Mehabe score: 3 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
Smart Finsec is enaged in the business of Whole Income Generated from Sale of Bonds/ shares , Rent received& Interest Income.Site:539494
Market Cap:
Rs 16.1 cr
Price:
53.6
Trading pe:
x
Book-value:
24.1/share
Div yield:
0.00 %
Earning yield:
-1.43%
Face-value:
10.0/share
52week high:
56.40
52week low:
45.55
Technical Analysis
Stock trades at 53.6, below its 50dma 55.81. However it is trading above its 200dma 46.9. 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 55.81.
The 52 week high is at 56.40 and the 52week low is at 45.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 6.01% for last 3 years.
Competition
– The industry trades at a mean P/E of 22.3x. SBI Cards trades at the industry’s max P/E of 92.89x. 539494 trades at a P/E of x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 7.0. 539494 has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 3.3%. The max 1- month return was given by Muthoot Finance: a return of 15.42 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 4.94 cr compared to Rs 6.63 cr for period ended Mar 2020, a fall of 25.5%
Company reported operating profit of Rs 0.46 cr for period ended Mar 2021, operating profit margin at 9.3 %.
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 1.23 compared to Rs -1.07 for previous quarter ended Dec 2020 and Rs -0.83 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 23.22 cr for period ended Mar 2021 vis-vis sales of Rs 9.64 cr for the period ended Mar 2020, a healthy growth of 58.5%. The 3 year sales cagr stood at 14.3%.
Operating margins shrank to 2.58% for period ended Mar 2021 vis-vis 5.81% for period ended Mar 2020, contraction of 323.0 bps.
Net Profit reported at Rs 0.45 cr for period ended Mar 2021 vis-vis sales of Rs 0.34 cr for the period ended Mar 2020, rising 24.4%.
Company reported a poor Net Profit CAGR of -19.4% 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 -0.79 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 4.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 18% on a 1 Year basis vis-vis a return of -1% over the last 3 Years. – The compounded sales growth on a TTM bassis is 523% vis-vis a compounded sales growth of 95% over the last 3 Years. – The compounded profit growth on a TTM basis is -117% vis-vis a compounded profit growth of -33% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 27.87% vis-vis 27.87% for Dec 2020
Conclusion
– is almost debt free.
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 6.01% for last 3 years.
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 below its 50 DMA 55.81 and is trading at 53.6. Shows a near term lack of buying interest.
