Mehabe score: 1 G Factor: 1 Piotski Score: 5 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 5.
Description
Siti Networks Limited, formerly Siti Cable Network Limited, is a holding company. The Company is a multi-system operator (MSO), which is engaged in providing cable television network services, Internet services and allied services.Site:SITINETMain Symbol:SITINET
Stock trades at 1.55, below its 50dma 1.57. However it is trading above its 200dma 1.35. 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 1.57.
The 52 week high is at 2.13 and the 52week low is at 0.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Debtor days have improved from 76.19 to 55.06 days.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 6.05% over past five years.
-Promoter holding is low: 6.10%
-Contingent liabilities of Rs.68.76 Cr.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -66.13%
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. SITINET trades at a P/E of x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 8.0. SITINET has a G-Factor of 1 and Piotski scoreof 5.
– Average 1 month return for industry is -3.6%. 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 359.0 cr compared to Rs 377.0 cr for period ended Jun 2020, a fall of 4.8%
Operating Profits reported at Rs 51.0 cr for period ended Jun 2021 vis-vis 68.0 for period ended Jun 2020 .
Operating Margins contracted -383.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs -0.66 compared to Rs -1.1 for previous quarter ended Mar 2021 and Rs -0.54 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1518.0 cr for period ended TTM vis-vis sales of Rs 1537.0 cr for the period ended Mar 2021, a fall of 1.3%. The 3 year sales cagr stood at 1.7%.
Operating margins shrank to 15.0% for period ended TTM vis-vis 16.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs -250.0 cr for period ended TTM vis-vis sales of Rs -240.0 cr for the period ended Mar 2021, falling 0%.
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 -11% on a 1 Year basis vis-vis a return of -49% over the last 3 Years. – The compounded sales growth on a TTM bassis is -8% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is -48% vis-vis a compounded profit growth of -3% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 12.31% vis-vis 12.52% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 81.59% vis-vis 81.37% for Mar 2021
Conclusion
– has reduced debt.
-Debtor days have improved from 76.19 to 55.06 days. – has low interest coverage ratio.
-The company has delivered a poor sales growth of 6.05% over past five years.
-Promoter holding is low: 6.10%
-Contingent liabilities of Rs.68.76 Cr.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -66.13%
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 1.57 and is trading at 1.55. 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
