Mehabe score: 8 G Factor: 4 Piotski Score: 8 The stock has a rating . 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 8.
Description
Kreon Finnancial Services Limited is an India-based non-banking finance company.Site:530139Main Symbol:KREONFIN
Stock trades at 24.8, above its 50dma 8.27. It also trades above its 200dma 7.42. The stock remains bullish on techicals
The 52 week high is at 15.27 and the 52week low is at 3.19
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 5.37 times its book value
– has a low return on equity of -36.92% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 23.9x. SBI Cards trades at the industry’s max P/E of 119.85x. 530139 trades at a P/E of 25.0x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. 530139 has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 23.3%. The max 1- month return was given by Kreon Finnancial: a return of 163.87 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 0.79 cr compared to Rs 0.35 cr for period ended Sep 2020, a rise of 125.7%
Company reported operating profit of Rs 0.37 cr for period ended Sep 2021, operating profit margin at 46.8 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs 0.36 compared to Rs 0.28 for previous quarter ended Jun 2021 and Rs -0.4 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2.46 cr for period ended TTM vis-vis sales of Rs 1.72 cr for the period ended Mar 2021, a healthy growth of 30.1%. The 3 year sales cagr stood at 44.8%.
Operating margins expanded to 40.24% for period ended TTM vis-vis -7.56% for period ended Mar 2021, expansion of 4780.0 bps.
Net Profit reported at Rs 1.0 cr for period ended TTM vis-vis sales of Rs -0.48 cr for the period ended Mar 2021, rising 148.0%.
Company recorded a healthy Net Profit CAGR of 63.2% 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 1.11 cr for period ended Mar 2021 vis-vis Rs -4.55 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was -25.0% compared to -37.0% over the last 3 Years. – The stock has given a return of 571% on a 1 Year basis vis-vis a return of 58% over the last 3 Years. – The compounded sales growth on a TTM bassis is 120% vis-vis a compounded sales growth of 21% over the last 3 Years. – The compounded profit growth on a TTM basis is 126% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 54.47% vis-vis 54.47% for Mar 2021
Conclusion
– – Stock is trading at 5.37 times its book value
– has a low return on equity of -36.92% for last 3 years.
– might be capitalizing the interest cost
