Our 33th company in the Series of Best Stocks to Buy in India for Short term 2022 is Aarvi Encon Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Aarvi Encon Limited is engaged in providing technical manpower outsourcing services across various industries.It’s services include IT staffing, manpower outsourcing, project management, construction supervision, procurement assistance etc .
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹166cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 15.85
Sector PE Ratio: 26.98
PE Ratio of this company is low than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 1.95
Sector PB Ratio : 7.67
PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 1.34%
Sector Dividend Yield : 1.87%
Dividend Yield of this company is low than Sector. Dividend of this is Average than the peers of this company.
ROE (Return on equity) and ROCE (Return on capital equity) is Below Average.
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 ,Company have 34.96Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
Debt Level: AARVI has more cash than its total debt.
Reducing Debt: AARVI’s debt to equity ratio has reduced from 38.7% to 9.2% over the past 5 years.
Debt Coverage: AARVI’s debt is well covered by operating cash flow (77.8%).
Interest Coverage: AARVI earns more interest than it pays, so coverage of interest payments is not a concern.
Share Holding Pattern
|Promotor Holding||Foreign Institution|
|Other Domestic Institutions||Retail & Others|
Above table showing there is no big change in Promotor Holding which is 73.47% in June 2021. FIIs invested in June 2022 with 0.00% and retail investor is 26.53% .
|Now We’ll check the return of the company, This company started from Rs. 48 at 07 Jan 2015. This company given 89.62% returns in last 1 year from 2021 to 24 May 2022.|
Investment Checklist for Aarvi Encon Ltd.
- The company is currently profitable
Does not have a meaningful market cap (₹2B)
Earnings have grown by 12.3% per year over past 5 years
Debt level is low and not considered a risk
Share price has been stable over the past 3 months
The company’s earnings are high quality
Profit margins decreased but not substantially
At least 3 years of financial data is available
Shareholders have not been meaningfully diluted in the past year or recently listed
Revenue is meaningful (₹3B)
AARVI does not have negative shareholders equity.
According to its historical performance we can predict stock target.
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
Hope you liked Our 33th company in the Series of Best stocks to buy in India for short term 2022. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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