MEMBER'S LOGINX
| Login Failure | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
- Home
- Outlook Arena
- Aug 13, 2001 - Archies: E-card blues
Archies: E-card blues
Archies Greetings' bad patch continues. In 1QFY02 the gift and greeting cards major has reported a 38% decline in net profit to Rs 16 m. This is despite a 10% growth in topline during the period under review.
| (Rs m) | 1QFY01 | 1QFY02 | Change |
| Gross Sales | 113 | 125 | 10.3% |
| Other Income | 2 | 1 | -65.6% |
| Expenditure | 85 | 104 | 22.5% |
| Operating Profit (EBDIT) | 28 | 21 | -26.8% |
| Operating Profit Margin (%) | 24.8% | 16.4% | |
| Interest | 1 | 2 | 50.0% |
| Depreciation | 3 | 3 | 26.3% |
| Profit before Tax | 26 | 16 | -37.9% |
| Tax | 0 | 0 | - |
| Profit/(Loss) after Tax | 26 | 16 | -37.9% |
| Net profit margin (%) | 22.8% | 12.8% | |
| No. of Shares (eoy) (m) | 6.5 | 6.5 | |
| Diluted earnings per share* | 15.8 | 9.8 | |
| P/E ratio | 4.4 | ||
| * (annualised) |
In FY01, Archies had reported a 4% decline in topline and a significant 32% decline in net profit. One of the key reasons for Archies bad patch is that its turnover growth has not kept pace with expenditure, which continues to grow at a faster clip.
One of the reasons for mounting expenditure is that the company is expanding and upgrading its distribution network. During the June quarter, Archies added 8 franchisees, taking the total tally to 513 (including 27 company owned/managed outlets). The Company has also opened its branch offices at Calcutta, Noida & Chennai.
The Internet boom has also taken a toll on the company's growth. Since a lot of youngsters send cards through the net (e-cards), which are free, Archies business has suffered. Though Archies has spent a considerable amount to set up its own Internet presence, the cost free nature of the Internet means negligible returns, atleast for now. Added to this, Archies had diversified into cutting out music albums. After showing initial promise this business is now shorn of momentum.
At Rs 44 the stock trades at a P/e multiple of 4.4 times 1QFY02 annualised earnings. Though Archies has not done too well in the recent past, once its distribution upgradation and expansion plans consolidate, the company could again gain momentum as expenses stabilise. With some Internet majors already toying with the idea of charging for e-mail and other services, things may change on this front too. But these are all long term positives.
More Views on News
ARCHIES LTD 2018-19 Annual Report Analysis (Annual Result Update)
Sep 30, 2019 | Updated on Sep 30, 2019Here's an analysis of the annual report of ARCHIES LTD for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of ARCHIES LTD. Also includes updates on the valuation of ARCHIES LTD.
ARCHIES LTD Announces Quarterly Results (1QFY20); Net Profit Down 392.1% (Quarterly Result Update)
Aug 16, 2019 | Updated on Aug 16, 2019For the quarter ended June 2019, ARCHIES LTD has posted a net profit of Rs 23 m (down 392.1% YoY). Sales on the other hand came in at Rs 313 m (down 8.6% YoY). Read on for a complete analysis of ARCHIES LTD's quarterly results.
ARCHIES LTD Announces Quarterly Results (4QFY19); Net Profit Down 213.4% (Quarterly Result Update)
Jun 5, 2019 | Updated on Jun 5, 2019For the quarter ended March 2019, ARCHIES LTD has posted a net profit of Rs 3 m (down 213.4% YoY). Sales on the other hand came in at Rs 404 m (down 5.4% YoY). Read on for a complete analysis of ARCHIES LTD's quarterly results.
More Views on NewsMost Popular
A Critical Update on the Market (Fast Profits Daily)
Mar 30, 2021In this video, I'll tell you why I am recommending caution in the market at this time.
My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)
Mar 31, 2021A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.
My Stock Trading Strategy (Fast Profits Daily)
Mar 31, 2021In this video I'll show you exactly how I go about picking stocks for trading.
What You Need to Find Hundred Baggers (Profit Hunter)
Mar 30, 2021100 baggers of the last decade share this common trait. Here's how to use it to nail future multibaggers.
MoreOUR TOP 5 IDEAS
- India's Revival: A Once-in-a-generation Wealth Making Opportunity
- Are You Making One of These 15 Costly Mistakes While Investing. Learn more!
- Covid-19 Proof Multibagger Stocks - Download this FREE Report Now
- Free Report: The Secret to Increasing Your Trading Profits Daily!
- No Guessing, No Hunches, and No Missed Trends Ever! Join Us on YouTube Now.
ARCHIES SHARE PRICE
Apr 9, 2021 (Close)
TRACK ARCHIES
- Track your investment in ARCHIES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
- Add To MyStocks
MORE ON ARCHIES
ARCHIES 8-QTR ANALYSIS
COMPARE ARCHIES WITH
MARKET STATS
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
FREE NEWSLETTERS
PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
- Basics of Value Investing
- Benjamin Graham
- How to Invest in Gold
- How to Invest in Silver
- Best Stocks to Buy Today
- Warren Buffett - The Value Investor
- The Best Small-cap Stocks to Buy
- The Best Bluechip Stocks to Buy
- Your Ultimate Guide to Penny Stock Investing
- 10 Rules for Successful Long-Term Investing
- How to Invest in the Share Market
- Momentum Moves
FOLLOW
APP
Copyright © Equitymaster Agora Research Private Limited.
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
Equitymaster Agora Research Private Limited (Research Analyst) 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster requests your view! Post a comment on " Archies: E-card blues ". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!