Mehabe score: 5 G Factor: 7 Piotski Score: 6 The stock has a rating . 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 7 and Piotski score of 6.
Description
LKP Finance is engaged in the business of Interest & Dividend Income and Profit on sale of Shares and Securities.Site:507912Main Symbol:LKPFIN
Stock trades at 108.0, above its 50dma 102.08. It also trades above its 200dma 91.12. The stock remains bullish on techicals
The 52 week high is at 139.00 and the 52week low is at 46.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.54 times its book value
– is expected to give good quarter
– has delivered good profit growth of 52.35% CAGR over last 5 years
-Debtor days have improved from 213.55 to 27.40 days.
Weakness
– The company has delivered a poor sales growth of -1.47% over past five years.
– has a low return on equity of 11.30% for last 3 years.
Competition
– The industry trades at a mean P/E of 26.3x. SBI Cards trades at the industry’s max P/E of 92.21x. 507912 trades at a P/E of 2.23x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 6.0. 507912 has a G-Factor of 7 and Piotski scoreof 6.
– Average 1 month return for industry is 0.5%. The max 1- month return was given by Bajaj Holdings: a return of 8.4 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 20.39 cr compared to Rs 5.85 cr for period ended Mar 2020, a rise of 248.5%
Company reported operating profit of Rs 5.7 cr for period ended Mar 2021, operating profit margin at 28.0 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 6.6 compared to Rs 16.38 for previous quarter ended Dec 2020 and Rs -22.6 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 96.0 cr for period ended Mar 2021 vis-vis sales of Rs 19.0 cr for the period ended Mar 2020, a healthy growth of 80.2%. The 3 year sales cagr stood at 7.2%.
Operating margins expanded to 74.0% for period ended Mar 2021 vis-vis -106.0% for period ended Mar 2020, expansion of 18000.0 bps.
Net Profit reported at Rs 61.0 cr for period ended Mar 2021 vis-vis sales of Rs -23.0 cr for the period ended Mar 2020, rising 137.7%.
Company recorded a healthy Net Profit CAGR of 45.0% 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 31.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 115% on a 1 Year basis vis-vis a return of -17% over the last 3 Years. – The compounded sales growth on a TTM bassis is 395% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 366% vis-vis a compounded profit growth of 46% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 2.08% vis-vis 1.6% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 34.3% vis-vis 34.78% for Dec 2020
Conclusion
– Stock is trading at 0.54 times its book value
– is expected to give good quarter
– has delivered good profit growth of 52.35% CAGR over last 5 years
-Debtor days have improved from 213.55 to 27.40 days. – The company has delivered a poor sales growth of -1.47% over past five years.
– has a low return on equity of 11.30% for last 3 years.
