Mehabe score: 3 G Factor: 2 Piotski Score: 7 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 2 and Piotski score of 7.
Description
India Home Loans is engaged in a housing finance company incorporated under the Companies Act, 1956 and registered with National Housing Bank (NHB) for carrying out the business of housing finance.(Source : 201903 Annual Report Page No: 69)Site:530979
Market Cap:
Rs 69.3 cr
Price:
48.5
Trading pe:
34.0x
Book-value:
26.8/share
Div yield:
0.31 %
Earning yield:
10.01%
Face-value:
10.0/share
52week high:
54.00
52week low:
27.20
Technical Analysis
Stock trades at 48.5, above its 50dma 45.1. It also trades above its 200dma 42.96. The stock remains bullish on techicals
The 52 week high is at 54.00 and the 52week low is at 27.20
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-Promoter holding is low: 38.58%
– has a low return on equity of 7.59% for last 3 years.
Competition
– The industry trades at a mean P/E of 22.9x. AAVAS Financiers trades at the industry’s max P/E of 68.36x. 530979 trades at a P/E of 34.0x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 8.0. 530979 has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 28.4%. The max 1- month return was given by PNB Housing: a return of 102.59 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 7.32 cr compared to Rs 8.27 cr for period ended Mar 2020, a fall of 11.5%
Operating Profits reported at Rs 1.76 cr for period ended Mar 2021 vis-vis 1.4 for period ended Mar 2020 .
Operating Margins expanded 711.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.51 compared to Rs 0.13 for previous quarter ended Dec 2020 and Rs 1.15 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 31.13 cr for period ended Mar 2021 vis-vis sales of Rs 32.57 cr for the period ended Mar 2020, a fall of 4.6%. The 3 year sales cagr stood at 23.1%.
Operating margins shrank to 1.72% for period ended Mar 2021 vis-vis 3.7% for period ended Mar 2020, contraction of 198.0 bps.
Net Profit reported at Rs 1.12 cr for period ended Mar 2021 vis-vis sales of Rs 2.8 cr for the period ended Mar 2020, falling 150.0%.
Company reported a poor Net Profit CAGR of -27.7% 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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 54% on a 1 Year basis vis-vis a return of -16% over the last 3 Years. – The compounded sales growth on a TTM bassis is 0% vis-vis a compounded sales growth of 77% over the last 3 Years. – The compounded profit growth on a TTM basis is 84% vis-vis a compounded profit growth of 41% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 36.84% vis-vis 36.84% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-Promoter holding is low: 38.58%
– has a low return on equity of 7.59% 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 45.1 and is trading at 48.5 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
