Mehabe score: 4 G Factor: 4 Piotski Score: 7 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 7.
Description
Canopy Finance (Formerly Known as Kartavya Udyog Viniyog Limited) is engaged in the Business of financial service activities.Site:539304Main Symbol:CANOPYFIN
Stock trades at 13.9, below its 50dma 23.02 and below its 200dma 20.03. The stock remains bearish on technicals
The 52 week high is at 42.00 and the 52week low is at 10.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Promoter holding is low: 18.63%
– has a low return on equity of -9.94% 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 97.85x. 539304 trades at a P/E of 18.1x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 7.0. 539304 has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 1.1%. The max 1- month return was given by Canopy Finance: a return of 9.13 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 0.47 cr compared to Rs 2.23 cr for period ended Sep 2020, a fall of 78.9%
Operating Profits reported at Rs 0.4 cr for period ended Sep 2021 vis-vis 0.03 for period ended Sep 2020 .
Operating Margins expanded 8376.1 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.4 compared to Rs 0.77 for previous quarter ended Jun 2021 and Rs 0.01 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3.05 cr for period ended TTM vis-vis sales of Rs 4.94 cr for the period ended Mar 2021, a fall of 62.0%. The 3 year sales cagr stood at 10.8%.
Operating margins expanded to 50.49% for period ended TTM vis-vis 27.33% for period ended Mar 2021, expansion of 2316.0 bps.
Net Profit reported at Rs 1.07 cr for period ended TTM vis-vis sales of Rs 1.04 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 0.62 cr for period ended Mar 2021 vis-vis Rs -0.17 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 17.0% compared to -10.0% over the last 3 Years. – The stock has given a return of 37% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 57% vis-vis a compounded sales growth of 174% over the last 3 Years. – The compounded profit growth on a TTM basis is 133% vis-vis a compounded profit growth of 147% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 81.37% vis-vis 81.37% for Jun 2021
Conclusion
– has reduced debt.
– is almost debt free. – Promoter holding is low: 18.63%
– has a low return on equity of -9.94% 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 below its 50 DMA 23.02 and is trading at 13.9. Shows a near term lack of buying interest.
