Mehabe score: 2 G Factor: 2 Piotski Score: 6 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 2 and Piotski score of 6.
Description
Touchwood Entertainment is engaged in Event Management Services. Site:TOUCHWOOD Main Symbol:TOUCHWOOD
Stock trades at 113.0, below its 50dma 116.19. However it is trading above its 200dma 109.89. 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 116.19.
The 52 week high is at 148.45 and the 52week low is at 71.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 17.18%
Weakness
– Stock is trading at 8.37 times its book value
-The company has delivered a poor sales growth of -3.93% over past five years.
– has high debtors of 250.71 days.
Competition
– The industry trades at a mean P/E of 72.0x. Delta Corp trades at the industry’s max P/E of 95.86x. TOUCHWOOD trades at a P/E of 45.1x
– Industry’s mean G-Factor is 2.5 while the mean Piotski score is 6.0. TOUCHWOOD has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is -1.0%. The max 1- month return was given by Touchwood Enter.: a return of -0.71 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 4.81 cr compared to Rs 2.15 cr for period ended Dec 2020, a rise of 123.7% .
vis-vis 1.15 for period ended Dec 2020 .
Operating Margins contracted -2687.7 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 1.28 cr for period ended Dec 2021 and operating profit margin at 26.6 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.82 compared to Rs 0.71 for previous quarter ended Sep 2021 and Rs 1.1 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 24.07 cr for period ended TTM vis-vis sales of Rs 10.06 cr for the period ended Mar 2021, a healthy growth of 58.2%. The 3 year sales cagr stood at -9.3%.
Operating margins shrank to 15.41% for period ended TTM vis-vis 20.28% for period ended Mar 2021, contraction of 487.0 bps.
Net Profit reported at Rs 2.27 cr for period ended TTM vis-vis sales of Rs 0.98 cr for the period ended Mar 2021, rising 56.8%.
Company reported a poor Net Profit CAGR of -8.5% 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 8.0% compared to 16.0% over the last 3 Years. – The stock has given a return of 23% on a 1 Year basis vis-vis a return of 79% over the last 3 Years. – The compounded sales growth on a TTM bassis is 64% vis-vis a compounded sales growth of -18% over the last 3 Years. – The compounded profit growth on a TTM basis is 657% vis-vis a compounded profit growth of -18% over the last 3 Years.
Ratios
Conclusion
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 17.18% – Stock is trading at 8.37 times its book value
-The company has delivered a poor sales growth of -3.93% over past five years.
– has high debtors of 250.71 days.
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 116.19 and is trading at 113.0. 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
