Mehabe score: 6 G Factor: 6 Piotski Score: 7 The stock has a rating 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 6 and Piotski score of 7.
Description
D-Link (India) is primarily engaged in the business of marketing and distribution of Networking products.Site:DLINKINDIAMain Symbol:DLINKINDIA
Stock trades at 159.0, above its 50dma 138.27. It also trades above its 200dma 116.39. The stock remains bullish on techicals
The 52 week high is at 168.65 and the 52week low is at 83.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of 0.14% over past five years.
– has a low return on equity of 13.67% for last 3 years.
Competition
– The industry trades at a mean P/E of 149.0x. Cerebra Integr. trades at the industry’s max P/E of 437.06x. DLINKINDIA trades at a P/E of 14.8x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. DLINKINDIA has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 15.2%. The max 1- month return was given by Spel Semiconduct: a return of 57.47 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 162.69 cr compared to Rs 125.33 cr for period ended Jun 2020, a rise of 29.8%
Operating Profits reported at Rs 11.52 cr for period ended Jun 2021 vis-vis 2.74 for period ended Jun 2020 .
Operating Margins expanded 489.5 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 2.4 compared to Rs 2.78 for previous quarter ended Mar 2021 and Rs 0.53 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 764.0 cr for period ended TTM vis-vis sales of Rs 727.0 cr for the period ended Mar 2021, a growth of 4.8%. The 3 year sales cagr stood at 2.2%.
Operating margins expanded to 7.0% for period ended TTM vis-vis 6.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 38.0 cr for period ended TTM vis-vis sales of Rs 31.0 cr for the period ended Mar 2021, rising 18.4%.
Company recorded a healthy Net Profit CAGR of 13.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 75.0 cr for period ended Mar 2021 vis-vis Rs 28.0 cr for period ended Mar 2020
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 12.0% compared to 14.0% over the last 3 Years. – The stock has given a return of 86% on a 1 Year basis vis-vis a return of 22% over the last 3 Years. – The compounded sales growth on a TTM bassis is 13% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is 47% vis-vis a compounded profit growth of 35% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.0% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 48.98% vis-vis 48.98% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free. – The company has delivered a poor sales growth of 0.14% over past five years.
– has a low return on equity of 13.67% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 138.27 and is trading at 159.0, thus bullish price action wise.
