Mehabe score: 8 G Factor: 5 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 5 and Piotski score of 7.
Description
Share India Securities Ltd is a financial service provider that uses technology to offer customized capital market tech-based solutions to clients. It offers financial products & personalized services, including equity broking, currency & commodity derivative, depository participant services, mutual fund advisory and distributorship, etc to retail and corporate clients Site:SHAREINDIA Main Symbol:SHAREINDIA
Stock trades at 1282.0, above its 50dma 987.08. It also trades above its 200dma 680.75. The stock remains bullish on techicals
The 52 week high is at 1372.90 and the 52week low is at 164.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
– has delivered good profit growth of 60.68% CAGR over last 5 years
-‘s median sales growth is 25.57% of last 10 years
Weakness
– Stock is trading at 13.25 times its book value
-Promoter holding has decreased over last 3 years: -17.17%
Competition
– The industry trades at a mean P/E of 26.9x. SBI Cards trades at the industry’s max P/E of 77.49x. SHAREINDIA trades at a P/E of 31.6x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. SHAREINDIA has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 6.3%. The max 1- month return was given by Share India Sec.: a return of 27.26 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 161.0 cr compared to Rs 89.0 cr for period ended Dec 2020, a rise of 80.9% .
vis-vis 22.0 for period ended Dec 2020 .
Operating Margins expanded 571.6 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 49.0 cr for period ended Dec 2021 and operating profit margin at 30.4 % for same period.
The EPS for quarter ended Dec 2021 is Rs 11.8 compared to Rs 11.94 for previous quarter ended Sep 2021 and Rs 4.75 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 592.0 cr for period ended TTM vis-vis sales of Rs 383.0 cr for the period ended Mar 2021, a healthy growth of 35.3%. The 3 year sales cagr stood at 44.6%.
Operating margins expanded to 32.0% for period ended TTM vis-vis 27.0% for period ended Mar 2021, expansion of 500.0 bps.
Net Profit reported at Rs 130.0 cr for period ended TTM vis-vis sales of Rs 67.0 cr for the period ended Mar 2021, rising 48.5%.
Company recorded a healthy Net Profit CAGR of 80.8% 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 203.0 cr for period ended Mar 2021 vis-vis Rs 60.0 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 30.0% compared to 24.0% over the last 3 Years. – The stock has given a return of 607% on a 1 Year basis vis-vis a return of 151% over the last 3 Years. – The compounded sales growth on a TTM bassis is 88% vis-vis a compounded sales growth of 40% over the last 3 Years. – The compounded profit growth on a TTM basis is 148% vis-vis a compounded profit growth of 66% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.63% vis-vis 0.2% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 43.84% vis-vis 44.27% for Sep 2021
Conclusion
– has reduced debt.
– is expected to give good quarter
– has delivered good profit growth of 60.68% CAGR over last 5 years
-‘s median sales growth is 25.57% of last 10 years – Stock is trading at 13.25 times its book value
-Promoter holding has decreased over last 3 years: -17.17%
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 987.08 and is trading at 1282.0, thus bullish price action wise.
