Mehabe score: 4 G Factor: 4 Piotski Score: 5 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 5.
Description
Comfort Fincap is engaged in Non-Banking Finance Company and Trading activities.Site:535267Main Symbol:COMFINCAP
Stock trades at 69.8, above its 50dma 42.11. It also trades above its 200dma 23.42. The stock remains bullish on techicals
The 52 week high is at 57.20 and the 52week low is at 4.20
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 7.64% for last 3 years.
Competition
– The industry trades at a mean P/E of 22.4x. SBI Cards trades at the industry’s max P/E of 115.93x. 535267 trades at a P/E of 18.8x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 6.0. 535267 has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 6.1%. The max 1- month return was given by Comfort Fincap: a return of 31.67 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 2.96 cr compared to Rs 2.44 cr for period ended Sep 2020, a rise of 21.3%
Operating Profits reported at Rs 2.34 cr for period ended Sep 2021 vis-vis 2.03 for period ended Sep 2020 .
Operating Margins contracted -414.3 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 1.19 compared to Rs 1.09 for previous quarter ended Jun 2021 and Rs 1.19 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 11.41 cr for period ended TTM vis-vis sales of Rs 11.13 cr for the period ended Mar 2021, a growth of 2.5%. The 3 year sales cagr stood at 15.6%.
Operating margins shrank to 71.08% for period ended TTM vis-vis 74.12% for period ended Mar 2021, contraction of 304.0 bps.
Net Profit reported at Rs 4.03 cr for period ended TTM vis-vis sales of Rs 4.18 cr for the period ended Mar 2021, falling 3.7%.
Company recorded a healthy Net Profit CAGR of 13.2% 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 1409% on a 1 Year basis vis-vis a return of 64% over the last 3 Years. – The compounded sales growth on a TTM bassis is 48% vis-vis a compounded sales growth of 15% over the last 3 Years. – The compounded profit growth on a TTM basis is 79% vis-vis a compounded profit growth of 20% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 1.57% vis-vis 1.57% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 43.81% vis-vis 44.3% for Jun 2021
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 7.64% 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 42.11 and is trading at 69.8, thus bullish price action wise.
