Mehabe score: 6 G Factor: 4 Piotski Score: 4 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 4 and Piotski score of 4.
Description
International Travel House is engaged in the business of providing travel related services to travellers in India and abroad. Site:ITHL Main Symbol:ITHL
Stock trades at 101.0, above its 50dma 87.97. It also trades above its 200dma 80.91. The stock remains bullish on techicals
The 52 week high is at 108.50 and the 52week low is at 51.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.86 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -21.24% over past five years.
– has a low return on equity of -11.53% for last 3 years.
– has high debtors of 188.68 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 65.8x. Growington Vent trades at the industry’s max P/E of 92.71x. ITHL trades at a P/E of x
– Industry’s mean G-Factor is 2.6 while the mean Piotski score is 7.0. ITHL has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 13.9%. The max 1- month return was given by Growington Vent: a return of 51.97 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 32.28 cr compared to Rs 16.27 cr for period ended Dec 2020, a rise of 98.4% .
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Company reported operating profit of Rs 3.14 cr for period ended Dec 2021 and operating profit margin at 9.7 % for same periodOperating profit was negative for the same period last year. Company has improved its margins this year.
The EPS for quarter ended Dec 2021 is Rs 2.75 compared to Rs -4.59 for previous quarter ended Sep 2021 and Rs -13.38 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 87.0 cr for period ended TTM vis-vis sales of Rs 59.0 cr for the period ended Mar 2021, a healthy growth of 32.2%. The 3 year sales cagr stood at -25.2%.
Operating margins expanded to -13.0% for period ended TTM vis-vis -64.0% for period ended Mar 2021, expansion of 5100.0 bps.
Net Profit reported at Rs -16.0 cr for period ended TTM vis-vis sales of Rs -45.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 36.0 cr for period ended Mar 2021 vis-vis Rs 24.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -36.0% compared to -12.0% over the last 3 Years. – The stock has given a return of 43% on a 1 Year basis vis-vis a return of -15% over the last 3 Years. – The compounded sales growth on a TTM bassis is -43% vis-vis a compounded sales growth of -34% over the last 3 Years. – The compounded profit growth on a TTM basis is 12% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 38.31% vis-vis 38.31% for Sep 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.86 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -21.24% over past five years.
– has a low return on equity of -11.53% for last 3 years.
– has high debtors of 188.68 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 87.97 and is trading at 101.0 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
