Mehabe score: 1 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
KSS in a global player within the Indian media and entertainment. The Company through its subsidiaries and step- down subsidiaries is into the business of Miniplexes, Digital Cinema and Online Trading in Gold & Jewellery, Project Consultancy and General TSite:KSERASERAMain Symbol:KSERASERA
Stock trades at 0.15, below its 50dma 0.18 and below its 200dma 0.2. The stock remains bearish on technicals
The 52 week high is at 0.45 and the 52week low is at 0.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.95 times its book value
-Debtor days have improved from 95.64 to 56.50 days.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.81% over past five years.
– has a low return on equity of -1.75% for last 3 years.
-Contingent liabilities of Rs.11.95 Cr.
Competition
– The industry trades at a mean P/E of 33.2x. Saregama India trades at the industry’s max P/E of 50.54x. KSERASERA trades at a P/E of x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. KSERASERA has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 1.1%. The max 1- month return was given by Saregama India: a return of 34.54 %
Quarterly Results
Sales for period ended Dec 2020 is Rs 0.95 cr compared to Rs 10.79 cr for period ended Dec 2019, a fall of 91.2%
Company reported negative operating profit of Rs -2.14 cr for period ended Dec 2020. For same period last year, operating profit was 0.41
The EPS for Dec 2020 was Rs -0.02 compared to Rs -0.01 for previous quarter ended Sep 2020 and Rs -0.0 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 17.14 cr for period ended TTM vis-vis sales of Rs 46.0 cr for the period ended Mar 2020, a fall of 168.4%. The 3 year sales cagr stood at -24.6%.
Operating margins shrank to 12.6% for period ended TTM vis-vis 15.67% for period ended Mar 2020, contraction of 307.0 bps.
Net Profit reported at Rs -6.12 cr for period ended TTM vis-vis sales of Rs -1.08 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -10.95 cr for period ended Mar 2020 vis-vis Rs -38.11 cr for period ended Mar 2019
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of -63% 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 -65% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is -99% vis-vis a compounded profit growth of 18% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.23% vis-vis 0.23% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 63.42% vis-vis 63.42% for Dec 2020
Conclusion
– Stock is trading at 0.95 times its book value
-Debtor days have improved from 95.64 to 56.50 days. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -6.81% over past five years.
– has a low return on equity of -1.75% for last 3 years.
-Contingent liabilities of Rs.11.95 Cr.
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 0.18 and is trading at 0.15. Shows a near term lack of buying interest.
