Mehabe score: 6 G Factor: 4 Piotski Score: 3 The stock has a rating OBSERVE & 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 3.
Description
BNK Capital Markets is a Non-banking financial company and is engaged in the business of Investment activities.Site:500069
Market Cap:
Rs 193 cr
Price:
193.0
Trading pe:
13.0x
Book-value:
231/share
Div yield:
1.29 %
Earning yield:
8.57%
Face-value:
10.0/share
52week high:
196.80
52week low:
57.55
Technical Analysis
Stock trades at 193.0, above its 50dma 186.31. It also trades above its 200dma 139.14. The stock remains bullish on techicals
The 52 week high is at 196.80 and the 52week low is at 57.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.84 times its book value
– is expected to give good quarter
– has delivered good profit growth of 19.40% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 20.37%
Weakness
– has a low return on equity of 4.39% for last 3 years.
Competition
– The industry trades at a mean P/E of 24.3x. SBI Cards trades at the industry’s max P/E of 94.05x. 500069 trades at a P/E of 13.0x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 7.0. 500069 has a G-Factor of 4 and Piotski scoreof 3.
– Average 1 month return for industry is -1.1%. The max 1- month return was given by Bajaj Holdings: a return of 4.94 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 23.5 cr compared to Rs 10.05 cr for period ended Mar 2020, a rise of 133.8%
Operating Profits reported at Rs 13.39 cr for period ended Mar 2021 vis-vis 8.13 for period ended Mar 2020 .
Operating Margins contracted -2391.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 8.56 compared to Rs 0.7 for previous quarter ended Dec 2020 and Rs 7.8 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 46.0 cr for period ended Mar 2021 vis-vis sales of Rs 18.0 cr for the period ended Mar 2020, a healthy growth of 60.9%. The 3 year sales cagr stood at 56.5%.
Operating margins shrank to 45.0% for period ended Mar 2021 vis-vis 51.0% for period ended Mar 2020, contraction of 600.0 bps.
Net Profit reported at Rs 15.0 cr for period ended Mar 2021 vis-vis sales of Rs 9.0 cr for the period ended Mar 2020, rising 40.0%.
Company recorded a healthy Net Profit CAGR of 71.0% 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 -3.0 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 6.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 215% 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 148% vis-vis a compounded sales growth of 54% over the last 3 Years. – The compounded profit growth on a TTM basis is 72% vis-vis a compounded profit growth of 73% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 40.31% vis-vis 40.31% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.84 times its book value
– is expected to give good quarter
– has delivered good profit growth of 19.40% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 20.37% – has a low return on equity of 4.39% for last 3 years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 186.31 and is trading at 193.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
