Mehabe score: 7 G Factor: 6 Piotski Score: 7 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 7.
Description
Sumedha Fiscal Services is engaged in the business of Investment Banking Services.Site:530419Main Symbol:SUMEDHA
Stock trades at 33.6, above its 50dma 30.77. It also trades above its 200dma 25.92. The stock remains bullish on techicals
The 52 week high is at 37.95 and the 52week low is at 14.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.57 times its book value
– has delivered good profit growth of 48.48% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 11.30% over past five years.
– has a low return on equity of 8.31% 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. 530419 trades at a P/E of 3.1x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 7.0. 530419 has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 5.3%. The max 1- month return was given by Sumedha Fiscal: a return of 14.29 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 11.15 cr compared to Rs 4.41 cr for period ended Jun 2020, a rise of 152.8%
Operating Profits reported at Rs 2.31 cr for period ended Jun 2021 vis-vis 3.56 for period ended Jun 2020 .
Operating Margins contracted -6000.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 2.2 compared to Rs 0.81 for previous quarter ended Mar 2021 and Rs 3.56 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 26.74 cr for period ended TTM vis-vis sales of Rs 20.0 cr for the period ended Mar 2021, a healthy growth of 25.2%. The 3 year sales cagr stood at 12.8%.
Operating margins shrank to 33.84% for period ended TTM vis-vis 51.55% for period ended Mar 2021, contraction of 1771.0 bps.
Net Profit reported at Rs 7.57 cr for period ended TTM vis-vis sales of Rs 8.66 cr for the period ended Mar 2021, falling 14.4%.
Company recorded a healthy Net Profit CAGR of 18.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 2.39 cr for period ended Mar 2021 vis-vis Rs -3.64 cr for period ended Mar 2020
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 20.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 81% on a 1 Year basis vis-vis a return of 4% over the last 3 Years. – The compounded sales growth on a TTM bassis is 8% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is 402% vis-vis a compounded profit growth of 33% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 50.34% vis-vis 50.34% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.57 times its book value
– has delivered good profit growth of 48.48% CAGR over last 5 years – The company has delivered a poor sales growth of 11.30% over past five years.
– has a low return on equity of 8.31% for last 3 years.
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 30.77 and is trading at 33.6, thus bullish price action wise.
