Mehabe score: 8 G Factor: 3 Piotski Score: 8 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 8.
Description
Cil Securities is engaged in the business of Security Dealing and Stock Activities.Site:530829Main Symbol:CILSEC
Stock trades at 21.6, above its 50dma 15.71. It also trades above its 200dma 13.23. The stock remains bullish on techicals
The 52 week high is at 22.29 and the 52week low is at 8.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.50 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 4.34% over past five years.
– has a low return on equity of 1.55% for last 3 years.
-Contingent liabilities of Rs.17.64 Cr.
– has high debtors of 164.22 days.
Competition
– The industry trades at a mean P/E of 16.3x. Indbank Merchant trades at the industry’s max P/E of 30.67x. 530829 trades at a P/E of 14.4x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 8.0. 530829 has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is 46.3%. The max 1- month return was given by Indbank Merchant: a return of 69.58 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1.96 cr compared to Rs 1.26 cr for period ended Jun 2020, a rise of 55.6%
Operating Profits reported at Rs 0.6 cr for period ended Jun 2021 vis-vis 0.21 for period ended Jun 2020 .
Operating Margins expanded 1394.6 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.86 compared to Rs 0.62 for previous quarter ended Mar 2021 and Rs 0.26 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6.39 cr for period ended TTM vis-vis sales of Rs 5.69 cr for the period ended Mar 2021, a healthy growth of 11.0%. The 3 year sales cagr stood at 14.6%.
Operating margins expanded to 23.32% for period ended TTM vis-vis 21.97% for period ended Mar 2021, expansion of 135.0 bps.
Net Profit reported at Rs 1.06 cr for period ended TTM vis-vis sales of Rs 0.75 cr for the period ended Mar 2021, rising 29.2%.
Company recorded a healthy Net Profit CAGR of 68.9% 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 5.2 cr for period ended Mar 2021 vis-vis Rs -7.5 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 4.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 131% on a 1 Year basis vis-vis a return of 4% over the last 3 Years. – The compounded sales growth on a TTM bassis is 38% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is 7400% 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 25.0% vis-vis 25.0% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.50 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 4.34% over past five years.
– has a low return on equity of 1.55% for last 3 years.
-Contingent liabilities of Rs.17.64 Cr.
– has high debtors of 164.22 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 15.71 and is trading at 21.6 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
