Mehabe score: 5 G Factor: 5 Piotski Score: 4 The stock has a rating SELL. 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
Bombay Oxygen Investment is engaged in the business of NBFC (Investment Company).Site:509470
Market Cap:
Rs 219 cr
Price:
14625.0
Trading pe:
3.76x
Book-value:
11,573/share
Div yield:
0.07 %
Earning yield:
13.35%
Face-value:
100/share
52week high:
25500.00
52week low:
8511.60
Technical Analysis
Stock trades at 14625.0, below its 50dma 15317.32. However it is trading above its 200dma 12896.64. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 15317.32.
The 52 week high is at 25500.00 and the 52week low is at 8511.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 54.55% CAGR over last 5 years
Weakness
– has a low return on equity of 7.76% for last 3 years.
Competition
– The industry trades at a mean P/E of 21.1x. SBI Cards trades at the industry’s max P/E of 93.26x. 509470 trades at a P/E of 3.76x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 7.0. 509470 has a G-Factor of 5 and Piotski scoreof 4.
– Average 1 month return for industry is 1.7%. The max 1- month return was given by Muthoot Finance: a return of 19.09 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 11.19 cr compared to Rs 0.44 cr for period ended Mar 2020, a rise of 2443.2%
Company reported operating profit of Rs 10.72 cr for period ended Mar 2021, operating profit margin at 95.8 %.
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 658.67 compared to Rs 2112.67 for previous quarter ended Dec 2020 and Rs -1656.67 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 61.0 cr for period ended Mar 2021 vis-vis sales of Rs 2.0 cr for the period ended Mar 2020, a healthy growth of 96.7%. The 3 year sales cagr stood at 212.4%.
Operating margins expanded to 97.0% for period ended Mar 2021 vis-vis -900.0% for period ended Mar 2020, expansion of 99700.0 bps.
Net Profit reported at Rs 58.0 cr for period ended Mar 2021 vis-vis sales of Rs -20.0 cr for the period ended Mar 2020, rising 134.5%.
Company recorded a healthy Net Profit CAGR of 287.1% 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 -2.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 34.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 33% on a 1 Year basis vis-vis a return of 18% over the last 3 Years. – The compounded sales growth on a TTM bassis is 2366% vis-vis a compounded sales growth of 239% over the last 3 Years. – The compounded profit growth on a TTM basis is 384% vis-vis a compounded profit growth of 175% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 26.65% vis-vis 26.65% for Dec 2020
Conclusion
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 54.55% CAGR over last 5 years – has a low return on equity of 7.76% for last 3 years.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 15317.32 and is trading at 14625.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
