Mehabe score: 2 G Factor: 2 Piotski Score: 6 The stock has a rating SELL. 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 2 and Piotski score of 6.
Description
Touchwood Entertainment is engaged in Event Management Services.Site:TOUCHWOODMain Symbol:www.nseindia.com
Stock trades at 109.0, below its 50dma 118.43. However it is trading above its 200dma 98.1. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 118.43.
The 52 week high is at 148.45 and the 52week low is at 38.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 17.18%
Weakness
– Stock is trading at 8.21 times its book value
-The company has delivered a poor sales growth of -3.93% over past five years.
– has high debtors of 250.71 days.
Competition
– The industry trades at a mean P/E of 497.6x. Delta Corp trades at the industry’s max P/E of 914.26x. TOUCHWOOD trades at a P/E of 80.9x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 6.0. TOUCHWOOD has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is -9.5%. The max 1- month return was given by Delta Corp: a return of -8.03 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 11.75 cr compared to Rs 0.6 cr for period ended Sep 2020, a rise of 1858.3%
Company reported operating profit of Rs 0.83 cr for period ended Sep 2021, operating profit margin at 7.1 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs 0.71 compared to Rs -0.46 for previous quarter ended Jun 2021 and Rs -0.46 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 21.41 cr for period ended TTM vis-vis sales of Rs 10.06 cr for the period ended Mar 2021, a healthy growth of 53.0%. The 3 year sales cagr stood at -12.8%.
Operating margins shrank to 16.72% for period ended TTM vis-vis 20.28% for period ended Mar 2021, contraction of 356.0 bps.
Net Profit reported at Rs 2.56 cr for period ended TTM vis-vis sales of Rs 0.98 cr for the period ended Mar 2021, rising 61.7%.
Company reported a poor Net Profit CAGR of -4.7% over the last 3 years
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 8.0% compared to 16.0% over the last 3 Years. – The stock has given a return of 158% on a 1 Year basis vis-vis a return of 86% over the last 3 Years. – The compounded sales growth on a TTM bassis is -42% vis-vis a compounded sales growth of -18% over the last 3 Years. – The compounded profit growth on a TTM basis is 6750% vis-vis a compounded profit growth of -18% over the last 3 Years.
Ratios
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 17.18% – Stock is trading at 8.21 times its book value
-The company has delivered a poor sales growth of -3.93% over past five years.
– has high debtors of 250.71 days.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 118.43 and is trading at 109.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
