Mehabe score: 2 G Factor: 1 Piotski Score: 1 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 1 and Piotski score of 1.
Description
Kapashi Commercial Ltd. engages in financing business in India.Site:512399Main Symbol:KAPASHI
Stock trades at 62.2, above its 50dma 49.85. It also trades above its 200dma 40.42. The stock remains bullish on techicals
The 52 week high is at 64.05 and the 52week low is at 34.90
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -15.59% over past five years.
-Promoter holding has decreased over last 3 years: -12.77%
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. 512399 trades at a P/E of x
– Industry’s mean G-Factor is 2.5 while the mean Piotski score is 6.0. 512399 has a G-Factor of 1 and Piotski scoreof 1.
– Average 1 month return for industry is 4.4%. 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 0.11 cr compared to Rs 0.12 cr for period ended Jun 2020, a fall of 8.3%
Operating Profits reported at Rs 0.01 cr for period ended Jun 2021 vis-vis 0.07 for period ended Jun 2020 .
Operating Margins contracted -4924.2 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.46 compared to Rs -0.34 for previous quarter ended Mar 2021 and Rs 0.04 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.3 cr for period ended TTM vis-vis sales of Rs 0.3 cr for the period ended Mar 2021, The 3 year sales cagr stood at -16.8%.
Net Profit reported at Rs -0.12 cr for period ended TTM vis-vis sales of Rs -0.34 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 3% 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 -55% vis-vis a compounded sales growth of -12% over the last 3 Years. – The compounded profit growth on a TTM basis is -440% 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 39.23% vis-vis 39.23% for Mar 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -15.59% over past five years.
-Promoter holding has decreased over last 3 years: -12.77%
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 49.85 and is trading at 62.2 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
