Mehabe score: 6 G Factor: 2 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 2 and Piotski score of 6.
Description
BFL Asset Finvest is a Non-deposit taking non Systemically Important (NBFC) registered with the Reserve Bank of India (RBI) with effect from 30 July 2007, with a view to provide NBFCs with greater operational flexibility and harmonization of different categories of NBFCs into fewer categories based on the principle of regulation by activity, merged the three categories of NBFCs viz. Asset Finance Companies (AFC), Loan Companies (LCs) and Investment Companies (ICs) into a new category called NBFC – Investment and Credit Company (NBFC-ICC). Accordingly, the Company has been reclassified as NBFC-Investment and Credit Company (NBFCICC). Site:BFLAFL Main Symbol:BFLAFL
Stock trades at 174.0, above its 50dma 159.62. It also trades above its 200dma 106.14. The stock remains bullish on techicals
The 52 week high is at 241.80 and the 52week low is at 74.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Stock is trading at 14.42 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 18.71%
– has a low return on equity of 0.30% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 26.8x. BFL Asset Finves trades at the industry’s max P/E of 179.34x. BFLAFL trades at a P/E of 179.0x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 6.0. BFLAFL has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is -0.3%. The max 1- month return was given by Cholaman.Inv.&Fn: a return of 21.71 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 2.03 cr compared to Rs 0.2 cr for period ended Dec 2020, a rise of 915.0% .
vis-vis 0.52 for period ended Dec 2020 .
Operating Margins contracted -25310.3 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.14 cr for period ended Dec 2021 and operating profit margin at 6.9 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.08 compared to Rs -0.72 for previous quarter ended Sep 2021 and Rs 0.37 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2.89 cr for period ended TTM vis-vis sales of Rs 1.33 cr for the period ended Mar 2021, a healthy growth of 54.0%. The 3 year sales cagr stood at -22.2%.
Operating margins shrank to 35.29% for period ended TTM vis-vis 51.88% for period ended Mar 2021, contraction of 1659.0 bps.
Net Profit reported at Rs 0.69 cr for period ended TTM vis-vis sales of Rs 0.01 cr for the period ended Mar 2021, rising 98.6%.
Company recorded a healthy Net Profit CAGR of 105.1% 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 5.44 cr for period ended Mar 2021 vis-vis Rs -2.94 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 107% on a 1 Year basis vis-vis a return of 31% over the last 3 Years. – The compounded sales growth on a TTM bassis is -175% vis-vis a compounded sales growth of 33% over the last 3 Years. – The compounded profit growth on a TTM basis is -70% vis-vis a compounded profit growth of -31% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 81.29% vis-vis 81.29% for Sep 2021
Conclusion
– has reduced debt. – Stock is trading at 14.42 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 18.71%
– has a low return on equity of 0.30% for last 3 years.
-‘s cost of borrowing seems high
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 159.62 and is trading at 174.0 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
