Totally PLC (LON: TLY)

Totally PLC is an FTSE AIM All-Share index-listed healthcare service provider in the UK and Ireland. It works in partnership with the NHS (“National Health Service) and other providers to deliver healthcare services.

The ex-dividend date for the interim dividend was 3 February 2022, while the payment date was 25 February 2022.

Investment Rationale – SELL at GBX 36.00

• Macroeconomic Risk: The Russian invasion in Ukraine has already jolted the market, while the slow retail growth and battered consumer spending in the UK amid rising fuel costs can keep the equity market under pressure.
• Profit Booking Opportunity: The stock price witnessed a decent rally and managed to breach the resistance 1 levels provided in the last coverage. Thus, it would be a decent opportunity to book profit for the investors.
• Weak Liquidity Levels: In terms of liquidity, the current ratio and quick ratio of TLY remained lower than the respective industry median, indicating the Company had less capability of paying short term obligations when compared with the industry.
• Technical Indicator: From a technical standpoint, the 14-day RSI (~62.98) is approaching an overbought territory.

H1 FY22 Financial & Operational Highlights (for the six months ended 30 September 2021, as of 15 November 2021)

(Source: Company Filings)

• Top-line Growth: During H1 FY22, revenue increased by 13.78% to £61.57 million as compared to £54.11 million in H1 FY21.
• Strong Cash Position: TLY reported cash and cash equivalent of £18.3 million in H1 FY22 (£12.28 million in H1 FY21).

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Valuation Methodology: Price/Earnings Approach (FY22) (Illustrative)

Conclusion

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Considering the decent profit booking opportunity, low liquidity levels, and unfavorable valuation as done using the above method, we have given a "Sell" recommendation on Totally PLC at the current market price of GBX 36.00 (as of 10 March 2022 at 08:02 AM GMT).

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decision should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Note 3: Dividend Yield may vary as per the stock price movement.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

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