Mehabe score: 5 G Factor: 5 Piotski Score: 3 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 5 and Piotski score of 3.
Description
HB Portfolio is engaged in Dealing in Securities & other Financial Assets.(Source : 201903 Annual Report Page No: 13)Site:532333
Market Cap:
Rs 35.4 cr
Price:
32.8
Trading pe:
x
Book-value:
133/share
Div yield:
0.00 %
Earning yield:
-14.50%
Face-value:
10.0/share
52week high:
33.05
52week low:
13.10
Technical Analysis
Stock trades at 32.8, above its 50dma 25.13. It also trades above its 200dma 21.05. The stock remains bullish on techicals
The 52 week high is at 33.05 and the 52week low is at 13.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.25 times its book value
Weakness
– has low interest coverage ratio.
– has a low return on equity of 1.07% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 23.1x. SBI Cards trades at the industry’s max P/E of 92.94x. 532333 trades at a P/E of x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 7.0. 532333 has a G-Factor of 5 and Piotski scoreof 3.
– Average 1 month return for industry is 8.0%. The max 1- month return was given by HB Portfolio: a return of 36.88 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 10.15 cr compared to Rs 1.87 cr for period ended Mar 2020, a rise of 442.8%
Company reported operating profit of Rs 2.01 cr for period ended Mar 2021, operating profit margin at 19.8 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 1.03 compared to Rs 1.86 for previous quarter ended Dec 2020 and Rs -6.36 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 21.47 cr for period ended Mar 2021 vis-vis sales of Rs 14.61 cr for the period ended Mar 2020, a healthy growth of 32.0%. The 3 year sales cagr stood at -12.0%.
Operating margins expanded to 23.33% for period ended Mar 2021 vis-vis -34.7% for period ended Mar 2020, expansion of 5803.0 bps.
Net Profit reported at Rs 3.55 cr for period ended Mar 2021 vis-vis sales of Rs -3.4 cr for the period ended Mar 2020, rising 195.8%.
Company reported a poor Net Profit CAGR of -31.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -10.68 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 119% 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 -16% vis-vis a compounded sales growth of 64% over the last 3 Years. – The compounded profit growth on a TTM basis is -127% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 38.54% vis-vis 38.54% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.25 times its book value – has low interest coverage ratio.
– has a low return on equity of 1.07% for last 3 years.
-‘s cost of borrowing seems high
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 25.13 and is trading at 32.8 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
