Mehabe score: 3 G Factor: 2 Piotski Score: 6 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 2 and Piotski score of 6.
Description
Global Capital Markets is into the business of Finance and investments in shares & securities. Further the Company had been carrying on the business of advancing loans and investing in quoted and unquoted securities. However the Company is at present is concentrating mainly on development of NBFC activities.Site:530263Main Symbol:GLOBALCA
Stock trades at 4.05, above its 50dma 2.98. It also trades above its 200dma 2.02. The stock remains bullish on techicals
The 52 week high is at 4.56 and the 52week low is at 0.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.20 times its book value
Weakness
– The company has delivered a poor sales growth of -13.08% over past five years.
-Promoter holding is low: 5.00%
– has a low return on equity of -1.28% for last 3 years.
– has high debtors of 342.83 days.
Competition
– The industry trades at a mean P/E of 22.3x. SBI Cards trades at the industry’s max P/E of 108.2x. 530263 trades at a P/E of 17.7x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 6.0. 530263 has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 6.6%. The max 1- month return was given by Global Cap.Mkt.: a return of 42.61 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.96 cr compared to Rs 0.27 cr for period ended Jun 2020, a rise of 255.6%
Operating Profits reported at Rs 0.34 cr for period ended Jun 2021 vis-vis 0.25 for period ended Jun 2020 .
Operating Margins contracted -5717.6 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.13 compared to Rs -0.09 for previous quarter ended Mar 2021 and Rs 0.09 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 5.3 cr for period ended TTM vis-vis sales of Rs 4.61 cr for the period ended Mar 2021, a healthy growth of 13.0%. The 3 year sales cagr stood at -16.5%.
Operating margins shrank to 12.08% for period ended TTM vis-vis 12.15% for period ended Mar 2021, contraction of 7.0 bps.
Net Profit reported at Rs 0.57 cr for period ended TTM vis-vis sales of Rs 0.48 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 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 227% on a 1 Year basis vis-vis a return of 24% over the last 3 Years. – The compounded sales growth on a TTM bassis is 109% vis-vis a compounded sales growth of -23% over the last 3 Years. – The compounded profit growth on a TTM basis is 124% vis-vis a compounded profit growth of 39% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 95.0% vis-vis 95.0% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.20 times its book value – The company has delivered a poor sales growth of -13.08% over past five years.
-Promoter holding is low: 5.00%
– has a low return on equity of -1.28% for last 3 years.
– has high debtors of 342.83 days.
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 2.98 and is trading at 4.05 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
