Mehabe score: 2 G Factor: 3 Piotski Score: 3 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 3 and Piotski score of 3.
Description
Pritish Nandy Communications Ltd is a media and entertainment company. The Company is engaged in film production and media consultancy.Site:PNCMain Symbol:PNC
Stock trades at 36.0, below its 50dma 39.59. However it is trading above its 200dma 32.6. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 39.59.
The 52 week high is at 61.00 and the 52week low is at 11.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.68 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -18.25% over past five years.
– has a low return on equity of -1.02% for last 3 years.
-Debtor days have increased from 69.11 to 102.20 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 28.5x. Saregama India trades at the industry’s max P/E of 47.57x. PNC trades at a P/E of x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. PNC has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is -5.7%. The max 1- month return was given by Inox Leisure: a return of 5.33 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.88 cr compared to Rs 0.02 cr for period ended Jun 2020, a rise of 4300.0%
Company reported negative operating profit of Rs -0.66 cr for period ended Jun 2021. For same period last year, operating profit was -0.83
The EPS for Jun 2021 was Rs -0.48 compared to Rs -0.17 for previous quarter ended Mar 2021 and Rs -0.5 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 8.62 cr for period ended TTM vis-vis sales of Rs 7.75 cr for the period ended Mar 2021, a healthy growth of 10.1%. The 3 year sales cagr stood at -16.9%.
Operating margins expanded to -60.09% for period ended TTM vis-vis -69.16% for period ended Mar 2021, expansion of 907.0 bps.
Net Profit reported at Rs -4.82 cr for period ended TTM vis-vis sales of Rs -4.84 cr for the period ended Mar 2021, rising 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 -6.0% compared to -1.0% over the last 3 Years. – The stock has given a return of 164% 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 -72% vis-vis a compounded sales growth of -26% over the last 3 Years. – The compounded profit growth on a TTM basis is -472% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 44.22% vis-vis 44.22% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.68 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -18.25% over past five years.
– has a low return on equity of -1.02% for last 3 years.
-Debtor days have increased from 69.11 to 102.20 days.
-‘s cost of borrowing seems high
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 39.59 and is trading at 36.0. 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
