Mehabe score: 7 G Factor: 4 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 4 and Piotski score of 7.
Description
EKI Energy Services is engaged in carbon credits trading, climate change advisory services, business excellence advisory & training services and electrical safety audits. Site:EKI Main Symbol:EKI
Stock trades at 10760.0, above its 50dma 7391.56. It also trades above its 200dma 3681.8. The stock remains bullish on techicals
The 52 week high is at 11611.00 and the 52week low is at 140.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 179.07% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 114.16%
Weakness
– Stock is trading at 47.13 times its book value
Competition
– The industry trades at a mean P/E of 28.7x. EKI Energy trades at the industry’s max P/E of 397.23x. EKI trades at a P/E of 397.0x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 9.0. EKI has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 13.4%. The max 1- month return was given by EKI Energy: a return of 68.13 %
Quarterly Results
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Company reported operating profit of Rs 213.0 cr for period ended Dec 2021 and operating profit margin at 31.0 % for same period.
The EPS for quarter ended Dec 2021 is Rs 234.52 compared to Rs 118.2 for previous quarter ended Sep 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 191.0 cr for period ended Mar 2021 vis-vis sales of Rs 66.0 cr for the period ended Mar 2020, a healthy growth of 65.4%. The 3 year sales cagr stood at 201.1%.
Operating margins expanded to 13.0% for period ended Mar 2021 vis-vis 9.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 19.0 cr for period ended Mar 2021 vis-vis sales of Rs 5.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 16.0 cr for period ended Mar 2021 vis-vis Rs 6.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 120.0% compared to 114.0% over the last 3 Years. – The stock has given a return of % on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 189% vis-vis a compounded sales growth of 201% over the last 3 Years. – The compounded profit growth on a TTM basis is 318% vis-vis a compounded profit growth of 310% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 4.7% vis-vis 5.36% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 15.7% vis-vis 14.91% for Sep 2021
Conclusion
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 179.07% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 114.16% – Stock is trading at 47.13 times its book value
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 7391.56 and is trading at 10760.0, thus bullish price action wise.
