Mehabe score: 6 G Factor: 5 Piotski Score: 5 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 5 and Piotski score of 5.
Description
B N Rathi Securities is engaged in the Business of broking in securities.Site:523019Main Symbol:BNRSEC
Stock trades at 37.3, above its 50dma 32.14. It also trades above its 200dma 26.62. The stock remains bullish on techicals
The 52 week high is at 40.40 and the 52week low is at 15.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.76 times its book value
– has been maintaining a healthy dividend payout of 28.97%
-Promoter holding has increased by 1.15% over last quarter.
Weakness
– The company has delivered a poor sales growth of 5.23% over past five years.
– has a low return on equity of 10.18% for last 3 years.
-Contingent liabilities of Rs.20.65 Cr.
-Earnings include an other income of Rs.3.39 Cr.
Competition
– The industry trades at a mean P/E of 24.9x. SBI Cards trades at the industry’s max P/E of 94.34x. 523019 trades at a P/E of 5.16x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 6.0. 523019 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 1.1%. The max 1- month return was given by Bajaj Holdings: a return of 11.43 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 7.42 cr compared to Rs 6.07 cr for period ended Mar 2020, a rise of 22.2%
Operating Profits reported at Rs 0.4 cr for period ended Mar 2021 vis-vis 0.23 for period ended Mar 2020 .
Operating Margins expanded 160.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.97 compared to Rs 1.53 for previous quarter ended Dec 2020 and Rs 1.09 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 29.73 cr for period ended Mar 2021 vis-vis sales of Rs 26.42 cr for the period ended Mar 2020, a healthy growth of 11.1%. The 3 year sales cagr stood at 0.1%.
Operating margins shrank to 9.69% for period ended Mar 2021 vis-vis 11.51% for period ended Mar 2020, contraction of 182.0 bps.
Net Profit reported at Rs 3.64 cr for period ended Mar 2021 vis-vis sales of Rs 1.7 cr for the period ended Mar 2020, rising 53.3%.
Company recorded a healthy Net Profit CAGR of 10.2% 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 33.61 cr for period ended Mar 2021 vis-vis Rs 13.46 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 16.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 89% on a 1 Year basis vis-vis a return of -1% over the last 3 Years. – The compounded sales growth on a TTM bassis is 13% vis-vis a compounded sales growth of 0% over the last 3 Years. – The compounded profit growth on a TTM basis is 114% vis-vis a compounded profit growth of 10% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 46.52% vis-vis 47.67% for Dec 2020
Conclusion
– Stock is trading at 0.76 times its book value
– has been maintaining a healthy dividend payout of 28.97%
-Promoter holding has increased by 1.15% over last quarter. – The company has delivered a poor sales growth of 5.23% over past five years.
– has a low return on equity of 10.18% for last 3 years.
-Contingent liabilities of Rs.20.65 Cr.
-Earnings include an other income of Rs.3.39 Cr.
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 32.14 and is trading at 37.3, thus bullish price action wise.
