Mehabe score: 4 G Factor: 3 Piotski Score: 4 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 4.
Description
Airan is a leading provider of consulting, technology, outsourcing and next generation digital services & software, enabling clients to execute strategies for their digital transformation .Site:AIRAN
Market Cap:
Rs 409 cr
Price:
32.7
Trading pe:
77.3x
Book-value:
6.50/share
Div yield:
0.00 %
Earning yield:
1.32%
Face-value:
2.00/share
52week high:
35.95
52week low:
10.50
Technical Analysis
Stock trades at 32.7, above its 50dma 21.87. It also trades above its 200dma 17.94. The stock remains bullish on techicals
The 52 week high is at 35.95 and the 52week low is at 10.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 57.47% CAGR over last 5 years
-Promoter holding has increased by 1.14% over last quarter.
Weakness
– Stock is trading at 5.03 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 6.24% for last 3 years.
Competition
– The industry trades at a mean P/E of 31.9x. Happiest Minds trades at the industry’s max P/E of 85.38x. AIRAN trades at a P/E of 77.3x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 9.0. AIRAN has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 12.8%. The max 1- month return was given by Airan: a return of 50.34 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 19.45 cr compared to Rs 15.91 cr for period ended Mar 2020, a rise of 22.3%
Operating Profits reported at Rs 4.35 cr for period ended Mar 2021 vis-vis 2.22 for period ended Mar 2020 .
Operating Margins expanded 841.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.2 compared to Rs 0.18 for previous quarter ended Dec 2020 and Rs 0.18 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 62.86 cr for period ended Mar 2021 vis-vis sales of Rs 56.67 cr for the period ended Mar 2020, a growth of 9.8%. The 3 year sales cagr stood at 23.7%.
Operating margins shrank to 15.92% for period ended Mar 2021 vis-vis 19.9% for period ended Mar 2020, contraction of 398.0 bps.
Net Profit reported at Rs 5.57 cr for period ended Mar 2021 vis-vis sales of Rs 6.39 cr for the period ended Mar 2020, falling 14.7%.
Company recorded a Net Profit CAGR of 6.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -0.99 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 157% on a 1 Year basis vis-vis a return of -39% over the last 3 Years. – The compounded sales growth on a TTM bassis is 11% vis-vis a compounded sales growth of 25% over the last 3 Years. – The compounded profit growth on a TTM basis is 16% vis-vis a compounded profit growth of 76% over the last 3 Years.
Ratios
Conclusion
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 57.47% CAGR over last 5 years
-Promoter holding has increased by 1.14% over last quarter. – Stock is trading at 5.03 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 6.24% for last 3 years.
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 21.87 and is trading at 32.7 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
