Mehabe score: 2 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
Cranes Software International is engaged in the business of enterprise statistical analytics and engineering simulation software products and solutions across the globe.(Source : 201903 Annual Report Page No:66)Site:CRANESSOFTMain Symbol:CRANESSOFT
Stock trades at 2.9, below its 50dma 12.42 and below its 200dma 20.5. The stock remains bearish on technicals
The 52 week high is at 5.11 and the 52week low is at 0.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -31.48% over past five years.
-Promoter holding is low: 6.39%
-Contingent liabilities of Rs.41.65 Cr.
– has high debtors of 344.45 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 28.3x. Happiest Minds trades at the industry’s max P/E of 138.61x. CRANESSOFT trades at a P/E of x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 9.0. CRANESSOFT has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is 2.5%. The max 1- month return was given by Tata Elxsi: a return of 16.42 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1.21 cr compared to Rs 5.49 cr for period ended Jun 2020, a fall of 78.0%
Company reported negative operating profit of Rs -6.19 cr for period ended Jun 2021. For same period last year, operating profit was 0.24
The EPS for Jun 2021 was Rs -0.35 compared to Rs -1.05 for previous quarter ended Mar 2021 and Rs -0.24 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 54.0 cr for period ended TTM vis-vis sales of Rs 59.0 cr for the period ended Mar 2021, a fall of 9.3%. The 3 year sales cagr stood at 27.6%.
Operating margins shrank to -54.0% for period ended TTM vis-vis -39.0% for period ended Mar 2021, contraction of 1500.0 bps.
Net Profit reported at Rs -21.0 cr for period ended TTM vis-vis sales of Rs -20.0 cr for the period ended Mar 2021, falling 0%.
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 -11.0 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 360% on a 1 Year basis vis-vis a return of 27% over the last 3 Years. – The compounded sales growth on a TTM bassis is 134% vis-vis a compounded sales growth of -30% over the last 3 Years. – The compounded profit growth on a TTM basis is 44% vis-vis a compounded profit growth of 20% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 79.53% vis-vis 79.53% for Mar 2021
Conclusion
– has reduced debt.
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of -31.48% over past five years.
-Promoter holding is low: 6.39%
-Contingent liabilities of Rs.41.65 Cr.
– has high debtors of 344.45 days.
-‘s cost of borrowing seems high
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 12.42 and is trading at 2.9. 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
