Mehabe score: 2 G Factor: 4 Piotski Score: 3 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 4 and Piotski score of 3.
Description
Unistar Multimedia Ltd was incorporated with the name “Kumbh Finance Limited” in 1991. The Company was traditionally engaged in the business of dealing in shares and securities, financiers etc.
It has restructured its activities and entered into the media business. The Company changed its name to “Unistar Multimedia Limited”. The company is in the business of providing content to various TV channels and preparing TV serials, own music albums, making films, event management etc. [1] Site:UNISTRMU Main Symbol:UNISTRMU
Stock trades at 14.0, below its 50dma 14.27. However it is trading above its 200dma 12.02. 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 14.27.
The 52 week high is at 17.75 and the 52week low is at 3.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Promoter holding is low: 19.06%
– has a low return on equity of 1.19% for last 3 years.
-Earnings include an other income of Rs.0.34 Cr.
Competition
– The industry trades at a mean P/E of 40.6x. Saregama India trades at the industry’s max P/E of 68.0x. UNISTRMU trades at a P/E of 14.7x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 8.0. UNISTRMU has a G-Factor of 4 and Piotski scoreof 3.
– Average 1 month return for industry is 12.5%. The max 1- month return was given by Inox Leisure: a return of 22.4 %
Quarterly Results
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Company reported negative operating profit of Rs -0.04 cr for period ended Mar 2022. For same period last year, operating profit was -0.03.
The EPS for quarter ended Mar 2022 is Rs 0.14 compared to Rs 0.21 for previous quarter ended Dec 2021 and Rs -34.18 for Mar 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1.78 cr for period ended Mar 2022 vis-vis sales of Rs 0.0 cr for the period ended Mar 2021, a growth of 0%. The 3 year sales cagr stood at 346.5%.
Net Profit reported at Rs 0.95 cr for period ended Mar 2022 vis-vis sales of Rs -34.19 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2022 vis-vis Rs -0.16 cr for period ended Mar 2021
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 11.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 264% on a 1 Year basis vis-vis a return of 71% over the last 3 Years. – The compounded sales growth on a TTM bassis is % vis-vis a compounded sales growth of 346% over the last 3 Years. – The compounded profit growth on a TTM basis is 9600% vis-vis a compounded profit growth of 223% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 80.94% vis-vis 80.84% for Sep 2021
Conclusion
– is almost debt free. – Promoter holding is low: 19.06%
– has a low return on equity of 1.19% for last 3 years.
-Earnings include an other income of Rs.0.34 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 14.27 and is trading at 14.0. 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
