Mehabe score: 3 G Factor: 3 Piotski Score: 3 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 3 and Piotski score of 3.
Description
India Tourism Development Corporation Ltd is a Govt. of India undertaking and was established in October 1966, the company is running hotels, restaurants, providing transport facilities, engaged in production, distribution and sale of tourist publicity literature and providing entertainment and duty free shopping facilities to tourists. It has also diversified into consultancy, tourism, engineering projects, training/education in the tourism and hospitality sectors and event management.
Main Points
Facilities
ITDC has a network of four Ashok Group of Hotels, one Joint Venture Hotels, 1 Restaurant, 12 Transport Units, 13 Duty Free Shops at Sea ports and one Sound & Light Shows. #Site:ITDCMain Symbol:ITDC
Stock trades at 383.0, above its 50dma 380.9. It also trades above its 200dma 343.2. The stock remains bullish on techicals
The 52 week high is at 464.50 and the 52week low is at 215.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 11.44 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -17.37% over past five years.
– has a low return on equity of 2.54% for last 3 years.
-Debtor days have increased from 112.15 to 135.67 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 115.1x. Indian Hotels Co trades at the industry’s max P/E of 0.0x. ITDC trades at a P/E of x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 5.0. ITDC has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is -0.7%. The max 1- month return was given by Barbeque-Nation: a return of 22.88 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 44.47 cr compared to Rs 29.57 cr for period ended Jun 2020, a rise of 50.4%
Company reported negative operating profit of Rs -1.75 cr for period ended Jun 2021. For same period last year, operating profit was -17.19
The EPS for Jun 2021 was Rs -0.35 compared to Rs 0.86 for previous quarter ended Mar 2021 and Rs -1.77 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 193.0 cr for period ended TTM vis-vis sales of Rs 177.0 cr for the period ended Mar 2021, a growth of 8.3%. The 3 year sales cagr stood at -18.3%.
Operating margins expanded to -17.0% for period ended TTM vis-vis -26.0% for period ended Mar 2021, expansion of 900.0 bps.
Net Profit reported at Rs -25.0 cr for period ended TTM vis-vis sales of Rs -37.0 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 company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -12.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 57% on a 1 Year basis vis-vis a return of 0% over the last 3 Years. – The compounded sales growth on a TTM bassis is -48% vis-vis a compounded sales growth of -20% over the last 3 Years. – The compounded profit growth on a TTM basis is -273% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.0% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 12.97% vis-vis 12.97% for Mar 2021
Conclusion
– is almost debt free. – Stock is trading at 11.44 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -17.37% over past five years.
– has a low return on equity of 2.54% for last 3 years.
-Debtor days have increased from 112.15 to 135.67 days.
-‘s cost of borrowing seems high
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 380.9 and is trading at 383.0 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
