Mehabe score: 6 G Factor: 3 Piotski Score: 5 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 5.
Description
DB (International) Stock Brokers is engaged in the business of stock broking and depository participant services of CDSL.Site:DBSTOCKBROMain Symbol:DBSTOCKBRO
Stock trades at 14.3, above its 50dma 14.07. It also trades above its 200dma 11.56. The stock remains bullish on techicals
The 52 week high is at 20.10 and the 52week low is at 7.01
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 1.19 times its book value
– is expected to give good quarter
-Debtor days have improved from 130.26 to 28.88 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 30.01%
– has a low return on equity of 0.75% for last 3 years.
Competition
– The industry trades at a mean P/E of 17.8x. DB Intl.Stock trades at the industry’s max P/E of 162.6x. DBSTOCKBRO trades at a P/E of 163.0x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 8.0. DBSTOCKBRO has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 28.8%. The max 1- month return was given by Steel City Sec.: a return of 42.37 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 7.46 cr compared to Rs 2.58 cr for period ended Jun 2020, a rise of 189.1%
Operating Profits reported at Rs 2.94 cr for period ended Jun 2021 vis-vis 1.01 for period ended Jun 2020 .
Operating Margins expanded 26.3 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.55 compared to Rs 0.02 for previous quarter ended Mar 2021 and Rs 0.19 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 22.95 cr for period ended TTM vis-vis sales of Rs 18.07 cr for the period ended Mar 2021, a healthy growth of 21.3%. The 3 year sales cagr stood at 126.7%.
Operating margins expanded to 32.29% for period ended TTM vis-vis 30.27% for period ended Mar 2021, expansion of 202.0 bps.
Net Profit reported at Rs 1.57 cr for period ended TTM vis-vis sales of Rs 0.31 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 1.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 53% on a 1 Year basis vis-vis a return of 19% over the last 3 Years. – The compounded sales growth on a TTM bassis is 71% vis-vis a compounded sales growth of 45% over the last 3 Years. – The compounded profit growth on a TTM basis is -88% vis-vis a compounded profit growth of -18% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 69.99% vis-vis 69.99% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 1.19 times its book value
– is expected to give good quarter
-Debtor days have improved from 130.26 to 28.88 days. – Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 30.01%
– has a low return on equity of 0.75% 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 14.07 and is trading at 14.3 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
