Mehabe score: 4 G Factor: 3 Piotski Score: 7 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 7.
Description
Gilada Finance & Investments is engaged in the business of lending and primarily deals in vehicle financing, small business loansand mortgage loans.(Source : 201903 Annual Report Page No: 72)Site:538788Main Symbol:GILADAFINS
Stock trades at 42.4, above its 50dma 38.87. It also trades above its 200dma 31.93. The stock remains bullish on techicals
The 52 week high is at 52.25 and the 52week low is at 9.91
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.79 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 10.28% over past five years.
– has a low return on equity of 5.05% for last 3 years.
Competition
– The industry trades at a mean P/E of 26.1x. SBI Cards trades at the industry’s max P/E of 107.06x. 538788 trades at a P/E of 15.2x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 7.0. 538788 has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 3.6%. The max 1- month return was given by Bajaj Finserv: a return of 13.18 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.76 cr compared to Rs 0.73 cr for period ended Jun 2020, a rise of 4.1%
Operating Profits reported at Rs 0.46 cr for period ended Jun 2021 vis-vis 0.5 for period ended Jun 2020 .
Operating Margins contracted -796.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.65 compared to Rs -0.06 for previous quarter ended Mar 2021 and Rs 0.4 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3.38 cr for period ended TTM vis-vis sales of Rs 3.36 cr for the period ended Mar 2021, a growth of 0.6%. The 3 year sales cagr stood at 0.9%.
Operating margins shrank to 60.06% for period ended TTM vis-vis 61.01% for period ended Mar 2021, contraction of 95.0 bps.
Net Profit reported at Rs 1.12 cr for period ended TTM vis-vis sales of Rs 0.98 cr for the period ended Mar 2021, rising 12.5%.
Company recorded a healthy Net Profit CAGR of 21.1% over the last 3 years
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 5.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 286% on a 1 Year basis vis-vis a return of 23% over the last 3 Years. – The compounded sales growth on a TTM bassis is -2% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is 5% vis-vis a compounded profit growth of 1% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 41.23% vis-vis 41.23% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.79 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 10.28% over past five years.
– has a low return on equity of 5.05% 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 38.87 and is trading at 42.4 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
