Mehabe score: 6 G Factor: 6 Piotski Score: 6 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 6 and Piotski score of 6.
Description
Glance Finance is engaged in the business of Finance & Investment activities and in providing ancillary services related to the said business activities.Site:531199Main Symbol:GLANCE
Stock trades at 54.9, above its 50dma 53.27. It also trades above its 200dma 46.2. The stock remains bullish on techicals
The 52 week high is at 64.10 and the 52week low is at 30.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.61 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 -23.82% over past five years.
– has a low return on equity of 2.45% for last 3 years.
-Debtor days have increased from 24.13 to 40.79 days.
Competition
– The industry trades at a mean P/E of 25.9x. SBI Cards trades at the industry’s max P/E of 107.04x. 531199 trades at a P/E of 6.38x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 6.0. 531199 has a G-Factor of 6 and Piotski scoreof 6.
– Average 1 month return for industry is 3.1%. The max 1- month return was given by Bajaj Finserv: a return of 13.55 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1.42 cr compared to Rs 0.31 cr for period ended Jun 2020, a rise of 358.1%
Operating Profits reported at Rs 1.57 cr for period ended Jun 2021 vis-vis 0.43 for period ended Jun 2020 .
Operating Margins contracted -2814.6 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 4.03 compared to Rs 0.22 for previous quarter ended Mar 2021 and Rs 1.06 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4.6 cr for period ended TTM vis-vis sales of Rs 3.49 cr for the period ended Mar 2021, a healthy growth of 24.1%. The 3 year sales cagr stood at 10.8%.
Operating margins expanded to 77.61% for period ended TTM vis-vis 69.63% for period ended Mar 2021, expansion of 798.0 bps.
Net Profit reported at Rs 1.94 cr for period ended TTM vis-vis sales of Rs 1.27 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 7.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 8% on a 1 Year basis vis-vis a return of 9% over the last 3 Years. – The compounded sales growth on a TTM bassis is 70% vis-vis a compounded sales growth of -30% over the last 3 Years. – The compounded profit growth on a TTM basis is 4750% vis-vis a compounded profit growth of 54% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.0% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.07% vis-vis 25.0% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.61 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 -23.82% over past five years.
– has a low return on equity of 2.45% for last 3 years.
-Debtor days have increased from 24.13 to 40.79 days.
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 53.27 and is trading at 54.9, thus bullish price action wise.
