Mehabe score: 3 G Factor: 3 Piotski Score: 4 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 4.
Description
NCL Research and Financial Services is engaged in Business of NBFC Activities (Financing) & Trading / Investment in Shares & Securities.Site:530557
Market Cap:
Rs 11.9 cr
Price:
0.82
Trading pe:
20.2x
Book-value:
4.28/share
Div yield:
0.00 %
Earning yield:
7.56%
Face-value:
2.00/share
52week high:
0.81
52week low:
0.19
Technical Analysis
Stock trades at 0.82, above its 50dma 0.55. It also trades above its 200dma 0.42. The stock remains bullish on techicals
The 52 week high is at 0.81 and the 52week low is at 0.19
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.19 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -5.47% over past five years.
-Promoter holding is low: 2.79%
– has a low return on equity of 0.11% for last 3 years.
– has high debtors of 262.86 days.
Competition
– The industry trades at a mean P/E of 21.7x. SBI Cards trades at the industry’s max P/E of 89.25x. 530557 trades at a P/E of 20.2x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 7.0. 530557 has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 11.1%. The max 1- month return was given by NCl Res. & Finl.: a return of 70.83 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 0.23 cr compared to Rs 0.27 cr for period ended Mar 2020, a fall of 14.8%
Company reported negative operating profit of Rs -0.77 cr for period ended Mar 2021. For same period last year, operating profit was 0.1
The EPS for Mar 2021 was Rs -0.03 compared to Rs 0.01 for previous quarter ended Dec 2020 and Rs 0.01 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1.85 cr for period ended Mar 2021 vis-vis sales of Rs 2.43 cr for the period ended Mar 2020, a fall of 31.4%. The 3 year sales cagr stood at -13.0%.
Operating margins expanded to 0.54% for period ended Mar 2021 vis-vis 0.41% for period ended Mar 2020, expansion of 13.0 bps.
Net Profit reported at Rs 0.01 cr for period ended Mar 2021 vis-vis sales of Rs 0.02 cr for the period ended Mar 2020, falling 100.0%.
Company reported a poor Net Profit CAGR of -47.7% 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 173% 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 -35% vis-vis a compounded sales growth of -31% over the last 3 Years. – The compounded profit growth on a TTM basis is 321% vis-vis a compounded profit growth of 34% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 97.21% vis-vis 97.21% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.19 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -5.47% over past five years.
-Promoter holding is low: 2.79%
– has a low return on equity of 0.11% for last 3 years.
– has high debtors of 262.86 days.
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 0.55 and is trading at 0.82 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
