Mehabe score: 6 G Factor: 2 Piotski Score: 3 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 3.
Description
Incorporated in 1995, Suyog Telematics Limited is engaged primarily in the business of installing, commissioning and servicing of poles, towers and optical fibre cabe (OFC ) systems, catering to the telecommunication industry with operators across 12 telecom circles in India.
The company is registered as Infrastructure Provider Category-I (IP-I) with the Department of Telecommunications (DoT). Site:SUYOG Main Symbol:SUYOG
Stock trades at 471.0, above its 50dma 46.24. It also trades above its 200dma 45.51. The stock remains bullish on techicals
The 52 week high is at 52.00 and the 52week low is at 45.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has a good return on equity (ROE) track record: 3 Years ROE 25.99%
-‘s median sales growth is 31.83% of last 10 years
Weakness
– Promoter holding has decreased over last quarter: -0.82%
Competition
– The industry trades at a mean P/E of 12.7x. Suyog Telematics trades at the industry’s max P/E of 16.28x. SUYOG trades at a P/E of 16.4x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 6.0. SUYOG has a G-Factor of 2 and Piotski scoreof 3.
– Average 1 month return for industry is -4.0%. The max 1- month return was given by Indus Towers: a return of -3.14 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 42.0 cr compared to Rs 34.0 cr for period ended Dec 2020, a rise of 23.5% .
vis-vis 15.0 for period ended Dec 2020 .
Operating Margins expanded 350.1 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 20.0 cr for period ended Dec 2021 and operating profit margin at 47.6 % for same period.
The EPS for quarter ended Dec 2021 is Rs 11.19 compared to Rs 11.2 for previous quarter ended Sep 2021 and Rs 8.09 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 149.0 cr for period ended TTM vis-vis sales of Rs 132.0 cr for the period ended Mar 2021, a healthy growth of 11.4%. The 3 year sales cagr stood at 12.4%.
Operating margins expanded to 54.0% for period ended TTM vis-vis 50.0% for period ended Mar 2021, expansion of 400.0 bps.
Net Profit reported at Rs 33.0 cr for period ended TTM vis-vis sales of Rs 24.0 cr for the period ended Mar 2021, rising 27.3%.
Company recorded a Net Profit CAGR of 4.4% 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 18.0% compared to 26.0% over the last 3 Years. – The stock has given a return of -12% on a 1 Year basis vis-vis a return of 20% over the last 3 Years. – The compounded sales growth on a TTM bassis is 11% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is -12% vis-vis a compounded profit growth of 10% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 51.87% vis-vis 51.03% for Sep 2021
Conclusion
– has a good return on equity (ROE) track record: 3 Years ROE 25.99%
-‘s median sales growth is 31.83% of last 10 years – Promoter holding has decreased over last quarter: -0.82%
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 46.24 and is trading at 471.0 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
