Mehabe score: 3 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
NESCO is engaged in the businesses of Licencing premises in IT park buildings and providing related services, licencing premises for exhibitions and providing services to the organisers, manufacturing of machines and capital equipment, and providing hospitality and catering services.(Source : 202003 Annual Report Page No:74)Site:NESCOMain Symbol:NESCO
Stock trades at 638.0, above its 50dma 587.21. It also trades above its 200dma 554.78. The stock remains bullish on techicals
The 52 week high is at 697.00 and the 52week low is at 423.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of 2.01% over past five years.
-Earnings include an other income of Rs.64.60 Cr.
-Dividend payout has been low at 10.35% of profits over last 3 years
-Debtor days have increased from 22.97 to 37.11 days.
Competition
– The industry trades at a mean P/E of 28.0x. Affle India trades at the industry’s max P/E of 86.41x. NESCO trades at a P/E of 26.0x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 9.0. NESCO has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 15.8%. The max 1- month return was given by C D S L: a return of 56.1 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 75.0 cr compared to Rs 118.0 cr for period ended Mar 2020, a fall of 36.4%
Operating Profits reported at Rs 48.0 cr for period ended Mar 2021 vis-vis 71.0 for period ended Mar 2020 .
Operating Margins expanded 383.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 5.64 compared to Rs 6.94 for previous quarter ended Dec 2020 and Rs 7.51 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 291.0 cr for period ended Mar 2021 vis-vis sales of Rs 432.0 cr for the period ended Mar 2020, a fall of 48.5%. The 3 year sales cagr stood at -3.2%.
Net Profit reported at Rs 172.0 cr for period ended Mar 2021 vis-vis sales of Rs 234.0 cr for the period ended Mar 2020, falling 36.0%.
Company reported a poor Net Profit CAGR of -1.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 51% on a 1 Year basis vis-vis a return of 9% over the last 3 Years. – The compounded sales growth on a TTM bassis is -33% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is -26% vis-vis a compounded profit growth of -1% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 2.14% vis-vis 2.2% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 24.04% vis-vis 24.31% for Dec 2020
Conclusion
– is almost debt free. – The company has delivered a poor sales growth of 2.01% over past five years.
-Earnings include an other income of Rs.64.60 Cr.
-Dividend payout has been low at 10.35% of profits over last 3 years
-Debtor days have increased from 22.97 to 37.11 days.
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 587.21 and is trading at 638.0, thus bullish price action wise.
