Mehabe score: 8 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
Ksolves India Ltd. is a software development and technology consulting company. It came up with an IPO in June 2020.Site:KSOLVESMain Symbol:www.nseindia.com
Stock trades at 369.0, above its 50dma 325.05. It also trades above its 200dma 205.25. The stock remains bullish on techicals
The 52 week high is at 409.50 and the 52week low is at 28.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is providing a good dividend yield of 4.41%.
– has delivered good profit growth of 127.77% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 119.40%
Weakness
– Stock is trading at 35.30 times its book value
Competition
– The industry trades at a mean P/E of 30.2x. Happiest Minds trades at the industry’s max P/E of 136.39x. KSOLVES trades at a P/E of 33.6x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 9.0. KSOLVES has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 4.6%. The max 1- month return was given by Persistent Sys: a return of 16.69 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 10.19 cr compared to Rs 4.98 cr for period ended Sep 2020, a rise of 104.6%
Operating Profits reported at Rs 4.12 cr for period ended Sep 2021 vis-vis 1.6 for period ended Sep 2020 .
Operating Margins expanded 830.3 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 2.58 compared to Rs 3.36 for previous quarter ended Jun 2021 and Rs 0.95 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 34.0 cr for period ended TTM vis-vis sales of Rs 24.0 cr for the period ended Mar 2021, a healthy growth of 29.4%. The 3 year sales cagr stood at 89.5%.
Operating margins expanded to 48.0% for period ended TTM vis-vis 45.0% for period ended Mar 2021, expansion of 300.0 bps.
Net Profit reported at Rs 13.0 cr for period ended TTM vis-vis sales of Rs 8.0 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 4.0 cr for period ended Mar 2021 vis-vis Rs 1.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 120.0% compared to 119.0% over the last 3 Years. – The stock has given a return of 1205% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 193% vis-vis a compounded sales growth of 92% over the last 3 Years. – The compounded profit growth on a TTM basis is 1090% vis-vis a compounded profit growth of 410% over the last 3 Years.
Ratios
Conclusion
– is almost debt free.
-Stock is providing a good dividend yield of 4.41%.
– has delivered good profit growth of 127.77% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 119.40% – Stock is trading at 35.30 times its book value
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 325.05 and is trading at 369.0, thus bullish price action wise.
