Mehabe score: 4 G Factor: 4 Piotski Score: 6 The stock has a rating 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 4 and Piotski score of 6.
Description
TVS Electronics Ltd manufactures and sells Point of sale devices, Printers, Keyboards, etc. besides providing service for various Original Equipment Manufacturers via delivery models like exclusive service centers, multi brand service centers, Onsite support, repair centers and factories.#
Main Points
Products & Solutions Vertical (52% of revenues)#
The company manufactures and trades various transaction automation products that include Dot Matrix Printers, Mechanical Keyboards, Thermal Printers, Label Printers, Barcode Scanners and others.#
It caters to various sectors viz. Retail – SME, Government, BFSI, Hospitality, Healthcare, E-commerce and Transport, Large Format Retail (LFR) Stores and Quick Service Restaurants (QSR).
The market share for thermal printers, label printers and QR code scanners is 24%, 14% and 19% respectively.Site:TVSELECTMain Symbol:TVSELECT
Stock trades at 190.0, above its 50dma 170.07. It also trades above its 200dma 139.91. The stock remains bullish on techicals
The 52 week high is at 217.00 and the 52week low is at 84.15
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Stock is trading at 4.34 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -17.66% over past five years.
– has a low return on equity of 5.05% for last 3 years.
-Debtor days have increased from 36.13 to 44.97 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 172.2x. TVS Elec. trades at the industry’s max P/E of 460.57x. TVSELECT trades at a P/E of 461.0x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 8.0. TVSELECT has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 6.0%. The max 1- month return was given by Spel Semiconduct: a return of 30.1 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 72.36 cr compared to Rs 53.4 cr for period ended Mar 2020, a rise of 35.5%
Company reported operating profit of Rs 7.66 cr for period ended Mar 2021, operating profit margin at 10.6 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 3.14 compared to Rs 2.21 for previous quarter ended Dec 2020 and Rs -3.05 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 225.0 cr for period ended Mar 2021 vis-vis sales of Rs 259.0 cr for the period ended Mar 2020, a fall of 15.1%. The 3 year sales cagr stood at -62.0%.
Net Profit reported at Rs 1.0 cr for period ended Mar 2021 vis-vis sales of Rs 0.0 cr for the period ended Mar 2020, rising 100.0%.
Company reported a poor Net Profit CAGR of -60.3% 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 34.0 cr for period ended Mar 2021 vis-vis Rs -6.0 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 105% on a 1 Year basis vis-vis a return of -18% over the last 3 Years. – The compounded sales growth on a TTM bassis is -13% vis-vis a compounded sales growth of -62% over the last 3 Years. – The compounded profit growth on a TTM basis is -70% vis-vis a compounded profit growth of -62% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 40.15% vis-vis 40.15% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free. – Stock is trading at 4.34 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -17.66% over past five years.
– has a low return on equity of 5.05% for last 3 years.
-Debtor days have increased from 36.13 to 44.97 days.
-‘s cost of borrowing seems high
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 170.07 and is trading at 190.0, thus bullish price action wise.
