Mehabe score: 4 G Factor: 0 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 0 and Piotski score of 6.
Description
Goldline International Finvest provides investment advisory services in India and internationally. The company offers investment advisory services for treasury management and money market operations. It also operates as an administrator of different investment trusts; and manages investment pools, shares syndicate, stocks, and securities.Site:538180Main Symbol:GOLDLINE
Stock trades at 0.44, above its 50dma 0.33. However it is trading below its 200dma 0.51. The stock remains weak though short term bullish momentum supports price action. It needs to close above 0.51 for bullish price action to continue
The 52 week high is at 0.50 and the 52week low is at 0.19
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.43 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -28.43% over past five years.
-Promoter holding is low: 6.36%
– has a low return on equity of 0.06% for last 3 years.
– has high debtors of 2004.93 days.
Competition
– The industry trades at a mean P/E of 22.7x. Goldline Intl. trades at the industry’s max P/E of 458.4x. 538180 trades at a P/E of 458.0x
– Industry’s mean G-Factor is 2.5 while the mean Piotski score is 6.0. 538180 has a G-Factor of 0 and Piotski scoreof 6.
– Average 1 month return for industry is 13.7%. The max 1- month return was given by Goldline Intl.: a return of 37.5 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.16 cr compared to Rs 0.08 cr for period ended Jun 2020, a rise of 100.0%
Company reported operating profit of Rs 0.02 cr for period ended Jun 2021, operating profit margin at 12.5 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.79 cr for period ended TTM vis-vis sales of Rs 0.71 cr for the period ended Mar 2021, a healthy growth of 10.1%. The 3 year sales cagr stood at -6.0%.
Operating margins expanded to 7.59% for period ended TTM vis-vis 4.23% for period ended Mar 2021, expansion of 336.0 bps.
Net Profit reported at Rs 0.07 cr for period ended TTM vis-vis sales of Rs 0.05 cr for the period ended Mar 2021, rising 28.6%.
Company recorded a healthy Net Profit CAGR of 32.6% 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 stock has given a return of 38% on a 1 Year basis vis-vis a return of -59% over the last 3 Years. – The compounded sales growth on a TTM bassis is -43% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is 150% vis-vis a compounded profit growth of 8% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 93.64% vis-vis 93.64% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.43 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -28.43% over past five years.
-Promoter holding is low: 6.36%
– has a low return on equity of 0.06% for last 3 years.
– has high debtors of 2004.93 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 0.33 and is trading at 0.44 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
