Monday, March 4, 2024
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HomeStocksTechno-Fundamental Analysis – Magellanic Cloud

Techno-Fundamental Analysis – Magellanic Cloud

The Magellanic Cloud stock is currently trading above its 200-day Exponential Moving Average (EMA) by bouncing from the key support level, suggesting a potential investment opportunity due to impressive fundamentals. The stock boasts a Piotroski score of 5 and a G factor of 4, with a 9.5% decline from its all-time high.

Analysing the chart, it’s evident that the stock is near the 200-day EMA and a previous resistance level, potentially acting as a strong support. The expectation is that the stock might rebound from these levels, given its historical respect for these points. Notably, Foreign Institutional Investors have invested in this particular stock this September quarter.  

Piotroski score is a financial metric used to assess the overall financial health and strength of a company. Comprising nine criteria that focus on various aspects of a firm’s financial statements.

G factor – It is based on the recent quarterly growth of the company as well as the quality of the earnings.

Magellanic Cloud - Chart

Magellanic Cloud Ltd appears to be a promising investment opportunity, supported by a robust financial performance and a positive outlook for the upcoming quarter. The company has demonstrated impressive profit growth, achieving a Compound Annual Growth Rate (CAGR) of 75.6% over the last five years. This stellar performance is reflected in its Return on Equity (ROE) of 34.3% over the past three years, showcasing effective management and utilisation of shareholder funds. 

The firm has also maintained a healthy dividend payout of 25.8%, indicating a commitment to rewarding investors. Moreover, the reduction in working capital requirements from 53.2 days to 25.5 days underscores efficient operational management. Magellanic Cloud Ltd’s Return on Capital Employed (ROCE) is commendable at 31.2%, reflecting its ability to generate profitable returns from its capital investments.

In terms of financial stability, the company boasts a Debt-to-Equity ratio of 0.69, suggesting a conservative approach to leverage. The promoter holding stands at a substantial 58.6%, instilling confidence in the company’s leadership. 

Magellanic Cloud Ltd has shown robust sales growth, with a 3-year growth rate of 34.8% and a staggering 77.7% in the recent period. The Profit After Tax (PAT) of Rs 76.3 crore. 

Stock Performance

Examining the Magellanic Cloud stock performance, the one-year return is a steady 277%, reflecting positive momentum. Over three years, the stock has delivered multibagger returns of 2,352%, and the five-year return of 4,325% solidifies the company’s position as a formidable player in the market.

Read: Techno-Fundamental Analysis – Elecon Engineering

About the company

Magellanic Cloud Limited provides its IT services in software development, consulting and human resource business solutions i.e. listing employment vacancies and referring or placing applicants for employment. 

Learn: TechnoFunda Investing

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions. 
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