Mehabe score: 2 G Factor: 3 Piotski Score: 7 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 3 and Piotski score of 7.
Description
Neil Industries is a Non Banking Finance Company(NBFC) registered with Reserve bank of India (RBI) engaged in providing loans for business or Capacity expansion, Working Capital Loans, Loans for Purchase of Equipment and machinery, Term Loans against Property, Loans for Purchase of Commerical property and Other Finance services.Site:539016
Market Cap:
Rs 12.4 cr
Price:
6.35
Trading pe:
14.8x
Book-value:
28.5/share
Div yield:
0.00 %
Earning yield:
10.45%
Face-value:
10.0/share
52week high:
29.25
52week low:
4.78
Technical Analysis
Stock trades at 6.35, below its 50dma 7.21 and below its 200dma 11.88. The stock remains bearish on technicals
The 52 week high is at 29.25 and the 52week low is at 4.78
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.22 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 1.18% over past five years.
-Promoter holding is low: 1.88%
– has a low return on equity of 1.89% for last 3 years.
Competition
– The industry trades at a mean P/E of 22.4x. SBI Cards trades at the industry’s max P/E of 92.94x. 539016 trades at a P/E of 14.8x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 7.0. 539016 has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 0.2%. The max 1- month return was given by Muthoot Finance: a return of 19.35 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.7 cr compared to Rs 0.71 cr for period ended Mar 2020, a fall of 1.4%
Company reported operating profit of Rs 0.24 cr for period ended Mar 2021, operating profit margin at 34.3 %.
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 -0.17 compared to Rs 0.22 for previous quarter ended Dec 2020 and Rs -0.24 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2.78 cr for period ended TTM vis-vis sales of Rs 6.86 cr for the period ended Mar 2020, a fall of 146.8%. The 3 year sales cagr stood at -46.6%.
Operating margins expanded to 71.94% for period ended TTM vis-vis 22.45% for period ended Mar 2020, expansion of 4949.0 bps.
Net Profit reported at Rs 0.97 cr for period ended TTM vis-vis sales of Rs 1.16 cr for the period ended Mar 2020, falling 19.6%.
Company reported a poor Net Profit CAGR of -5.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 2.0% compared to 2.0% over the last 3 Years. – The stock has given a return of -66% on a 1 Year basis vis-vis a return of -31% over the last 3 Years. – The compounded sales growth on a TTM bassis is -60% vis-vis a compounded sales growth of -21% over the last 3 Years. – The compounded profit growth on a TTM basis is -33% vis-vis a compounded profit growth of 28% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 98.12% vis-vis 98.12% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.22 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 1.18% over past five years.
-Promoter holding is low: 1.88%
– has a low return on equity of 1.89% 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 7.21 and is trading at 6.35. 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
