Mehabe score: 1 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
Stephanotis Finance is engaged in the business of Non-Banking Financial Corporation Services.(Source : 201903 Annual Report Page No:11)Site:512215
Market Cap:
Rs 17.2 cr
Price:
26.6
Trading pe:
x
Book-value:
39.0/share
Div yield:
0.00 %
Earning yield:
-5.72%
Face-value:
10.0/share
52week high:
33.00
52week low:
18.55
Technical Analysis
Stock trades at 26.6, below its 50dma 28.06 and below its 200dma 40.83. The stock remains bearish on technicals
The 52 week high is at 33.00 and the 52week low is at 18.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.68 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -20.70% over past five years.
– has a low return on equity of 1.35% for last 3 years.
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. 512215 trades at a P/E of x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 7.0. 512215 has a G-Factor of 5 and Piotski scoreof 4.
– Average 1 month return for industry is 2.8%. 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 0.18 cr compared to Rs 0.15 cr for period ended Mar 2020, a rise of 20.0%
Company reported negative operating profit of Rs -0.01 cr for period ended Mar 2021. For same period last year, operating profit was -1.05
The EPS for Mar 2021 was Rs -0.03 compared to Rs 0.0 for previous quarter ended Dec 2020 and Rs -1.4 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.74 cr for period ended Mar 2021 vis-vis sales of Rs 1.85 cr for the period ended Mar 2020, a fall of 150.0%. The 3 year sales cagr stood at -58.8%.
Operating margins shrank to -1.35% for period ended Mar 2021 vis-vis 9.19% for period ended Mar 2020, contraction of 1054.0 bps.
Net Profit reported at Rs -0.02 cr for period ended Mar 2021 vis-vis sales of Rs 0.12 cr for the period ended Mar 2020, falling 0%.
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 -0.07 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of -15% 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 -60% vis-vis a compounded sales growth of -59% over the last 3 Years. – The compounded profit growth on a TTM basis is -117% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 27.54% vis-vis 27.54% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.68 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -20.70% over past five years.
– has a low return on equity of 1.35% 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 28.06 and is trading at 26.6. 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
