Mehabe score: 4 G Factor: 3 Piotski Score: 7 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 7.
Description
Dhanvarsha Finvest Limited provides financing services. The Company offers home, personal, property, educational, term, and business loans, as well as insurance and finance brokerage services.Site:540268
Market Cap:
Rs 1,212 cr
Price:
791.0
Trading pe:
2693.0x
Book-value:
30.6/share
Div yield:
0.01 %
Earning yield:
0.42%
Face-value:
10.0/share
52week high:
804.00
52week low:
60.20
Technical Analysis
Stock trades at 791.0, above its 50dma 671.88. It also trades above its 200dma 454.85. The stock remains bullish on techicals
The 52 week high is at 804.00 and the 52week low is at 60.20
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Stock is trading at 25.80 times its book value
– has low interest coverage ratio.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.1.95 Cr.
Competition
– The industry trades at a mean P/E of 19.1x. Dhanvarsha Finv. trades at the industry’s max P/E of 2692.92x. 540268 trades at a P/E of 2693.0x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 7.0. 540268 has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 10.2%. The max 1- month return was given by Muthoot Finance: a return of 23.72 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 7.28 cr compared to Rs 5.71 cr for period ended Mar 2020, a rise of 27.5%
Operating Profits reported at Rs 1.69 cr for period ended Mar 2021 vis-vis 1.02 for period ended Mar 2020 .
Operating Margins expanded 535.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.37 compared to Rs -0.44 for previous quarter ended Dec 2020 and Rs 0.26 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 23.95 cr for period ended Mar 2021 vis-vis sales of Rs 19.1 cr for the period ended Mar 2020, a healthy growth of 20.3%. The 3 year sales cagr stood at 27.4%.
Operating margins shrank to 27.93% for period ended Mar 2021 vis-vis 39.63% for period ended Mar 2020, contraction of 1170.0 bps.
Net Profit reported at Rs 0.68 cr for period ended Mar 2021 vis-vis sales of Rs 4.1 cr for the period ended Mar 2020, falling 502.9%.
Company reported a poor Net Profit CAGR of -45.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 1164% on a 1 Year basis vis-vis a return of 180% over the last 3 Years. – The compounded sales growth on a TTM bassis is 22% vis-vis a compounded sales growth of 148% over the last 3 Years. – The compounded profit growth on a TTM basis is -92% vis-vis a compounded profit growth of 641% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 1.86% vis-vis 0.0% for Dec 2020 – Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 36.29% vis-vis 38.64% for Dec 2020
Conclusion
– – Stock is trading at 25.80 times its book value
– has low interest coverage ratio.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.1.95 Cr.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 671.88 and is trading at 791.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
