Mehabe score: 3 G Factor: 3 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 3 and Piotski score of 5.
Description
Aakash Exploration Services is engaged in providing Support Services of oil and gas extraction.Site:AAKASHMain Symbol:www.nseindia.com
Stock trades at 196.0, below its 50dma 250.79. However it is trading above its 200dma 179.92. 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 250.79.
The 52 week high is at 301.00 and the 52week low is at 50.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Stock is trading at 4.77 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 12.42% for last 3 years.
Competition
– The industry trades at a mean P/E of 17.6x. Aakash Explor. trades at the industry’s max P/E of 36.06x. AAKASH trades at a P/E of 36.1x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. AAKASH has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is -9.4%. The max 1- month return was given by Duke Offshore: a return of -3.59 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 18.04 cr compared to Rs 16.21 cr for period ended Sep 2020, a rise of 11.3%
Operating Profits reported at Rs 3.52 cr for period ended Sep 2021 vis-vis 2.93 for period ended Sep 2020 .
Operating Margins expanded 143.7 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 1.34 compared to Rs 1.55 for previous quarter ended Jun 2021 and Rs 0.8 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 64.58 cr for period ended TTM vis-vis sales of Rs 59.77 cr for the period ended Mar 2021, a growth of 7.4%. The 3 year sales cagr stood at 7.7%.
Operating margins expanded to 21.77% for period ended TTM vis-vis 21.37% for period ended Mar 2021, expansion of 40.0 bps.
Net Profit reported at Rs 5.49 cr for period ended TTM vis-vis sales of Rs 4.14 cr for the period ended Mar 2021, rising 24.6%.
Company recorded a healthy Net Profit CAGR of 18.4% 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 269% on a 1 Year basis vis-vis a return of 119% over the last 3 Years. – The compounded sales growth on a TTM bassis is -1% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 24% vis-vis a compounded profit growth of 20% over the last 3 Years.
Ratios
Conclusion
– has reduced debt. – Stock is trading at 4.77 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 12.42% for last 3 years.
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 250.79 and is trading at 196.0. 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
