Mehabe score: 4 G Factor: 3 Piotski Score: 4 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 3 and Piotski score of 4.
Description
3P Land Holdings is engaged in the business of Real Estate.Site:3PLANDMain Symbol:3PLAND
Stock trades at 16.6, above its 50dma 14.18. It also trades above its 200dma 11.05. The stock remains bullish on techicals
The 52 week high is at 18.80 and the 52week low is at 5.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.64 times its book value
Weakness
– has a low return on equity of 1.99% for last 3 years.
-Contingent liabilities of Rs.108.13 Cr.
Competition
– The industry trades at a mean P/E of 27.1x. SBI Cards trades at the industry’s max P/E of 100.52x. 3PLAND trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 6.0. 3PLAND has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 3.9%. The max 1- month return was given by 3P Land Hold.: a return of 17.79 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.37 cr compared to Rs 0.35 cr for period ended Jun 2020, a rise of 5.7%
Operating Profits reported at Rs 0.18 cr for period ended Jun 2021 vis-vis 0.11 for period ended Jun 2020 .
Operating Margins expanded 1722.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.05 compared to Rs -0.03 for previous quarter ended Mar 2021 and Rs 0.02 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1.43 cr for period ended TTM vis-vis sales of Rs 1.41 cr for the period ended Mar 2021, a growth of 1.4%. The 3 year sales cagr stood at -8.1%.
Operating margins expanded to 20.28% for period ended TTM vis-vis 14.89% for period ended Mar 2021, expansion of 539.0 bps.
Net Profit reported at Rs -0.08 cr for period ended TTM vis-vis sales of Rs -0.14 cr for the period ended Mar 2021, rising 0%.
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 -0.86 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 104% on a 1 Year basis vis-vis a return of 7% over the last 3 Years. – The compounded sales growth on a TTM bassis is -51% vis-vis a compounded sales growth of 76% over the last 3 Years. – The compounded profit growth on a TTM basis is -107% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 26.7% vis-vis 26.75% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.64 times its book value – has a low return on equity of 1.99% for last 3 years.
-Contingent liabilities of Rs.108.13 Cr.
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 14.18 and is trading at 16.6 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
