Mehabe score: 0 G Factor: 6 Piotski Score: 6 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 6 and Piotski score of 6.
Description
Shriram Asset Mgt. Company is engaged in the Business of Financial and related services.Site:531359Main Symbol:SRAMSET
Stock trades at 87.6, below its 50dma 89.67. However it is trading above its 200dma 82.77. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 89.67.
The 52 week high is at 110.00 and the 52week low is at 40.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.95 times its book value
Weakness
– has low interest coverage ratio.
– has a low return on equity of -3.01% for last 3 years.
Competition
– The industry trades at a mean P/E of 27.1x. SBI Cards trades at the industry’s max P/E of 110.2x. 531359 trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 6.0. 531359 has a G-Factor of 6 and Piotski scoreof 6.
– Average 1 month return for industry is 4.6%. The max 1- month return was given by Bajaj Finserv: a return of 19.89 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1.28 cr compared to Rs 1.14 cr for period ended Jun 2020, a rise of 12.3%
The EPS for Jun 2021 was Rs 0.1 compared to Rs 0.48 for previous quarter ended Mar 2021 and Rs -0.12 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4.71 cr for period ended TTM vis-vis sales of Rs 5.3 cr for the period ended Mar 2021, a fall of 12.5%. The 3 year sales cagr stood at -8.9%.
Operating margins shrank to -15.71% for period ended TTM vis-vis -3.58% for period ended Mar 2021, contraction of 1213.0 bps.
Net Profit reported at Rs -0.37 cr for period ended TTM vis-vis sales of Rs -0.49 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 stock has given a return of 25% on a 1 Year basis vis-vis a return of -2% over the last 3 Years. – The compounded sales growth on a TTM bassis is 61% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 82% vis-vis a compounded profit growth of 9% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 31.33% vis-vis 31.33% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.95 times its book value – has low interest coverage ratio.
– has a low return on equity of -3.01% 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 below its 50 DMA 89.67 and is trading at 87.6. Shows a near term lack of buying interest.
