Mehabe score: 1 G Factor: 6 Piotski Score: 3 The stock has a rating SELL. 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 6 and Piotski score of 3.
Description
Kapashi Commercials Ltd was established in 1985. The Co. is an investment company and is mainly involved in trading in Stock market, Providing loan and Leasing [1][2] Site:KAPASHI Main Symbol:KAPASHI
Stock trades at 52.7, below its 50dma 64.1 and below its 200dma 53.72. The stock remains bearish on technicals
The 52 week high is at 86.70 and the 52week low is at 34.90
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– The company has delivered a poor sales growth of -15.59% over past five years.
– has a low return on equity of -1.59% for last 3 years.
-Earnings include an other income of Rs.3.44 Cr.
-Promoter holding has decreased over last 3 years: -12.77%
Competition
– The industry trades at a mean P/E of 28.2x. Bajaj Finance trades at the industry’s max P/E of 93.94x. KAPASHI trades at a P/E of 13.7x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 6.0. KAPASHI has a G-Factor of 6 and Piotski scoreof 3.
– Average 1 month return for industry is 4.9%. The max 1- month return was given by Cholaman.Inv.&Fn: a return of 20.01 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 0.13 cr compared to Rs 0.07 cr for period ended Dec 2020, a rise of 85.7% .
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Company reported negative operating profit of Rs -0.44 cr for period ended Dec 2021. For same period last year, operating profit was 0.03.
The EPS for quarter ended Dec 2021 is Rs 4.26 compared to Rs 4.12 for previous quarter ended Sep 2021 and Rs -0.76 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.53 cr for period ended TTM vis-vis sales of Rs 0.3 cr for the period ended Mar 2021, a healthy growth of 43.4%. The 3 year sales cagr stood at 0.6%.
Operating margins shrank to -143.4% for period ended TTM vis-vis 20.0% for period ended Mar 2021, contraction of 16340.0 bps.
Net Profit reported at Rs 4.25 cr for period ended TTM vis-vis sales of Rs -0.34 cr for the period ended Mar 2021, rising 0%.
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 -15% on a 1 Year basis vis-vis a return of 36% over the last 3 Years. – The compounded sales growth on a TTM bassis is 18% vis-vis a compounded sales growth of -12% over the last 3 Years. – The compounded profit growth on a TTM basis is 1830% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 39.23% vis-vis 39.23% for Jun 2021
Conclusion
– – The company has delivered a poor sales growth of -15.59% over past five years.
– has a low return on equity of -1.59% for last 3 years.
-Earnings include an other income of Rs.3.44 Cr.
-Promoter holding has decreased over last 3 years: -12.77%
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 64.1 and is trading at 52.7. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
