Mehabe score: 4 G Factor: 3 Piotski Score: 7 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 3 and Piotski score of 7.
Description
TV18 Broadcast is engaged in activities spanning across Broadcasting, Digital Content and Allied Businesses.(Source : 202003-01 Annual Report Page No:15)Site:TV18BRDCSTMain Symbol:TV18BRDCST
Stock trades at 40.8, below its 50dma 40.92. However it is trading above its 200dma 34.94. 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 40.92.
The 52 week high is at 48.95 and the 52week low is at 26.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 18.50% CAGR over last 5 years
-‘s median sales growth is 15.83% of last 10 years
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
– has a low return on equity of 7.93% for last 3 years.
-Contingent liabilities of Rs.3374.07 Cr.
Competition
– The industry trades at a mean P/E of 32.0x. Saregama India trades at the industry’s max P/E of 50.57x. TV18BRDCST trades at a P/E of 15.4x
– Industry’s mean G-Factor is 3.3 while the mean Piotski score is 8.0. TV18BRDCST has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is -0.8%. The max 1- month return was given by Saregama India: a return of 21.22 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1155.0 cr compared to Rs 776.0 cr for period ended Jun 2020, a rise of 48.8%
Operating Profits reported at Rs 188.0 cr for period ended Jun 2021 vis-vis 44.0 for period ended Jun 2020 .
Operating Margins expanded 1060.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.58 compared to Rs 0.97 for previous quarter ended Mar 2021 and Rs 0.01 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4877.0 cr for period ended TTM vis-vis sales of Rs 4498.0 cr for the period ended Mar 2021, a growth of 7.8%. The 3 year sales cagr stood at -0.4%.
Operating margins expanded to 20.0% for period ended TTM vis-vis 18.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 554.0 cr for period ended TTM vis-vis sales of Rs 456.0 cr for the period ended Mar 2021, rising 17.7%.
Company recorded a healthy Net Profit CAGR of 49.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1319.0 cr for period ended Mar 2021 vis-vis Rs 153.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 12.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 10% on a 1 Year basis vis-vis a return of -3% over the last 3 Years. – The compounded sales growth on a TTM bassis is -13% vis-vis a compounded sales growth of 45% over the last 3 Years. – The compounded profit growth on a TTM basis is 81% vis-vis a compounded profit growth of 261% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 12.11% vis-vis 12.21% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 26.88% vis-vis 26.78% for Dec 2020
Conclusion
– has reduced debt.
– has delivered good profit growth of 18.50% CAGR over last 5 years
-‘s median sales growth is 15.83% of last 10 years – Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
– has a low return on equity of 7.93% for last 3 years.
-Contingent liabilities of Rs.3374.07 Cr.
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 40.92 and is trading at 40.8. 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
