Mehabe score: 2 G Factor: 1 Piotski Score: 3 The stock has a rating OBSERVE & 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 1 and Piotski score of 3. Site:VCU Main Symbol:VCU
Stock trades at 17.0, above its 50dma 11.16. It also trades above its 200dma 8.06. The stock remains bullish on techicals
The 52 week high is at 17.30 and the 52week low is at 4.85
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.96 times its book value
Weakness
– The company has delivered a poor sales growth of 11.93% over past five years.
-Promoter holding is low: 19.74%
– has a low return on equity of 0.06% for last 3 years.
– has high debtors of 390.24 days.
Competition
– The industry trades at a mean P/E of 40.7x. Adani Enterp. trades at the industry’s max P/E of 166.68x. VCU trades at a P/E of 73.4x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. VCU has a G-Factor of 1 and Piotski scoreof 3.
– Average 1 month return for industry is 11.3%. The max 1- month return was given by VCU Data Managem: a return of 71.01 %
Quarterly Results
.
Company reported negative operating profit of Rs -0.17 cr for period ended Dec 2021. For same period last year, operating profit was -0.55.
The EPS for quarter ended Dec 2021 is Rs 0.07 compared to Rs 0.2 for previous quarter ended Sep 2021 and Rs 0.03 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.0 cr for period ended TTM vis-vis sales of Rs 1.88 cr for the period ended Mar 2021, a fall of 0%.
Net Profit reported at Rs 0.43 cr for period ended TTM vis-vis sales of Rs -0.15 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 172% on a 1 Year basis vis-vis a return of 49% over the last 3 Years. – The compounded sales growth on a TTM bassis is -100% vis-vis a compounded sales growth of -53% over the last 3 Years. – The compounded profit growth on a TTM basis is 151% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 80.26% vis-vis 80.26% for Sep 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.96 times its book value – The company has delivered a poor sales growth of 11.93% over past five years.
-Promoter holding is low: 19.74%
– has a low return on equity of 0.06% for last 3 years.
– has high debtors of 390.24 days.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 11.16 and is trading at 17.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
