Mehabe score: 3 G Factor: 3 Piotski Score: 5 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 3 and Piotski score of 5.
Description
Aditya Birla Money is a stock broking and capital market products distributor, offering Equity and Derivative trading through NSE and BSE and Currency Derivative on MCX-SX and Commodities Trading through MCX and NCDEX.Site:BIRLAMONEYMain Symbol:BIRLAMONEY
Stock trades at 68.0, above its 50dma 63.2. It also trades above its 200dma 54.71. The stock remains bullish on techicals
The 52 week high is at 88.80 and the 52week low is at 35.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 69.41% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 36.17%
Weakness
– Stock is trading at 8.00 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 10.37% over past five years.
– might be capitalizing the interest cost
– has high debtors of 291.99 days.
Competition
– The industry trades at a mean P/E of 9.8x. Indbank Merchant trades at the industry’s max P/E of 22.91x. BIRLAMONEY trades at a P/E of 19.2x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 8.0. BIRLAMONEY has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 16.6%. The max 1- month return was given by Garnet Intl.: a return of 80.97 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 57.19 cr compared to Rs 48.96 cr for period ended Sep 2020, a rise of 16.8%
Operating Profits reported at Rs 16.03 cr for period ended Sep 2021 vis-vis 12.85 for period ended Sep 2020 .
Operating Margins expanded 178.3 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 1.14 compared to Rs 1.0 for previous quarter ended Jun 2021 and Rs 0.77 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 208.0 cr for period ended TTM vis-vis sales of Rs 192.0 cr for the period ended Mar 2021, a growth of 7.7%. The 3 year sales cagr stood at 6.5%.
Operating margins shrank to 26.0% for period ended TTM vis-vis 27.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 20.0 cr for period ended TTM vis-vis sales of Rs 16.0 cr for the period ended Mar 2021, rising 20.0%.
Company recorded a healthy Net Profit CAGR of 26.0% 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 40.0% compared to 36.0% over the last 3 Years. – The stock has given a return of 51% on a 1 Year basis vis-vis a return of 11% over the last 3 Years. – The compounded sales growth on a TTM bassis is 18% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is 48% vis-vis a compounded profit growth of 30% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 26.2% vis-vis 26.2% for Mar 2021
Conclusion
– has delivered good profit growth of 69.41% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 36.17% – Stock is trading at 8.00 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 10.37% over past five years.
– might be capitalizing the interest cost
– has high debtors of 291.99 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 63.2 and is trading at 68.0 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
