Mehabe score: 6 G Factor: 2 Piotski Score: 4 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 2 and Piotski score of 4.
Description
Bullish Bonds And Holdings Ltd is engaged in the business of investing in shares and securities and to finance industrial enterprises in India.Site:540006Main Symbol:EASTWEST
Stock trades at 8.73, above its 50dma 7.56. It also trades above its 200dma 8.71. The stock remains bullish on techicals
The 52 week high is at 13.70 and the 52week low is at 6.15
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
– has a low return on equity of 3.39% for last 3 years.
-Debtor days have increased from 104.58 to 141.30 days.
Competition
– The industry trades at a mean P/E of 36.1x. Mahindra Logis. trades at the industry’s max P/E of 92.49x. 540006 trades at a P/E of 60.2x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 6.0. 540006 has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is 15.8%. The max 1- month return was given by Sindhu Trade: a return of 47.46 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 57.75 cr compared to Rs 37.92 cr for period ended Sep 2020, a rise of 52.3%
Operating Profits reported at Rs 3.92 cr for period ended Sep 2021 vis-vis 1.42 for period ended Sep 2020 .
Operating Margins expanded 304.3 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.14 compared to Rs -0.03 for previous quarter ended Jun 2021 and Rs -0.04 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 210.0 cr for period ended TTM vis-vis sales of Rs 161.0 cr for the period ended Mar 2021, a healthy growth of 23.3%. The 3 year sales cagr stood at -4.0%.
Operating margins expanded to 6.0% for period ended TTM vis-vis 5.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 4.0 cr for period ended TTM vis-vis sales of Rs -0.0 cr for the period ended Mar 2021, rising 100.0%.
Company reported a poor Net Profit CAGR of -7.2% 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 4.0 cr for period ended Mar 2021 vis-vis Rs -1.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of -10% on a 1 Year basis vis-vis a return of -29% over the last 3 Years. – The compounded sales growth on a TTM bassis is 21% vis-vis a compounded sales growth of -9% over the last 3 Years. – The compounded profit growth on a TTM basis is 348% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 9.8% vis-vis 9.8% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 25.33% vis-vis 25.33% for Jun 2021
Conclusion
– is expected to give good quarter – has low interest coverage ratio.
– has a low return on equity of 3.39% for last 3 years.
-Debtor days have increased from 104.58 to 141.30 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 7.56 and is trading at 8.73 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
