Mehabe score: 8 G Factor: 6 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 6 and Piotski score of 7.
Description
Som Datt Finance Corporation is engaged in engaged in the business of Non Banking Finance Company (NBFC).Site:511571Main Symbol:SODFC
Stock trades at 38.2, above its 50dma 27.49. It also trades above its 200dma 18.98. The stock remains bullish on techicals
The 52 week high is at 44.20 and the 52week low is at 8.96
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 10.32% for last 3 years.
Competition
– The industry trades at a mean P/E of 25.3x. SBI Cards trades at the industry’s max P/E of 94.63x. 511571 trades at a P/E of 8.62x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 7.0. 511571 has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 10.0%. The max 1- month return was given by Som Datt Finance: a return of 71.46 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2.49 cr compared to Rs 0.18 cr for period ended Mar 2020, a rise of 1283.3%
Operating Profits reported at Rs 2.33 cr for period ended Mar 2021 vis-vis 0.07 for period ended Mar 2020 .
Operating Margins expanded 5468.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.37 compared to Rs 1.73 for previous quarter ended Dec 2020 and Rs 0.1 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 5.37 cr for period ended Mar 2021 vis-vis sales of Rs 0.49 cr for the period ended Mar 2020, a healthy growth of 90.9%. The 3 year sales cagr stood at 40.4%.
Operating margins expanded to 90.13% for period ended Mar 2021 vis-vis 6.12% for period ended Mar 2020, expansion of 8401.0 bps.
Net Profit reported at Rs 4.43 cr for period ended Mar 2021 vis-vis sales of Rs 0.06 cr for the period ended Mar 2020, rising 98.6%.
Company recorded a healthy Net Profit CAGR of 380.2% 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 2.93 cr for period ended Mar 2021 vis-vis Rs 2.28 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 27.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 98% on a 1 Year basis vis-vis a return of 118% over the last 3 Years. – The compounded sales growth on a TTM bassis is 996% vis-vis a compounded sales growth of 40% over the last 3 Years. – The compounded profit growth on a TTM basis is 7283% vis-vis a compounded profit growth of 380% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 30.66% vis-vis 30.66% for Mar 2021
Conclusion
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 10.32% for last 3 years.
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 27.49 and is trading at 38.2, thus bullish price action wise.
