In the present scenario, everyone being individuals, small businesses, large corporate houses, even the stock markets are negatively impacted by the outbreak of Covid-19 and lockdowns imposed to contain the spread of the virus. AI (Artificial Intelligence), AR (Augmented Reality) and VR (Virtual Reality) will be the tools which will be used to address rapidly evolving challenges and contribute to economic growth. Many companies from different sectors being technology, healthcare, manufacturing, and services sectors are integrating AI into its core operations and R&D for better and quick results, which results in an increase in the market share of artificial intelligence market globally. In 2018, the artificial intelligence market globally was valued at USD 24.9 billion and is expected to grow further and deliver a CAGR of over 46 per cent for 6 years period from 2019 to 2025.

Renalytix AI Plc – Offering Products for CKD (Chronic Kidney Disease), market driven by AI

Renalytix AI Plc (LON: RENX) is engaged in providing Artificial Intelligence backed kidney diagnostic services.

Financial Highlights – Increased Operating Expenses in the H1 FY2020 (31^st December 2019) Period


(Source: Interim Report, Company Website)
 
In the first half of the financial year 2020, the company generated revenue of USD 105 thousand with a gross profit of USD 85 thousand. Due to an increase in the administrative expenses, the group reported an operating loss of USD 4,463 thousand in H1 FY2020 versus an operating loss of USD 2,863 thousand in H1 FY2019. The reported loss for the period stood at USD 3,767 thousand in H1 FY2020 versus a reported loss of USD 2,517 thousand in H1 FY2019.

Share Price Performance

Daily Chart as of May 12^th, 2020, before the market close (Source: Refinitiv,Thomson Reuters)

Renalytix AI Plc shares were trading at GBX 340.00 at the time of writing before the market close (at 2:17 PM GMT+1) on 12th May 2020 and up by 2.41% versus the previous day closing price. Stock's 52 weeks High is GBX 370.00 and Low is GBX 167.65.

Conclusion
Renalytix AI Plc has made a lot of good progress in its product line and secured substantial financing to support its operations and secured significant agreement for its core product KidneyIntelX™ and implemented an exclusive license for FractalDx portfolio of technologies in the area of kidney transplant rejection. Despite the group generated revenue from the first time, it has shown a decline in financial performance in the first half of the financial year 2020. The Company needs to manage its operating costs more effectively to improve its profitability. Moreover,the Group is trading near its 52-week high, raising doubts at its upside potential at current prices. RENX has a solid pipeline and will be successfully integratingKidneyIntelX™ platform with Mount Sinai EMR.

On the basis of the above rationale, we have given a "Watch" recommendation at the current price of GBX 347.50 (as on 12^th May 2020, before the market close at 3:29 PM GMT+1), while we look for any upcoming catalysts in the near term.

Sensyne Health Plc – Improving Patient Care using Clinical AI

Sensyne Health Plc (LON: SENS) is a health care equipment & services company, engaged in the business of development and discovery of new medicines and refining patient care.

Recent News
On 5^th May 2020,Sensyne Health announced the launch of BPm-Health™, a monitoring system of blood pressure remotely during pregnancy to minimise contact and practice social distancing.

Financial Highlights – Decent Revenue Growth and Agreement with Bayer: H1 FY2020 (for the 6 months ended 31^st October 2019)
In the first half of the financial year 2020, driven by the agreement signed by the company with Bayer, the company’s revenue increased to GBP 392 thousand as against GBP 39 thousand in the H1 FY2019. The company reported an adjusted operating loss of GBP 7,364 thousand in the first half of the financial year 2020 as against an adjusted operating loss of GBP 5,112 thousand in the first half of the financial year 2019. In the first half of the financial year 2020, the company’s LBT (loss before tax) and LAT (loss after-tax) from continuing operations stood at GBP 9,894 thousand versus an LBT and LAT from continuing operations of GBP 10,334 thousand in H1 FY2019.

Share Price Performance

Daily Chart as of May 12^th, 2020, before the market close (Source: Refinitiv,Thomson Reuters)

Sensyne Health Plc shares were trading at GBX 45.80 at the time of writing before the market close (at 2:27 PM GMT+1) on 12th May 2020 and down by 0.43% versus the previous day closing price. Stock's 52 weeks High is GBX 169.00 and Low is GBX 35.30.

Valuation Methodology
 

Conclusion
The Company has shown improvement in financial performance in the first half of the financial year 2020. Both the top-line and the bottom-line performance have improved, with the improvement in the profitability, though it remained in the negative zone for the period. The Group is focusing on higher growth markets, through M&A and has achieved significant growth in the past. SENS remained a cash generative in the current financial period due to focused investment prioritisation, and tight financial management approach opted by the company.

Based on the decent growth prospects, we have given a “Hold” recommendation at the current price of GBX 44 (as on 12^th May 2020, before the market close at 3:15 PM GMT+1).

Panoply Holdings Plc – Improving People’s life with the use of Artificial Intelligence

Panoply Holdings Plc (LON: TPX) is a software & computer services company creating products and services to support its clients in achieving growth using digital technologies.

Trading Update and Measures taken to mitigate Covid-19 Impact
On 28^th April 2020, the Panoply Holdings released an update on the trading performance for the year ending 31^st March 2020. During the period, the revenue and adjusted EBITDA stood in line with the expectations of the market. Driven by new contract wins, the revenue in H2 FY2020 was around GBP 18 million. The group has cash reserves of around GBP 4.5 million with net debt of GBP 0.5 million as on 31^st March 2020. The company is focused on ensuring the health of its employee and clients and has enabled remote access for its staff. The Panoply continue to work effectively and providing full support to its clients for the period. The company has taken actions to reduce costs and preserve cash to tackle the uncertain times. The Group expect its revenue to be higher in H1 FY2021 versus prior period with higher profitability and more cash generative.

Share Price Performance

Daily Chart as of May 12^th, 2020, before the market close (Source: Refinitiv,Thomson Reuters)

Panoply Holdings Plc shares were trading at GBX 47 at the time of writing before the market close (at 2:36 PM GMT+1) on 12th May 2020 and down by 7.84% versus the previous day closing price. Stock's 52 weeks High is GBX 102.50 and Low is GBX 40.20.

Conclusion
The company is expecting an increase in financial performance in FY2020 and H1 FY2021 with improved profitability and higher cash generation. In the public services sector, the Group has completed two acquisitions which will strengthen its sector offering. In the software & computer services market, the company operates in a very dynamic environment. It is evolving and changing rapidly and becoming progressively competitive. Financial risks such as lack of liquidity could affect the operations of the Group. The company has notedthat political and regulatory changes may impose operating inefficiencies, while any severe recession or downturn could lead to reduced customer demand for its products and services.

Keeping in mind the risks faced by the company, investors are recommended to keep a “WATCH” on the stock at the closing price of GBX 51 (as on 11^th May 2020), while we look for any upcoming catalysts. 
 
*All forecasted figures and Peer information have been taken from Refinitiv, Thomson Reuters.

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