Mehabe score: 6 G Factor: 2 Piotski Score: 7 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 2 and Piotski score of 7.
Description
Global Education is engaged in business segment viz. &Educational Training and Development Activities.(Source : 201903 Annual Report Page No: 19) Site:GLOBAL Main Symbol:GLOBAL
Stock trades at 72.9, above its 50dma 56.71. It also trades above its 200dma 49.04. The stock remains bullish on techicals
The 52 week high is at 77.95 and the 52week low is at 35.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 30.69%
Weakness
– has high debtors of 203.17 days.
Competition
– The industry trades at a mean P/E of 104.6x. CL Educate trades at the industry’s max P/E of 151.26x. GLOBAL trades at a P/E of 11.3x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 7.0. GLOBAL has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 36.0%. The max 1- month return was given by Shanti Educat.: a return of 130.76 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 12.87 cr compared to Rs 7.99 cr for period ended Dec 2020, a rise of 61.1% .
vis-vis 2.7 for period ended Dec 2020 .
Operating Margins expanded 1912.2 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 6.81 cr for period ended Dec 2021 and operating profit margin at 52.9 % for same period.
The EPS for quarter ended Dec 2021 is Rs 4.25 compared to Rs 1.59 for previous quarter ended Sep 2021 and Rs 2.08 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 35.57 cr for period ended TTM vis-vis sales of Rs 25.6 cr for the period ended Mar 2021, a healthy growth of 28.0%. The 3 year sales cagr stood at 5.9%.
Operating margins expanded to 27.02% for period ended TTM vis-vis 14.88% for period ended Mar 2021, expansion of 1214.0 bps.
Net Profit reported at Rs 6.59 cr for period ended TTM vis-vis sales of Rs 3.15 cr for the period ended Mar 2021, rising 52.2%.
Company reported a poor Net Profit CAGR of -0.4% 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 5.72 cr for period ended Mar 2021 vis-vis Rs -1.56 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 18.0% over the last 3 Years. – The stock has given a return of 32% on a 1 Year basis vis-vis a return of 26% over the last 3 Years. – The compounded sales growth on a TTM bassis is 39% vis-vis a compounded sales growth of -7% over the last 3 Years. – The compounded profit growth on a TTM basis is -13% vis-vis a compounded profit growth of -21% over the last 3 Years.
Ratios
Conclusion
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 30.69% – has high debtors of 203.17 days.
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 56.71 and is trading at 72.9 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
