Jun 2021 vis-vis 7.09 for period ended Jun 2020 .
Operating Margins contracted -389.3 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs -0.11 compared to Rs -0.22 for previous quarter ended Mar 2021 and Rs 0.08 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 774.0 cr for period ended TTM vis-vis sales of Rs 712.0 cr for the period ended Mar 2021, a growth of 8.0%. The 3 year sales cagr stood at 45.0%.
Operating margins shrank to 1.0% for period ended TTM vis-vis 2.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 7.0 cr for period ended TTM vis-vis sales of Rs 11.0 cr for the period ended Mar 2021, falling 57.1%.
Company recorded a Net Profit CAGR of 5.3% 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 119.0 cr for period ended Mar 2021 vis-vis Rs 57.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 5.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 1204% on a 1 Year basis vis-vis a return of 74% over the last 3 Years. – The compounded sales growth on a TTM bassis is 177% vis-vis a compounded sales growth of 57% over the last 3 Years. – The compounded profit growth on a TTM basis is 193% vis-vis a compounded profit growth of 41% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.91% vis-vis 25.81% for Mar 2021
Conclusion
– is almost debt free.
– is expected to give good quarter
-Debtor days have improved from 64.27 to 20.70 days. – Stock is trading at 7.03 times its book value
– has a low return on equity of 0.68% for last 3 years.
-Earnings include an other income of Rs.24.53 Cr.
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 51.62 and is trading at 73.0, thus bullish price action wise.
