Mehabe score: 2 G Factor: 3 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 3 and Piotski score of 6.
Description
Ashirwad Capital operates as a provide of investment services and is engaged in transactions of securities and financial services.Site:512247Main Symbol:ASHCAP
Stock trades at 5.03, above its 50dma 4.72. It also trades above its 200dma 3.85. The stock remains bullish on techicals
The 52 week high is at 5.75 and the 52week low is at 1.80
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
-The company has delivered a poor sales growth of 8.10% over past five years.
– has a low return on equity of 6.74% for last 3 years.
Competition
– The industry trades at a mean P/E of 24.8x. SBI Cards trades at the industry’s max P/E of 107.91x. 512247 trades at a P/E of 34.7x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 6.0. 512247 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 3.7%. The max 1- month return was given by Bajaj Finserv: a return of 10.8 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.22 cr compared to Rs 0.35 cr for period ended Jun 2020, a fall of 37.1%
Operating Profits reported at Rs 0.2 cr for period ended Jun 2021 vis-vis 0.33 for period ended Jun 2020 .
Operating Margins contracted -337.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.04 compared to Rs 0.03 for previous quarter ended Mar 2021 and Rs 0.07 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.49 cr for period ended TTM vis-vis sales of Rs 0.62 cr for the period ended Mar 2021, a fall of 26.5%. The 3 year sales cagr stood at -21.4%.
Operating margins shrank to 81.63% for period ended TTM vis-vis 83.87% for period ended Mar 2021, contraction of 224.0 bps.
Net Profit reported at Rs 0.48 cr for period ended TTM vis-vis sales of Rs 0.58 cr for the period ended Mar 2021, falling 20.8%.
Company reported a poor Net Profit CAGR of -11.8% 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 7.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 135% on a 1 Year basis vis-vis a return of 11% over the last 3 Years. – The compounded sales growth on a TTM bassis is 35% vis-vis a compounded sales growth of -7% over the last 3 Years. – The compounded profit growth on a TTM basis is 100% vis-vis a compounded profit growth of -14% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 49.0% vis-vis 49.0% for Mar 2021
Conclusion
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 8.10% over past five years.
– has a low return on equity of 6.74% for last 3 years.
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 4.72 and is trading at 5.03 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
