Mehabe score: 2 G Factor: 2 Piotski Score: 4 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 4.
Description
Bombay Cycle & Motor Agency is engaged in main object undertake business of sales and servicing of motor cars and at present its Automobile division situated at Churchgate is operational for serving of motor cars.(Source : 201903 Annual Report Page No: 62)Site:501430Main Symbol:BOMBCYC
Stock trades at 671.0, above its 50dma 650.79. It also trades above its 200dma 604.9. The stock remains bullish on techicals
The 52 week high is at 787.00 and the 52week low is at 408.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of -13.38% over past five years.
– has a low return on equity of 12.80% for last 3 years.
-Earnings include an other income of Rs.1.60 Cr.
-Debtor days have increased from 76.34 to 144.42 days.
Competition
– The industry trades at a mean P/E of 51.2x. 3M India trades at the industry’s max P/E of 182.8x. 501430 trades at a P/E of 13.4x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 7.0. 501430 has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is 2.8%. The max 1- month return was given by Rain Industries: a return of 35.22 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1.47 cr compared to Rs 1.95 cr for period ended Mar 2020, a fall of 24.6%
Operating Profits reported at Rs 0.24 cr for period ended Mar 2021 vis-vis 0.49 for period ended Mar 2020 .
Operating Margins contracted -880.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 10.0 compared to Rs 17.5 for previous quarter ended Dec 2020 and Rs 15.5 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4.17 cr for period ended Mar 2021 vis-vis sales of Rs 8.46 cr for the period ended Mar 2020, a fall of 102.9%. The 3 year sales cagr stood at -15.1%.
Operating margins shrank to 25.66% for period ended Mar 2021 vis-vis 29.31% for period ended Mar 2020, contraction of 365.0 bps.
Net Profit reported at Rs 2.0 cr for period ended Mar 2021 vis-vis sales of Rs 2.81 cr for the period ended Mar 2020, falling 40.5%.
Company recorded a Net Profit CAGR of 7.9% 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 stock has given a return of 2% on a 1 Year basis vis-vis a return of -6% over the last 3 Years. – The compounded sales growth on a TTM bassis is -51% vis-vis a compounded sales growth of -15% over the last 3 Years. – The compounded profit growth on a TTM basis is -21% vis-vis a compounded profit growth of 7% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.11% vis-vis 25.11% for Mar 2021
Conclusion
– is almost debt free. – The company has delivered a poor sales growth of -13.38% over past five years.
– has a low return on equity of 12.80% for last 3 years.
-Earnings include an other income of Rs.1.60 Cr.
-Debtor days have increased from 76.34 to 144.42 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 650.79 and is trading at 671.0 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
