Mehabe score: 5 G Factor: 4 Piotski Score: 3 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 4 and Piotski score of 3.
Description
Genesys International Corporation is engaged in providing Geographical Information Services comprising of photogrammetry, remote sensing, cartography, data conversion, state of the art terrestrial and 3D geo-content including location navigation mapping and other computer based related services.Site:GENESYSMain Symbol:GENESYS
Stock trades at 242.0, above its 50dma 153.33. It also trades above its 200dma 117.37. The stock remains bullish on techicals
The 52 week high is at 217.95 and the 52week low is at 41.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
Weakness
– Stock is trading at 4.35 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 11.12% over past five years.
– has a low return on equity of -1.60% for last 3 years.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -3.58%
Competition
– The industry trades at a mean P/E of 28.8x. Genesys Intl. trades at the industry’s max P/E of 147.74x. GENESYS trades at a P/E of 148.0x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. GENESYS has a G-Factor of 4 and Piotski scoreof 3.
– Average 1 month return for industry is 1.8%. The max 1- month return was given by Genesys Intl.: a return of 41.43 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 31.49 cr compared to Rs 21.54 cr for period ended Sep 2020, a rise of 46.2%
Operating Profits reported at Rs 8.59 cr for period ended Sep 2021 vis-vis 7.84 for period ended Sep 2020 .
Operating Margins contracted -911.9 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 1.8 compared to Rs -2.24 for previous quarter ended Jun 2021 and Rs 1.56 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 100.0 cr for period ended TTM vis-vis sales of Rs 80.0 cr for the period ended Mar 2021, a healthy growth of 20.0%. The 3 year sales cagr stood at -4.6%.
Operating margins expanded to 17.0% for period ended TTM vis-vis -4.0% for period ended Mar 2021, expansion of 2100.0 bps.
Net Profit reported at Rs -25.0 cr for period ended TTM vis-vis sales of Rs -43.0 cr for the period ended Mar 2021, 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -9.0% compared to -2.0% over the last 3 Years. – The stock has given a return of 405% on a 1 Year basis vis-vis a return of 19% over the last 3 Years. – The compounded sales growth on a TTM bassis is 14% vis-vis a compounded sales growth of -11% over the last 3 Years. – The compounded profit growth on a TTM basis is 117% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 6.46% vis-vis 6.47% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 45.52% vis-vis 45.51% for Jun 2021
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter – Stock is trading at 4.35 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 11.12% over past five years.
– has a low return on equity of -1.60% for last 3 years.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -3.58%
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 153.33 and is trading at 242.0 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
