Why is Sandesh Ltd. ?
1
Poor Management Efficiency with a low ROE of 9.98%
- The company has been able to generate a Return on Equity (avg) of 9.98% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate -5.40% of over the last 5 years
3
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -14.56% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Sandesh for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sandesh
-14.56%
-0.39
36.95%
Sensex
2.27%
0.18
12.28%
Quality key factors
Factor
Value
Sales Growth (5y)
2.76%
EBIT Growth (5y)
-5.40%
EBIT to Interest (avg)
54.85
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.63
Sales to Capital Employed (avg)
0.28
Tax Ratio
21.79%
Dividend Payout Ratio
3.73%
Pledged Shares
0
Institutional Holding
0.11%
ROCE (avg)
9.73%
ROE (avg)
9.98%
Valuation Key Factors 
Factor
Value
P/E Ratio
6
Industry P/E
7
Price to Book Value
0.50
EV to EBIT
-3.72
EV to EBITDA
-3.21
EV to Capital Employed
-0.33
EV to Sales
-0.58
PEG Ratio
NA
Dividend Yield
0.27%
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
3.53%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
17What is working for the Company
PAT(Q)
At Rs 40.30 cr has Grown at 223.3% (vs previous 4Q average
PBDIT(Q)
Highest at Rs 19.86 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 25.76%
PBT LESS OI(Q)
Highest at Rs 17.96 cr.
-4What is not working for the Company
ROCE(HY)
Lowest at 3.64%
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.26 times
NON-OPERATING INCOME(Q)
is 64.36 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Sandesh
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 17.96 cr has Grown at 619.1% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -3.46 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 40.30 cr has Grown at 223.3% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 12.47 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 19.86 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 25.76%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 17.96 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Sandesh
Non Operating Income - Quarterly
is 64.36 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Debtors Turnover Ratio- Half Yearly
Lowest at 5.26 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






