Mehabe score: 6 G Factor: 3 Piotski Score: 6 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 3 and Piotski score of 6. Site:MINDSPACEMain Symbol:MINDSPACE
Stock trades at 330.0, above its 50dma 293.59. It also trades above its 200dma 296.49. The stock remains bullish on techicals
The 52 week high is at 348.00 and the 52week low is at 274.95
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
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Competition
– The industry trades at a mean P/E of 157.1x. Brookfield India trades at the industry’s max P/E of 362.6x. MINDSPACE trades at a P/E of 56.1x
– Industry’s mean G-Factor is 2.3 while the mean Piotski score is 6.0. MINDSPACE has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 6.4%. The max 1- month return was given by Brookfield India: a return of 11.88 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 424.0 cr compared to Rs 278.0 cr for period ended Sep 2020, a rise of 52.5%
Operating Profits reported at Rs 328.0 cr for period ended Sep 2021 vis-vis 204.0 for period ended Sep 2020 .
Operating Margins expanded 397.7 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 2.03 compared to Rs 0.7 for previous quarter ended Jun 2021 and Rs 1.06 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1719.0 cr for period ended TTM vis-vis sales of Rs 1138.0 cr for the period ended Mar 2021, a healthy growth of 33.8%. The 3 year sales cagr stood at 6.3%.
Operating margins expanded to 75.0% for period ended TTM vis-vis 73.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 406.0 cr for period ended TTM vis-vis sales of Rs 308.0 cr for the period ended Mar 2021, rising 24.1%.
Company reported a poor Net Profit CAGR of -5.4% 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 752.0 cr for period ended Mar 2021 vis-vis Rs 0.0 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 4.0% compared to 0% over the last 3 Years. – The stock has given a return of 9% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is % vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is 6366% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Conclusion
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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 293.59 and is trading at 330.0 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
