Investment Memo: HCKKVENTURE

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Our Rating: HOLD

Mehabe score: 2
G Factor: 4
Piotski Score: 5
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 5.

Description

HCKK Ventures is a company engaged in the activity of Relty Developers, Trading in Medical Equipment.
Site: HCKKVENTURE
Main Symbol: HCKKVENTURE

Price Chart

Technical Analysis

• Stock trades at 36.6, below its 50dma 38.59 and below its 200dma 43.51. The stock remains bearish on technicals
• The 52 week high is at 40.15 and the 52week low is at 30.10

Price Chart

P/E Chart

Sales and Margin

Strengths

– is almost debt free.

Weakness

– Stock is trading at 3.30 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 0.00% over past five years.
– has a low return on equity of -2.13% for last 3 years.

Competition

– The industry trades at a mean P/E of 36.4x. Adani Enterp. trades at the industry’s max P/E of 301.6x. HCKKVENTURE trades at a P/E of x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 8.0. HCKKVENTURE has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 11.2%. The max 1- month return was given by Optiemus Infra.: a return of 34.07 %

Quarterly Results

• Sales for period ended Mar 2022 is Rs 0.01 cr compared to Rs 0.02 cr for period ended Mar 2021, a fall of 50.0%

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• Company reported negative operating profit of Rs -0.07 cr for period ended Mar 2022. For same period last year, operating profit was -0.07.
• The EPS for quarter ended Mar 2022 is Rs -0.11 compared to Rs -0.13 for previous quarter ended Dec 2021 and Rs 0.13 for Mar 2021.

Profit & Loss Statement

Profit&Loss Comments

• Company reported sales of Rs 0.09 cr for period ended Mar 2022 vis-vis sales of Rs 0.07 cr for the period ended Mar 2021, a healthy growth of 22.2%. The 3 year sales cagr stood at -39.7%.
• Operating margins expanded to -211.11% for period ended Mar 2022 vis-vis -300.0% for period ended Mar 2021, expansion of 8889.0 bps.
• Net Profit reported at Rs -0.1 cr for period ended Mar 2022 vis-vis sales of Rs -0.57 cr for the period ended Mar 2021, rising 0%.

Balance Sheet Statement

Cash Flow Statement

Cash Flow comments

Sales Growth

Profit Growth Statement

Profit Growth Statement

Stock Price CAGR

Return of Equity

General Comments

– The stock has given a return of 22% on a 1 Year basis vis-vis a return of -7% over the last 3 Years.
– The compounded sales growth on a TTM bassis is 29% vis-vis a compounded sales growth of -40% over the last 3 Years.
– The compounded profit growth on a TTM basis is 9% vis-vis a compounded profit growth of % over the last 3 Years.

Ratios

Shareholding Pattern

– Public shareholding has remained largely constant. The Mar 2022 public holding stood at 33.3% vis-vis 33.3% for Dec 2021

Conclusion

– is almost debt free. – Stock is trading at 3.30 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 0.00% over past five years.
– has a low return on equity of -2.13% 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 below its 50 DMA 38.59 and is trading at 36.6. Shows a near term lack of buying interest.
• Thus, overall we retain a HOLD on the stock.

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