Mehabe score: 7 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
GTPL was established in 2006, by Mr. Anirudhsinhji Jadeja, Mr. Kanaksinh Rana, and other MSOs, such as Gujarat Telelink Pvt Ltd. It provides services such as analogue cable TV, digital cable TV, and broadband internet in states such as Gujarat, West Bengal, and Maharashtra. The company got its present name after Hathway Cable & Datacom Ltd (HCDL) bought a 50% stake in fiscal 2008. The company got listed on the BSE & NSE in July 2017.
Main Points
Leadership in Gujarat & WB:
Grew to National MSO with footprints in 800+ towns across 13 states in India in 14 Years, providing both Cable TV & Broadband Services. GTPL is currently the no. 2 multisystem operator in India, no. 1 multisystem operator in Gujarat with 67% of market share, no. 2 player in West Bengal with 24% market share, and no. 6 private wireline broadband player in India offering High speed & Truly unlimited data.Site:GTPLMain Symbol:GTPL
Stock trades at 200.0, above its 50dma 168.38. It also trades above its 200dma 135.26. The stock remains bullish on techicals
The 52 week high is at 208.00 and the 52week low is at 77.15
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 91.15% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 42.29%
Weakness
–
Competition
– The industry trades at a mean P/E of 31.9x. Saregama India trades at the industry’s max P/E of 51.62x. GTPL trades at a P/E of 12.0x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. GTPL has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 5.0%. The max 1- month return was given by GTPL Hathway: a return of 25.24 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 749.0 cr compared to Rs 635.0 cr for period ended Mar 2020, a rise of 18.0%
Operating Profits reported at Rs 116.0 cr for period ended Mar 2021 vis-vis 114.0 for period ended Mar 2020 .
Operating Margins contracted -246.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 5.06 compared to Rs 4.02 for previous quarter ended Dec 2020 and Rs -1.21 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2467.0 cr for period ended Mar 2021 vis-vis sales of Rs 2384.0 cr for the period ended Mar 2020, a growth of 3.4%. The 3 year sales cagr stood at 31.3%.
Operating margins expanded to 21.0% for period ended Mar 2021 vis-vis 19.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 188.0 cr for period ended Mar 2021 vis-vis sales of Rs 78.0 cr for the period ended Mar 2020, rising 58.5%.
Company recorded a healthy Net Profit CAGR of 45.5% 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 548.0 cr for period ended Mar 2021 vis-vis Rs 394.0 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 23.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 162% on a 1 Year basis vis-vis a return of 32% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of 31% over the last 3 Years. – The compounded profit growth on a TTM basis is 64% vis-vis a compounded profit growth of 45% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 9.9% vis-vis 9.92% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 14.58% vis-vis 14.56% for Mar 2021
Conclusion
– has reduced debt.
– has delivered good profit growth of 91.15% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 42.29% –
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 168.38 and is trading at 200.0, thus bullish price action wise.
