Mehabe score: 0 G Factor: 1 Piotski Score: 1 The stock has a rating SELL. 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 1 and Piotski score of 1.
Description
Opto Circuits (India) Limited is an India-based global medical devices and technology company.Site:OPTOCIRCUIMain Symbol:OPTOCIRCUI
Stock trades at 3.7, below its 50dma 4.06 and below its 200dma 4.67. The stock remains bearish on technicals
The 52 week high is at 7.80 and the 52week low is at 2.77
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 3.07 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -35.77% over past five years.
-Promoter holding is low: 18.52%
– has a low return on equity of 2.57% for last 3 years.
-Contingent liabilities of Rs.130.00 Cr.
– might be capitalizing the interest cost
– has high debtors of 179.02 days.
-Promoter holding has decreased over last 3 years: -3.46%
Competition
– The industry trades at a mean P/E of 40.3x. Max Healthcare trades at the industry’s max P/E of 269.54x. OPTOCIRCUI trades at a P/E of x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 9.0. OPTOCIRCUI has a G-Factor of 1 and Piotski scoreof 1.
– Average 1 month return for industry is 14.3%. The max 1- month return was given by Aster DM Health.: a return of 41.24 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.09 cr compared to Rs 7.58 cr for period ended Jun 2020, a fall of 98.8%
Company reported negative operating profit of Rs -1.3 cr for period ended Jun 2021. For same period last year, operating profit was 1.67
The EPS for Jun 2021 was Rs -0.04 compared to Rs -0.07 for previous quarter ended Mar 2021 and Rs 0.05 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.89 cr for period ended TTM vis-vis sales of Rs 8.38 cr for the period ended Mar 2021, a fall of 841.6%. The 3 year sales cagr stood at -79.6%.
Operating margins shrank to -755.06% for period ended TTM vis-vis -44.75% for period ended Mar 2021, contraction of 71031.0 bps.
Net Profit reported at Rs -5.46 cr for period ended TTM vis-vis sales of Rs -2.74 cr for the period ended Mar 2021, falling 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 -46% on a 1 Year basis vis-vis a return of -31% over the last 3 Years. – The compounded sales growth on a TTM bassis is -87% vis-vis a compounded sales growth of -49% over the last 3 Years. – The compounded profit growth on a TTM basis is -129% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2020 fii holding stood at 0.96% vis-vis 0.94% for Sep 2020 – Public shareholding has remained largely constant. The Dec 2020 public holding stood at 80.5% vis-vis 80.52% for Sep 2020
Conclusion
– – Stock is trading at 3.07 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -35.77% over past five years.
-Promoter holding is low: 18.52%
– has a low return on equity of 2.57% for last 3 years.
-Contingent liabilities of Rs.130.00 Cr.
– might be capitalizing the interest cost
– has high debtors of 179.02 days.
-Promoter holding has decreased over last 3 years: -3.46%
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 4.06 and is trading at 3.7. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
