Mehabe score: 2 G Factor: 5 Piotski Score: 7 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 5 and Piotski score of 7.
Description
Suchitra Finance & Trading Company is engaged solely in financial & investment activity segment and all activities of the Company revolve around this activity.Site:538714
Market Cap:
Rs 50.3 cr
Price:
54.0
Trading pe:
8.49x
Book-value:
106/share
Div yield:
0.00 %
Earning yield:
18.98%
Face-value:
10.0/share
52week high:
64.45
52week low:
25.05
Technical Analysis
Stock trades at 54.0, above its 50dma 42.02. It also trades above its 200dma 44.44. The stock remains bullish on techicals
The 52 week high is at 64.45 and the 52week low is at 25.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.51 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 8.70% for last 3 years.
Competition
– The industry trades at a mean P/E of 24.2x. SBI Cards trades at the industry’s max P/E of 93.76x. 538714 trades at a P/E of 8.49x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 7.0. 538714 has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 4.4%. The max 1- month return was given by Suchitra Finance: a return of 45.75 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 5.29 cr compared to Rs 5.23 cr for period ended Mar 2020, a rise of 1.1%
Operating Profits reported at Rs 4.55 cr for period ended Mar 2021 vis-vis 5.07 for period ended Mar 2020 .
Operating Margins contracted -1092.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -2.54 compared to Rs 2.66 for previous quarter ended Dec 2020 and Rs 2.52 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 21.86 cr for period ended Mar 2021 vis-vis sales of Rs 21.61 cr for the period ended Mar 2020, a growth of 1.1%. The 3 year sales cagr stood at -3.5%.
Operating margins shrank to 93.96% for period ended Mar 2021 vis-vis 96.99% for period ended Mar 2020, contraction of 303.0 bps.
Net Profit reported at Rs 5.93 cr for period ended Mar 2021 vis-vis sales of Rs 9.06 cr for the period ended Mar 2020, falling 52.8%.
Company reported a poor Net Profit CAGR of -6.9% 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 stock has given a return of -8% 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 1% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is -35% vis-vis a compounded profit growth of -7% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 36.92% vis-vis 36.92% for Dec 2020
Conclusion
– Stock is trading at 0.51 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 8.70% 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 above its 50 DMA 42.02 and is trading at 54.0, thus bullish price action wise.
