Mehabe score: 5 G Factor: 5 Piotski Score: 5 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 5 and Piotski score of 5.
Description
Continental Securities is presently engaged in business of investment in securities, intercorporate loans, advances and such allied fund based activities.(Source : Company web-site)Site:538868Main Symbol:CSL
Stock trades at 19.9, above its 50dma 19.66. It also trades above its 200dma 15.51. The stock remains bullish on techicals
The 52 week high is at 22.55 and the 52week low is at 9.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 5.08% for last 3 years.
Competition
– The industry trades at a mean P/E of 22.5x. SBI Cards trades at the industry’s max P/E of 108.2x. 538868 trades at a P/E of 20.6x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 6.0. 538868 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 0.5%. The max 1- month return was given by Bajaj Finserv: a return of 10.21 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.24 cr compared to Rs 0.15 cr for period ended Jun 2020, a rise of 60.0%
Operating Profits reported at Rs 0.16 cr for period ended Jun 2021 vis-vis 0.07 for period ended Jun 2020 .
Operating Margins expanded 2000.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.28 compared to Rs 0.24 for previous quarter ended Mar 2021 and Rs 0.15 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.91 cr for period ended TTM vis-vis sales of Rs 0.82 cr for the period ended Mar 2021, a growth of 9.9%. The 3 year sales cagr stood at 30.4%.
Operating margins expanded to 62.64% for period ended TTM vis-vis 59.76% for period ended Mar 2021, expansion of 288.0 bps.
Net Profit reported at Rs 0.41 cr for period ended TTM vis-vis sales of Rs 0.35 cr for the period ended Mar 2021, rising 14.6%.
Company recorded a healthy Net Profit CAGR of 89.8% over the last 3 years
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 78% on a 1 Year basis vis-vis a return of 45% over the last 3 Years. – The compounded sales growth on a TTM bassis is 54% vis-vis a compounded sales growth of 24% over the last 3 Years. – The compounded profit growth on a TTM basis is 71% vis-vis a compounded profit growth of 160% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 59.96% vis-vis 59.96% for Mar 2021
Conclusion
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 5.08% 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 19.66 and is trading at 19.9, thus bullish price action wise.
