Adveritas Limited

AV1 Details

Adveritas Limited (ASX: AV1) is engaged in providing innovative software solutions that leverage big data to drive business performance.

Result Performance (FY21 Ended 30 June 2021)

• Annualized revenue from enterprise client wins for the full year ending June 2021 at $1 million, an increase of 111% over the six months since Dec.2020.
• Freemium subscribers increased by ~400% to around 2,690, whereas the freemium conversion rate increased by 15% over the year.
• The company stayed well-capitalized with cash balance of $3.2 million and no debt at the end of the year.

Financial Summary (Source: Company Report) 

Outlook:

The company is witnessing a good start to FY22 with increased new enterprise clients and a strong renewal rate. Annualized revenue as of 31 August 2021 increased by 41% from 30 June 2021. The company is well -positioned to scale-up its operations underpinned by new enterprise client wins. In August, the company signed up online sports betting company Betbull part of global gaming giant Wynn Interactive, and next- generation e-commerce platform CARS24. Several multi-billion-dollar unicorns are currently trialing TrafficGuard, which on getting converted would further support a rapid scale up to the company’s annualized revenue in FY22.

Key Risks:

The company is exposed to market risk, credit risk, liquidity risk, interest rate risk, currency risk, and other price risks. Also, the company is exposed to ever-changing technological upgradation and innovations risk.

Technical Analysis

Daily Price Chart

Source: REFINITIV, Note: Purple color line reflects Relative Strength Index (14-Period)

Stock Recommendation:

The stock has witnessed a decline of ~36.67% in 6 months and a decline of ~20.83% in the period of one year. It has made a 52-week low and high of $0.091 and $0.225, respectively.

Considering the aforesaid facts, we give a “Speculative Buy” recommendation on the stock at the current market price of $0.095 per share, down 5.001% as of 9^th September 2021.

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

Note 2: Investment decisions 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 analysis has been achieved and subject to the factors discussed above alongside support levels provided.

Technical Indicators Defined:-

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.

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