Mehabe score: 6 G Factor: 3 Piotski Score: 6 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 6.
Description
Arihant Capital Markets is engaged in the business of Securities brokerage services. Site:511605 Main Symbol:ARIHCAPM
Stock trades at 244.0, above its 50dma 88.76. It also trades above its 200dma 74.12. The stock remains bullish on techicals
The 52 week high is at 124.45 and the 52week low is at 35.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 32.25% CAGR over last 5 years
Weakness
– has high debtors of 478.26 days.
Competition
– The industry trades at a mean P/E of 11.1x. DB Intl.Stock trades at the industry’s max P/E of 62.65x. 511605 trades at a P/E of 11.2x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 8.0. 511605 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 45.3%. The max 1- month return was given by DB Intl.Stock: a return of 144.37 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 40.0 cr compared to Rs 29.0 cr for period ended Sep 2020, a rise of 37.9%
Operating Profits reported at Rs 17.0 cr for period ended Sep 2021 vis-vis 11.0 for period ended Sep 2020 .
Operating Margins expanded 456.9 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 6.0 compared to Rs 5.71 for previous quarter ended Jun 2021 and Rs 3.89 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 145.0 cr for period ended TTM vis-vis sales of Rs 116.0 cr for the period ended Mar 2021, a healthy growth of 20.0%. The 3 year sales cagr stood at 16.0%.
Operating margins expanded to 43.0% for period ended TTM vis-vis 42.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 46.0 cr for period ended TTM vis-vis sales of Rs 35.0 cr for the period ended Mar 2021, rising 23.9%.
Company recorded a healthy Net Profit CAGR of 39.3% 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 21.0% compared to 16.0% over the last 3 Years. – The stock has given a return of 210% on a 1 Year basis vis-vis a return of 54% over the last 3 Years. – The compounded sales growth on a TTM bassis is 59% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is 135% vis-vis a compounded profit growth of 19% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.05% vis-vis 0.0% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 25.38% vis-vis 25.43% for Jun 2021
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 32.25% CAGR over last 5 years – has high debtors of 478.26 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 88.76 and is trading at 244.0 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
