Mehabe score: 3 G Factor: 2 Piotski Score: 7 The stock has a rating OBSERVE & 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 2 and Piotski score of 7.
Description
8K Miles Software Services is a distributed platform that blends a global talent market place with collaboration tools and cloud infrastructure, helping small and medium enterprises (SMBs) and large enterprise customers to integrate Cloud computing and Identity Security into their Information and Technology (IT) and business strategies.Site:SECURKLOUDMain Symbol:SECURKLOUD
Stock trades at 101.0, above its 50dma 90.91. It also trades above its 200dma 87.7. The stock remains bullish on techicals
The 52 week high is at 122.85 and the 52week low is at 24.85
Price Chart
P/E Chart
Sales and Margin
Strengths
– ‘s median sales growth is 29.04% of last 10 years
Weakness
– Stock is trading at 8.38 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 5.21% over past five years.
-Promoter holding is low: 38.17%
– has a low return on equity of 3.57% for last 3 years.
-Promoter holding has decreased over last 3 years: -19.23%
Competition
– The industry trades at a mean P/E of 34.6x. SecureKloud Tech trades at the industry’s max P/E of 193.21x. SECURKLOUD trades at a P/E of 193.0x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 9.0. SECURKLOUD has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 14.6%. The max 1- month return was given by L&T Technology: a return of 26.0 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 90.26 cr compared to Rs 88.07 cr for period ended Jun 2020, a rise of 2.5%
Company reported negative operating profit of Rs -4.87 cr for period ended Jun 2021. For same period last year, operating profit was 3.43
The EPS for Jun 2021 was Rs -0.73 compared to Rs -0.37 for previous quarter ended Mar 2021 and Rs -0.92 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 353.0 cr for period ended TTM vis-vis sales of Rs 351.0 cr for the period ended Mar 2021, a growth of 0.6%. The 3 year sales cagr stood at -25.2%.
Operating margins shrank to 7.0% for period ended TTM vis-vis 9.0% for period ended Mar 2021, contraction of 200.0 bps.
Net Profit reported at Rs 2.0 cr for period ended TTM vis-vis sales of Rs 2.0 cr for the period ended Mar 2021,
Company reported a poor Net Profit CAGR of -69.3% 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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 5.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 321% on a 1 Year basis vis-vis a return of -35% over the last 3 Years. – The compounded sales growth on a TTM bassis is -8% vis-vis a compounded sales growth of -26% over the last 3 Years. – The compounded profit growth on a TTM basis is 104% vis-vis a compounded profit growth of -79% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.08% vis-vis 0.07% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 61.76% vis-vis 61.77% for Mar 2021
Conclusion
– ‘s median sales growth is 29.04% of last 10 years – Stock is trading at 8.38 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 5.21% over past five years.
-Promoter holding is low: 38.17%
– has a low return on equity of 3.57% for last 3 years.
-Promoter holding has decreased over last 3 years: -19.23%
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 90.91 and is trading at 101.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
