Mehabe score: 3 G Factor: 3 Piotski Score: 4 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 4.
Description
Superior Finlease is engaged in the business of providing loans and advances.Site:539835Main Symbol:SUPERIOR
Stock trades at 190.0, above its 50dma 179.83. It also trades above its 200dma 140.36. The stock remains bullish on techicals
The 52 week high is at 209.00 and the 52week low is at 86.00
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 17.54 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 3.06%
– has a low return on equity of 5.35% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 23.6x. Superior Finleas trades at the industry’s max P/E of 259.86x. 539835 trades at a P/E of 260.0x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 6.0. 539835 has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 1.4%. The max 1- month return was given by Bajaj Finserv: a return of 10.05 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.09 cr compared to Rs 0.23 cr for period ended Jun 2020, a fall of 60.9%
Operating Profits reported at Rs 0.02 cr for period ended Jun 2021 vis-vis 0.16 for period ended Jun 2020 .
Operating Margins contracted -4734.3 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.37 compared to Rs -4.93 for previous quarter ended Mar 2021 and Rs 0.53 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2.53 cr for period ended TTM vis-vis sales of Rs 3.0 cr for the period ended Mar 2021, a fall of 18.6%. The 3 year sales cagr stood at 113.5%.
Operating margins shrank to -79.45% for period ended TTM vis-vis -24.67% for period ended Mar 2021, contraction of 5478.0 bps.
Net Profit reported at Rs -0.55 cr for period ended TTM vis-vis sales of Rs 0.22 cr for the period ended Mar 2021, falling 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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 7.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 119% on a 1 Year basis vis-vis a return of 134% over the last 3 Years. – The compounded sales growth on a TTM bassis is 194% vis-vis a compounded sales growth of 139% over the last 3 Years. – The compounded profit growth on a TTM basis is 38% vis-vis a compounded profit growth of 77% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 96.94% vis-vis 96.94% for Mar 2021
Conclusion
– – Stock is trading at 17.54 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 3.06%
– has a low return on equity of 5.35% for last 3 years.
– might be capitalizing the interest cost
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 179.83 and is trading at 190.0 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
