Mehabe score: 4 G Factor: 5 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 5 and Piotski score of 5.
Description
Srestha Finvest is a Non-Banking Financial Company (‘NBFC’) engaged in providing Loans, Finance and Investments.(Source : 201903 Annual Report Page No:36)Site:539217Main Symbol:SRESTHA
Stock trades at 2.14, below its 50dma 2.15 and below its 200dma 3.33. The stock remains bearish on technicals
The 52 week high is at 5.78 and the 52week low is at 1.41
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.05 times its book value
Weakness
– has low interest coverage ratio.
– has a low return on equity of -2.24% for last 3 years.
Competition
– The industry trades at a mean P/E of 24.5x. SBI Cards trades at the industry’s max P/E of 93.15x. 539217 trades at a P/E of x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 6.0. 539217 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is -1.3%. The max 1- month return was given by Bajaj Finserv: a return of 7.18 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1.08 cr compared to Rs 0.8 cr for period ended Mar 2020, a rise of 35.0%
The EPS for Mar 2021 was Rs 0.04 compared to Rs 0.04 for previous quarter ended Dec 2020 and Rs -0.11 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4.7 cr for period ended Mar 2021 vis-vis sales of Rs 4.16 cr for the period ended Mar 2020, a healthy growth of 11.5%. The 3 year sales cagr stood at 15.3%.
Operating margins shrank to 50.64% for period ended Mar 2021 vis-vis 53.37% for period ended Mar 2020, contraction of 273.0 bps.
Net Profit reported at Rs -0.54 cr for period ended Mar 2021 vis-vis sales of Rs -0.21 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1.16 cr for period ended Mar 2021 vis-vis Rs -1.78 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 -63% on a 1 Year basis vis-vis a return of -39% over the last 3 Years. – The compounded sales growth on a TTM bassis is 13% vis-vis a compounded sales growth of 15% over the last 3 Years. – The compounded profit growth on a TTM basis is -157% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
Conclusion
– Stock is trading at 1.05 times its book value – has low interest coverage ratio.
– has a low return on equity of -2.24% 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 2.15 and is trading at 2.14. Shows a near term lack of buying interest.
