Mehabe score: 5 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
CSB Bank (formerly The Catholic Syrian Bank Ltd) is engaged in the business of banking Services ,oldest private sector banks in India with a history of over 98 years, and a strong base in Kerala , Bank focus on SME, retail, and NRI customers.(Source : Company Web-site )Site:CSBBANKMain Symbol:CSBBANK
Stock trades at 351.0, above its 50dma 324.26. It also trades above its 200dma 269.79. The stock remains bullish on techicals
The 52 week high is at 374.00 and the 52week low is at 179.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 28.19% CAGR over last 5 years
Weakness
– Stock is trading at 2.79 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 4.77% over past five years.
– has a low return on equity of 0.82% for last 3 years.
-Contingent liabilities of Rs.2029.59 Cr.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.402.81 Cr.
Competition
– The industry trades at a mean P/E of 20.3x. Kotak Mah. Bank trades at the industry’s max P/E of 34.19x. CSBBANK trades at a P/E of 27.0x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 6.0. CSBBANK has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 0.3%. The max 1- month return was given by CSB Bank: a return of 9.34 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 495.0 cr compared to Rs 423.0 cr for period ended Jun 2020, a rise of 17.0%
Operating Profits reported at Rs 263.0 cr for period ended Jun 2021 vis-vis 188.0 for period ended Jun 2020 .
Operating Margins expanded 868.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.52 compared to Rs 2.47 for previous quarter ended Mar 2021 and Rs 3.09 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1945.0 cr for period ended TTM vis-vis sales of Rs 1872.0 cr for the period ended Mar 2021, a growth of 3.8%. The 3 year sales cagr stood at 13.0%.
Operating margins shrank to -100.0% for period ended TTM vis-vis -68.0% for period ended Mar 2021, contraction of 3200.0 bps.
Net Profit reported at Rs 226.0 cr for period ended TTM vis-vis sales of Rs 218.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1374.0 cr for period ended Mar 2021 vis-vis Rs -1109.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 11.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 90% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 23% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 383% vis-vis a compounded profit growth of 62% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 5.47% vis-vis 5.3% for Mar 2021 – Public shareholding has fallen for the period ended Jun 2021. The Jun 2021 public holding stood at 30.76% vis-vis 32.81% for Mar 2021
Conclusion
– has delivered good profit growth of 28.19% CAGR over last 5 years – Stock is trading at 2.79 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 4.77% over past five years.
– has a low return on equity of 0.82% for last 3 years.
-Contingent liabilities of Rs.2029.59 Cr.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.402.81 Cr.
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 324.26 and is trading at 351.0, thus bullish price action wise.
