Mehabe score: 4 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
Diligent Media Corp. Ltd is engaged in the printing and publication of newspapers, magazines, books, inserts, and annual reports. It also publishes online newspaper.Site:DNAMEDIAMain Symbol:DNAMEDIA
Stock trades at 2.35, below its 50dma 2.56. However it is trading above its 200dma 1.58. 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 2.56.
The 52 week high is at 4.71 and the 52week low is at 0.30
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -49.99% over past five years.
– has high debtors of 1823.84 days.
-Promoter holding has decreased over last 3 years: -6.94%
Competition
– The industry trades at a mean P/E of 13.6x. Jagran Prakashan trades at the industry’s max P/E of 19.55x. DNAMEDIA trades at a P/E of x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 7.0. DNAMEDIA has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is -5.7%. The max 1- month return was given by UFO Moviez: a return of 5.72 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1.95 cr compared to Rs 0.27 cr for period ended Jun 2020, a rise of 622.2%
Company reported negative operating profit of Rs -3.2 cr for period ended Jun 2021. For same period last year, operating profit was -14.61
The EPS for Jun 2021 was Rs -0.27 compared to Rs -15.07 for previous quarter ended Mar 2021 and Rs -1.24 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 5.0 cr for period ended TTM vis-vis sales of Rs 3.0 cr for the period ended Mar 2021, a healthy growth of 40.0%. The 3 year sales cagr stood at 35.7%.
Operating margins shrank to -4039.0% for period ended TTM vis-vis -1451.0% for period ended Mar 2021, contraction of 258800.0 bps.
Net Profit reported at Rs -34.0 cr for period ended TTM vis-vis sales of Rs -46.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 286.0 cr for period ended Mar 2021 vis-vis Rs -4.0 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 488% on a 1 Year basis vis-vis a return of -29% over the last 3 Years. – The compounded sales growth on a TTM bassis is 305% vis-vis a compounded sales growth of -71% over the last 3 Years. – The compounded profit growth on a TTM basis is 49% vis-vis a compounded profit growth of 15% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 5.28% vis-vis 5.28% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 32.56% vis-vis 32.56% for Mar 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -49.99% over past five years.
– has high debtors of 1823.84 days.
-Promoter holding has decreased over last 3 years: -6.94%
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 2.56 and is trading at 2.35. 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
