Mehabe score: 3 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
JSW Holdings is primarily engaged in the business of investing and financing.Site:JSWHLMain Symbol:JSWHL
Stock trades at 5073.0, above its 50dma 4809.79. It also trades above its 200dma 4019.67. The stock remains bullish on techicals
The 52 week high is at 6000.05 and the 52week low is at 1892.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.45 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 1.01% for last 3 years.
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. JSWHL trades at a P/E of 85.7x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 6.0. JSWHL has a G-Factor of 3 and Piotski scoreof 5.
– 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 16.0 cr compared to Rs 12.0 cr for period ended Jun 2020, a rise of 33.3%
Operating Profits reported at Rs 14.0 cr for period ended Jun 2021 vis-vis 11.0 for period ended Jun 2020 .
Operating Margins contracted -416.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 9.62 compared to Rs 9.17 for previous quarter ended Mar 2021 and Rs 7.68 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 96.0 cr for period ended TTM vis-vis sales of Rs 93.0 cr for the period ended Mar 2021, a growth of 3.1%. The 3 year sales cagr stood at -3.6%.
Net Profit reported at Rs 68.0 cr for period ended TTM vis-vis sales of Rs 66.0 cr for the period ended Mar 2021, rising 2.9%.
Company reported a poor Net Profit CAGR of -8.2% 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 1.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 164% on a 1 Year basis vis-vis a return of 38% over the last 3 Years. – The compounded sales growth on a TTM bassis is -23% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -37% vis-vis a compounded profit growth of -1% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 26.89% vis-vis 26.64% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 11.34% vis-vis 11.6% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.45 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 1.01% 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 4809.79 and is trading at 5073.0 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
