Mehabe score: 2 G Factor: 0 Piotski Score: 4 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 0 and Piotski score of 4.
Description
Vakrangee is engaged in providing diverse solutions, activities in E-governance, E-commerce, White Label ATM, Financial Services (Including Banking) and Logistics sector, including bullion and jewellery, through its Vakrangee Kendra (on B2B and B2C basis) with special competencies in handling massive, multi-state, and e-governance enrollment projects, data digitization, software and license.(Source : 202003 Annual Report Page No:205)Site:VAKRANGEE
Market Cap:
Rs 5,064 cr
Price:
47.8
Trading pe:
71.8x
Book-value:
24.9/share
Div yield:
0.52 %
Earning yield:
1.65%
Face-value:
1.00/share
52week high:
69.85
52week low:
24.40
Technical Analysis
Stock trades at 47.8, below its 50dma 49.41. However it is trading above its 200dma 47.14. 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 49.41.
The 52 week high is at 69.85 and the 52week low is at 24.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 48.65%
Weakness
– The company has delivered a poor sales growth of -24.43% over past five years.
– has a low return on equity of 10.24% for last 3 years.
-Earnings include an other income of Rs.71.36 Cr.
– has high debtors of 729.15 days.
Competition
– The industry trades at a mean P/E of 36.1x. Vakrangee trades at the industry’s max P/E of 71.81x. VAKRANGEE trades at a P/E of 71.8x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 5.0. VAKRANGEE has a G-Factor of 0 and Piotski scoreof 4.
– Average 1 month return for industry is 26.6%. The max 1- month return was given by Ajel: a return of 84.06 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 102.0 cr compared to Rs 207.0 cr for period ended Mar 2020, a fall of 50.7%
Operating Profits reported at Rs 12.0 cr for period ended Mar 2021 vis-vis 15.0 for period ended Mar 2020 .
Operating Margins expanded 451.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.2 compared to Rs 0.16 for previous quarter ended Dec 2020 and Rs 0.29 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 314.0 cr for period ended Mar 2021 vis-vis sales of Rs 685.0 cr for the period ended Mar 2020, a fall of 118.2%. The 3 year sales cagr stood at -63.6%.
Operating margins expanded to 9.0% for period ended Mar 2021 vis-vis 3.0% for period ended Mar 2020, expansion of 600.0 bps.
Net Profit reported at Rs 63.0 cr for period ended Mar 2021 vis-vis sales of Rs 71.0 cr for the period ended Mar 2020, falling 12.7%.
Company reported a poor Net Profit CAGR of -54.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -51.0 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 3.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 29% on a 1 Year basis vis-vis a return of 0% over the last 3 Years. – The compounded sales growth on a TTM bassis is -28% vis-vis a compounded sales growth of -44% over the last 3 Years. – The compounded profit growth on a TTM basis is 57% vis-vis a compounded profit growth of -50% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 9.68% vis-vis 9.97% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 41.36% vis-vis 41.08% for Dec 2020
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 48.65% – The company has delivered a poor sales growth of -24.43% over past five years.
– has a low return on equity of 10.24% for last 3 years.
-Earnings include an other income of Rs.71.36 Cr.
– has high debtors of 729.15 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 49.41 and is trading at 47.8. 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
