Mehabe score: 6 G Factor: 5 Piotski Score: 6 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 6.
Description
Vani Commercials is engaged in the business of Non-Banking Financial Institution, The Company being a Non-Banking Finance Company has obtained a Certificate of registration from the Reserve Bank of India to carry on such businesses. Further the Company is entitled to continue to hold such certificate of registration in terms of its assets/income pattern as on 31st March, 2019.Site:538918Main Symbol:VANICOM
Stock trades at 2.2, below its 50dma 2.66 and below its 200dma 5.48. The stock remains bearish on technicals
The 52 week high is at 4.15 and the 52week low is at 1.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.22 times its book value
Weakness
– has low interest coverage ratio.
-Promoter holding is low: 5.71%
– has a low return on equity of 0.32% for last 3 years.
Competition
– The industry trades at a mean P/E of 19.7x. SBI Cards trades at the industry’s max P/E of 107.99x. 538918 trades at a P/E of 18.2x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 6.0. 538918 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 2.0%. The max 1- month return was given by Bajaj Finserv: a return of 24.7 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.22 cr compared to Rs 0.13 cr for period ended Jun 2020, a rise of 69.2%
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 1888.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.05 compared to Rs -0.02 for previous quarter ended Mar 2021 and Rs 0.02 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.76 cr for period ended TTM vis-vis sales of Rs 0.67 cr for the period ended Mar 2021, a healthy growth of 11.8%. The 3 year sales cagr stood at 43.0%.
Operating margins expanded to 64.47% for period ended TTM vis-vis 59.7% for period ended Mar 2021, expansion of 477.0 bps.
Net Profit reported at Rs 0.05 cr for period ended TTM vis-vis sales of Rs 0.03 cr for the period ended Mar 2021, rising 40.0%.
Company recorded a healthy Net Profit CAGR of 71.0% 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 0.46 cr for period ended Mar 2021 vis-vis Rs -4.24 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 0.0% over the last 3 Years. – The stock has given a return of -47% on a 1 Year basis vis-vis a return of -13% over the last 3 Years. – The compounded sales growth on a TTM bassis is 29% vis-vis a compounded sales growth of 41% over the last 3 Years. – The compounded profit growth on a TTM basis is % vis-vis a compounded profit growth of 44% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 94.29% vis-vis 94.29% for Mar 2021
Conclusion
– Stock is trading at 0.22 times its book value – has low interest coverage ratio.
-Promoter holding is low: 5.71%
– has a low return on equity of 0.32% 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 below its 50 DMA 2.66 and is trading at 2.2. Shows a near term lack of buying interest.
