Mehabe score: 5 G Factor: 5 Piotski Score: 4 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 5 and Piotski score of 4.
Description
Industrial & Prudential Invest. Co. is a Non-Banking Finance Company (NBFC) engaged in Non-Banking Financial activities including the business of acquiring, selling and maintaining investments.Site:501298
Market Cap:
Rs 295 cr
Price:
1759.0
Trading pe:
14.2x
Book-value:
3,068/share
Div yield:
1.42 %
Earning yield:
8.29%
Face-value:
10.0/share
52week high:
1670.00
52week low:
790.30
Technical Analysis
Stock trades at 1759.0, above its 50dma 1259.2. It also trades above its 200dma 1099.53. The stock remains bullish on techicals
The 52 week high is at 1670.00 and the 52week low is at 790.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.57 times its book value
– has been maintaining a healthy dividend payout of 20.98%
-Promoter holding has increased by 2.28% over last quarter.
Weakness
– The company has delivered a poor sales growth of -15.93% over past five years.
– has a low return on equity of 7.72% for last 3 years.
-Earnings include an other income of Rs.20.07 Cr.
Competition
– The industry trades at a mean P/E of 19.7x. SBI Cards trades at the industry’s max P/E of 102.93x. 501298 trades at a P/E of 14.2x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 7.0. 501298 has a G-Factor of 5 and Piotski scoreof 4.
– Average 1 month return for industry is 14.1%. The max 1- month return was given by Indl.& Prud.Inv.: a return of 49.67 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.75 cr compared to Rs 0.24 cr for period ended Mar 2020, a rise of 212.5%
Company reported operating profit of Rs 0.61 cr for period ended Mar 2021, operating profit margin at 81.3 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 44.81 compared to Rs 69.39 for previous quarter ended Dec 2020 and Rs 11.4 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 8.0 cr for period ended Mar 2021 vis-vis sales of Rs 3.0 cr for the period ended Mar 2020, a healthy growth of 62.5%. The 3 year sales cagr stood at 17.0%.
Operating margins expanded to 91.0% for period ended Mar 2021 vis-vis 9.0% for period ended Mar 2020, expansion of 8200.0 bps.
Net Profit reported at Rs 26.0 cr for period ended Mar 2021 vis-vis sales of Rs 24.0 cr for the period ended Mar 2020, rising 7.7%.
Company recorded a Net Profit CAGR of 9.1% 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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 7.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 114% on a 1 Year basis vis-vis a return of 13% over the last 3 Years. – The compounded sales growth on a TTM bassis is 32% vis-vis a compounded sales growth of -26% over the last 3 Years. – The compounded profit growth on a TTM basis is -9% vis-vis a compounded profit growth of 1% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 31.75% vis-vis 34.03% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.57 times its book value
– has been maintaining a healthy dividend payout of 20.98%
-Promoter holding has increased by 2.28% over last quarter. – The company has delivered a poor sales growth of -15.93% over past five years.
– has a low return on equity of 7.72% for last 3 years.
-Earnings include an other income of Rs.20.07 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 1259.2 and is trading at 1759.0 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
