Mehabe score: 4 G Factor: 4 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 4 and Piotski score of 4.
Description
Comfort Intech is engaged in the business of in the field of trading of various goods and commodities.Site:531216Main Symbol:COMFINTE
Stock trades at 27.7, above its 50dma 19.89. It also trades above its 200dma 14.13. The stock remains bullish on techicals
The 52 week high is at 25.65 and the 52week low is at 4.56
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.81 times its book value
– is expected to give good quarter
-Promoter holding has increased by 0.87% over last quarter.
Weakness
– has a low return on equity of 2.63% for last 3 years.
– has high debtors of 173.59 days.
Competition
– The industry trades at a mean P/E of 39.0x. United Breweries trades at the industry’s max P/E of 131.02x. 531216 trades at a P/E of 7.26x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 9.0. 531216 has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 21.8%. The max 1- month return was given by Tilaknagar Inds.: a return of 77.35 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 41.29 cr compared to Rs 15.33 cr for period ended Sep 2020, a rise of 169.3%
Operating Profits reported at Rs 1.43 cr for period ended Sep 2021 vis-vis 1.38 for period ended Sep 2020 .
Operating Margins contracted -553.9 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.46 compared to Rs 1.63 for previous quarter ended Jun 2021 and Rs 0.98 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 124.0 cr for period ended TTM vis-vis sales of Rs 85.0 cr for the period ended Mar 2021, a healthy growth of 31.5%. The 3 year sales cagr stood at 32.8%.
Operating margins shrank to 5.0% for period ended TTM vis-vis 8.0% for period ended Mar 2021, contraction of 300.0 bps.
Net Profit reported at Rs 11.0 cr for period ended TTM vis-vis sales of Rs 10.0 cr for the period ended Mar 2021, rising 0%.
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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 454% on a 1 Year basis vis-vis a return of 36% over the last 3 Years. – The compounded sales growth on a TTM bassis is 85% vis-vis a compounded sales growth of 56% over the last 3 Years. – The compounded profit growth on a TTM basis is 1198% vis-vis a compounded profit growth of 41% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 1.49% vis-vis 1.49% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 43.46% vis-vis 44.33% for Jun 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.81 times its book value
– is expected to give good quarter
-Promoter holding has increased by 0.87% over last quarter. – has a low return on equity of 2.63% for last 3 years.
– has high debtors of 173.59 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 19.89 and is trading at 27.7 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
