Mehabe score: 0 G Factor: 2 Piotski Score: 5 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 5.
Description
Vertoz is an ad-tech company eager to help businesses emerge swiftly and smartly in their digital expedition. Vertoz helps them with everything right from building a website to running successful ad campaigns. In order to make the whole process hassle-free, Vertoz has developed all the possible products and services in-house. #
Main Points
Geographical Presence
The company is present across the world with the USA accounting for the majority of revenues at 62%, followed by Europe at 23% & the rest contributing to 15% of revenues.Site:VERTOZMain Symbol:www.nseindia.com
Stock trades at 106.0, below its 50dma 160.78 and below its 200dma 190.71. The stock remains bearish on technicals
The 52 week high is at 322.00 and the 52week low is at 110.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Debtor days have increased from 112.89 to 148.63 days.
-Promoter holding has decreased over last 3 years: -16.70%
Competition
– The industry trades at a mean P/E of 22.6x. Jubilant Ingrevia trades at the industry’s max P/E of 164.34x. VERTOZ trades at a P/E of 16.0x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. VERTOZ has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is -9.6%. The max 1- month return was given by Jubilant Ingrevia: a return of 3.92 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 9.29 cr compared to Rs 8.38 cr for period ended Jun 2020, a rise of 10.9%
Operating Profits reported at Rs 1.72 cr for period ended Jun 2021 vis-vis 1.11 for period ended Jun 2020 .
Operating Margins expanded 526.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.98 compared to Rs 2.6 for previous quarter ended Mar 2021 and Rs 0.43 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 57.92 cr for period ended TTM vis-vis sales of Rs 57.0 cr for the period ended Mar 2021, a growth of 1.6%. The 3 year sales cagr stood at 7.8%.
Operating margins shrank to 21.29% for period ended TTM vis-vis 21.58% for period ended Mar 2021, contraction of 29.0 bps.
Net Profit reported at Rs 7.92 cr for period ended TTM vis-vis sales of Rs 8.18 cr for the period ended Mar 2021, falling 3.3%.
Company recorded a Net Profit CAGR of 2.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 15.0% compared to 15.0% over the last 3 Years. – The stock has given a return of -12% on a 1 Year basis vis-vis a return of 2% over the last 3 Years. – The compounded sales growth on a TTM bassis is 40% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is 78% vis-vis a compounded profit growth of 13% over the last 3 Years.
Ratios
Conclusion
– is expected to give good quarter – Debtor days have increased from 112.89 to 148.63 days.
-Promoter holding has decreased over last 3 years: -16.70%
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 160.78 and is trading at 106.0. 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
