Mehabe score: 4 G Factor: 3 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 3 and Piotski score of 4.
Description
Joindre Capital Services is engaged in the business of stock broker to execute proprietary trades and also trades on behalf of its clients which include retail customers (including high net worth individuals), mutual funds, and corporate clients.Site:531861
Market Cap:
Rs 37.4 cr
Price:
27.0
Trading pe:
14.6x
Book-value:
44.6/share
Div yield:
2.22 %
Earning yield:
-8.67%
Face-value:
10.0/share
52week high:
30.70
52week low:
12.70
Technical Analysis
Stock trades at 27.0, above its 50dma 21.81. It also trades above its 200dma 18.54. The stock remains bullish on techicals
The 52 week high is at 30.70 and the 52week low is at 12.70
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.61 times its book value
– has been maintaining a healthy dividend payout of 43.36%
Weakness
– The company has delivered a poor sales growth of -4.26% over past five years.
– has a low return on equity of 5.53% for last 3 years.
– has high debtors of 154.20 days.
Competition
– The industry trades at a mean P/E of 24.8x. SBI Cards trades at the industry’s max P/E of 93.17x. 531861 trades at a P/E of 14.6x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 7.0. 531861 has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 6.2%. The max 1- month return was given by Joindre Capital: a return of 38.46 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 8.39 cr compared to Rs 5.72 cr for period ended Mar 2020, a rise of 46.7%
Operating Profits reported at Rs 1.99 cr for period ended Mar 2021 vis-vis 0.86 for period ended Mar 2020 .
Operating Margins expanded 868.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.9 compared to Rs 0.48 for previous quarter ended Dec 2020 and Rs 0.39 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 28.2 cr for period ended Mar 2021 vis-vis sales of Rs 20.83 cr for the period ended Mar 2020, a healthy growth of 26.1%. The 3 year sales cagr stood at -3.7%.
Operating margins expanded to 18.37% for period ended Mar 2021 vis-vis 10.03% for period ended Mar 2020, expansion of 834.0 bps.
Net Profit reported at Rs 3.26 cr for period ended Mar 2021 vis-vis sales of Rs 1.17 cr for the period ended Mar 2020, rising 64.1%.
Company reported a poor Net Profit CAGR of -18.2% 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 2.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 94% on a 1 Year basis vis-vis a return of 3% over the last 3 Years. – The compounded sales growth on a TTM bassis is 24% vis-vis a compounded sales growth of -5% over the last 3 Years. – The compounded profit growth on a TTM basis is 136% vis-vis a compounded profit growth of -40% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 36.29% vis-vis 36.29% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.61 times its book value
– has been maintaining a healthy dividend payout of 43.36% – The company has delivered a poor sales growth of -4.26% over past five years.
– has a low return on equity of 5.53% for last 3 years.
– has high debtors of 154.20 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 21.81 and is trading at 27.0 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
