Mehabe score: 1 G Factor: 1 Piotski Score: 1 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 1 and Piotski score of 1.
Description
Spicy Entertainment & Media offers end-to-end integrated services including Production, Post Production and Media & Creative Services to production houses, studios and broadcasters. The Companys initial focus was on the entertainment industry, which was hitherto dominated by a few players. Site:SPICY Main Symbol:SPICY
Stock trades at 4.06, above its 50dma 3.45. However it is trading below its 200dma 6.84. The stock remains weak though short term bullish momentum supports price action. It needs to close above 6.84 for bullish price action to continue
The 52 week high is at 4.35 and the 52week low is at 1.60
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– has low interest coverage ratio.
-Promoter holding is low: 25.74%
Competition
– The industry trades at a mean P/E of 35.1x. Saregama India trades at the industry’s max P/E of 64.61x. SPICY trades at a P/E of x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 8.0. SPICY has a G-Factor of 1 and Piotski scoreof 1.
– Average 1 month return for industry is 5.1%. The max 1- month return was given by TV18 Broadcast: a return of 30.58 %
Quarterly Results
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Company reported negative operating profit of Rs -0.18 cr for period ended Sep 2021. For same period last year, operating profit was -0.3.
The EPS for quarter ended Sep 2021 is Rs -0.11 compared to Rs -1.06 for previous quarter ended Mar 2021 and Rs -0.16 for Mar 2019.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.87 cr for period ended TTM vis-vis sales of Rs 32.57 cr for the period ended Mar 2021, a fall of 3643.7%. The 3 year sales cagr stood at -51.2%.
Operating margins shrank to -226.44% for period ended TTM vis-vis -0.95% for period ended Mar 2021, contraction of 22549.0 bps.
Net Profit reported at Rs -1.93 cr for period ended TTM vis-vis sales of Rs -0.28 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 stock has given a return of 95% on a 1 Year basis vis-vis a return of -41% over the last 3 Years. – The compounded sales growth on a TTM bassis is 301% vis-vis a compounded sales growth of 184% over the last 3 Years. – The compounded profit growth on a TTM basis is -567% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 74.26% vis-vis 74.26% for Sep 2020
Conclusion
– – has low interest coverage ratio.
-Promoter holding is low: 25.74%
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 3.45 and is trading at 4.06 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
