Mehabe score: 6 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
KBS India is engaged in providing Stock Broking Services.Site:530357Main Symbol:KBSINDIA
Stock trades at 5.89, above its 50dma 4.61. It also trades above its 200dma 4.34. The stock remains bullish on techicals
The 52 week high is at 6.19 and the 52week low is at 3.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.20 times its book value
-Debtor days have improved from 28.91 to 22.64 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -5.59% over past five years.
-Promoter holding is low: 36.53%
– has a low return on equity of 0.36% for last 3 years.
Competition
– The industry trades at a mean P/E of 24.9x. SBI Cards trades at the industry’s max P/E of 107.91x. 530357 trades at a P/E of 13.9x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 6.0. 530357 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 9.8%. The max 1- month return was given by KBS India: a return of 55.0 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.45 cr compared to Rs 0.19 cr for period ended Jun 2020, a rise of 136.8%
Operating Profits reported at Rs 0.17 cr for period ended Jun 2021 vis-vis 0.02 for period ended Jun 2020 .
Operating Margins expanded 2725.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.34 compared to Rs 0.18 for previous quarter ended Mar 2021 and Rs -0.02 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1.55 cr for period ended TTM vis-vis sales of Rs 1.29 cr for the period ended Mar 2021, a healthy growth of 16.8%. The 3 year sales cagr stood at 20.8%.
Operating margins expanded to -18.06% for period ended TTM vis-vis -34.11% for period ended Mar 2021, expansion of 1605.0 bps.
Net Profit reported at Rs 0.36 cr for period ended TTM vis-vis sales of Rs 0.06 cr for the period ended Mar 2021, rising 83.3%.
Company recorded a healthy Net Profit CAGR of 37.0% 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 stock has given a return of 55% on a 1 Year basis vis-vis a return of 14% over the last 3 Years. – The compounded sales growth on a TTM bassis is 55% vis-vis a compounded sales growth of -18% over the last 3 Years. – The compounded profit growth on a TTM basis is -46% vis-vis a compounded profit growth of -46% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 63.47% vis-vis 63.47% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.20 times its book value
-Debtor days have improved from 28.91 to 22.64 days. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -5.59% over past five years.
-Promoter holding is low: 36.53%
– has a low return on equity of 0.36% 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 4.61 and is trading at 5.89 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
