Mehabe score: 6 G Factor: 4 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 4 and Piotski score of 7.
Description
Sujala Trading & Holdings is primarily engaged in the business of investment in Share & Securities and Non-banking Financial Company and offers loans and other credit facilities and private funding etc.Site:539117Main Symbol:SUJALA
Stock trades at 12.1, above its 50dma 9.69. However it is trading below its 200dma 18.58. The stock remains weak though short term bullish momentum supports price action. It needs to close above 18.58 for bullish price action to continue
The 52 week high is at 12.14 and the 52week low is at 5.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.44 times its book value
Weakness
– The company has delivered a poor sales growth of -15.64% over past five years.
-Promoter holding is low: 15.57%
– has a low return on equity of 0.65% for last 3 years.
Competition
– The industry trades at a mean P/E of 20.6x. SBI Cards trades at the industry’s max P/E of 106.19x. 539117 trades at a P/E of 15.4x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 7.0. 539117 has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 8.6%. The max 1- month return was given by Sujala Trading &: a return of 21.4 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.34 cr compared to Rs 0.28 cr for period ended Jun 2020, a rise of 21.4%
Company reported operating profit of Rs 0.05 cr for period ended Jun 2021, operating profit margin at 14.7 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 0.09 compared to Rs -0.09 for previous quarter ended Mar 2021 and Rs -0.42 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1.56 cr for period ended TTM vis-vis sales of Rs 1.5 cr for the period ended Mar 2021, a growth of 3.8%. The 3 year sales cagr stood at 23.9%.
Operating margins expanded to 28.85% for period ended TTM vis-vis 10.67% for period ended Mar 2021, expansion of 1818.0 bps.
Net Profit reported at Rs 0.45 cr for period ended TTM vis-vis sales of Rs 0.12 cr for the period ended Mar 2021, rising 73.3%.
Company recorded a healthy Net Profit CAGR of 59.9% 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 1.05 cr for period ended Mar 2021 vis-vis Rs -0.4 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 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 25% on a 1 Year basis vis-vis a return of -42% over the last 3 Years. – The compounded sales growth on a TTM bassis is -9% vis-vis a compounded sales growth of -43% over the last 3 Years. – The compounded profit growth on a TTM basis is 1225% vis-vis a compounded profit growth of -3% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 84.43% vis-vis 84.43% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.44 times its book value – The company has delivered a poor sales growth of -15.64% over past five years.
-Promoter holding is low: 15.57%
– has a low return on equity of 0.65% 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 9.69 and is trading at 12.1, thus bullish price action wise.
