Mehabe score: 3 G Factor: 2 Piotski Score: 6 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 2 and Piotski score of 6.
Description
NBI Industrial Finance Company operates as a non banking financial company. It primarily engages investment in shares and securities and financial activity.Site:NBIFIN
Market Cap:
Rs 560 cr
Price:
2281.0
Trading pe:
52.7x
Book-value:
7,470/share
Div yield:
0.00 %
Earning yield:
1.78%
Face-value:
5.00/share
52week high:
3200.00
52week low:
1326.00
Technical Analysis
Stock trades at 2281.0, above its 50dma 2165.1. It also trades above its 200dma 1855.78. The stock remains bullish on techicals
The 52 week high is at 3200.00 and the 52week low is at 1326.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.31 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
– has a low return on equity of 0.78% for last 3 years.
Competition
– The industry trades at a mean P/E of 19.9x. SBI Cards trades at the industry’s max P/E of 100.52x. NBIFIN trades at a P/E of 52.7x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 7.0. NBIFIN has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 6.4%. The max 1- month return was given by Muthoot Finance: a return of 17.26 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.76 cr compared to Rs 10.14 cr for period ended Mar 2020, a fall of 92.5%
Operating Profits reported at Rs 0.41 cr for period ended Mar 2021 vis-vis 9.34 for period ended Mar 2020 .
Operating Margins contracted -3816.3 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.22 compared to Rs 0.53 for previous quarter ended Dec 2020 and Rs 37.94 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2.16 cr for period ended Mar 2021 vis-vis sales of Rs 14.38 cr for the period ended Mar 2020, a fall of 565.7%. The 3 year sales cagr stood at -27.8%.
Operating margins shrank to 45.37% for period ended Mar 2021 vis-vis 90.06% for period ended Mar 2020, contraction of 4469.0 bps.
Net Profit reported at Rs 1.61 cr for period ended Mar 2021 vis-vis sales of Rs 12.96 cr for the period ended Mar 2020, falling 705.0%.
Company reported a poor Net Profit CAGR of -25.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -1.31 cr for period ended Mar 2020
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 1.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 43% on a 1 Year basis vis-vis a return of 12% over the last 3 Years. – The compounded sales growth on a TTM bassis is 73% vis-vis a compounded sales growth of -48% over the last 3 Years. – The compounded profit growth on a TTM basis is 95% vis-vis a compounded profit growth of -46% over the last 3 Years.
Ratios
Conclusion
– is almost debt free.
-Stock is trading at 0.31 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
– has a low return on equity of 0.78% for last 3 years.
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 2165.1 and is trading at 2281.0 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
