Mehabe score: 5 G Factor: 5 Piotski Score: 7 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 7.
Description
Nalin Lease Finance is a Non-Banking Finance Company (‘NBFC’), which provides a wide range of fund based services including gold loans, vehicle loans, business loans etc.Site:531212Main Symbol:NALINLEA
Stock trades at 27.6, above its 50dma 26.96. It also trades above its 200dma 22.75. The stock remains bullish on techicals
The 52 week high is at 34.00 and the 52week low is at 14.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.81 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 11.17% for last 3 years.
Competition
– The industry trades at a mean P/E of 27.3x. SBI Cards trades at the industry’s max P/E of 109.32x. 531212 trades at a P/E of 7.19x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 7.0. 531212 has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 4.7%. The max 1- month return was given by Bajaj Finserv: a return of 20.21 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1.14 cr compared to Rs 0.98 cr for period ended Jun 2020, a rise of 16.3%
Operating Profits reported at Rs 0.74 cr for period ended Jun 2021 vis-vis 0.37 for period ended Jun 2020 .
Operating Margins expanded 2715.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.76 compared to Rs 0.88 for previous quarter ended Mar 2021 and Rs 0.34 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 5.05 cr for period ended TTM vis-vis sales of Rs 4.89 cr for the period ended Mar 2021, a growth of 3.2%. The 3 year sales cagr stood at 4.0%.
Operating margins expanded to 77.23% for period ended TTM vis-vis 72.19% for period ended Mar 2021, expansion of 504.0 bps.
Net Profit reported at Rs 2.8 cr for period ended TTM vis-vis sales of Rs 2.52 cr for the period ended Mar 2021, rising 10.0%.
Company recorded a healthy Net Profit CAGR of 17.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 12.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 107% on a 1 Year basis vis-vis a return of 18% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is 37% vis-vis a compounded profit growth of 35% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 29.85% vis-vis 30.07% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.81 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 11.17% for last 3 years.
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 26.96 and is trading at 27.6, thus bullish price action wise.
