Mehabe score: 2 G Factor: 4 Piotski Score: 5 The stock has a rating 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 4 and Piotski score of 5.
Description
Baid Leasing & Finance Company is engaged in Business of Vehicle Financing and Loan against Property.Site:511724
Market Cap:
Rs 50.7 cr
Price:
42.2
Trading pe:
7.19x
Book-value:
115/share
Div yield:
0.00 %
Earning yield:
14.79%
Face-value:
10.0/share
52week high:
49.20
52week low:
21.20
Technical Analysis
Stock trades at 42.2, above its 50dma 31.32. It also trades above its 200dma 32.7. The stock remains bullish on techicals
The 52 week high is at 49.20 and the 52week low is at 21.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.37 times its book value
– has delivered good profit growth of 44.42% CAGR over last 5 years
Weakness
– has low interest coverage ratio.
-Promoter holding is low: 21.56%
– has a low return on equity of 13.27% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 21.2x. SBI Cards trades at the industry’s max P/E of 93.25x. 511724 trades at a P/E of 7.19x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 7.0. 511724 has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 10.5%. The max 1- month return was given by Baid Leasing: a return of 61.38 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 12.47 cr compared to Rs 13.5 cr for period ended Mar 2020, a fall of 7.6%
Operating Profits reported at Rs 8.05 cr for period ended Mar 2021 vis-vis 8.4 for period ended Mar 2020 .
Operating Margins expanded 233.3 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.43 compared to Rs 1.3 for previous quarter ended Dec 2020 and Rs 1.07 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 53.46 cr for period ended Mar 2021 vis-vis sales of Rs 62.59 cr for the period ended Mar 2020, a fall of 17.1%. The 3 year sales cagr stood at 9.3%.
Operating margins shrank to 63.58% for period ended Mar 2021 vis-vis 66.42% for period ended Mar 2020, contraction of 284.0 bps.
Net Profit reported at Rs 7.48 cr for period ended Mar 2021 vis-vis sales of Rs 7.61 cr for the period ended Mar 2020, falling 1.7%.
Company recorded a Net Profit CAGR of 9.7% 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 92% on a 1 Year basis vis-vis a return of -33% over the last 3 Years. – The compounded sales growth on a TTM bassis is -11% vis-vis a compounded sales growth of 30% over the last 3 Years. – The compounded profit growth on a TTM basis is -5% vis-vis a compounded profit growth of 24% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 78.44% vis-vis 78.44% for Dec 2020
Conclusion
– has reduced debt.
-Stock is trading at 0.37 times its book value
– has delivered good profit growth of 44.42% CAGR over last 5 years – has low interest coverage ratio.
-Promoter holding is low: 21.56%
– has a low return on equity of 13.27% for last 3 years.
-‘s cost of borrowing seems high
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 31.32 and is trading at 42.2, thus bullish price action wise.
