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
Inditrade Capital is a During the previous year, the company had sold its principal operating business of equity broking. The company continues to hold investments in subsidiaries engaged in varied businesses.Site:532745Main Symbol:INDICAP
Stock trades at 45.8, above its 50dma 37.55. It also trades above its 200dma 34.71. The stock remains bullish on techicals
The 52 week high is at 49.75 and the 52week low is at 21.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.80 times its book value
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 6.75% for last 3 years.
-Promoters have pledged 39.50% of their holding.
Competition
– The industry trades at a mean P/E of 24.5x. SBI Cards trades at the industry’s max P/E of 93.15x. 532745 trades at a P/E of 18.0x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 6.0. 532745 has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 2.1%. The max 1- month return was given by Inditrade Cap.: a return of 23.45 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 26.12 cr compared to Rs 43.6 cr for period ended Mar 2020, a fall of 40.1%
Operating Profits reported at Rs 6.02 cr for period ended Mar 2021 vis-vis 12.82 for period ended Mar 2020 .
Operating Margins contracted -635.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.18 compared to Rs 0.75 for previous quarter ended Dec 2020 and Rs 0.78 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 178.0 cr for period ended Mar 2021 vis-vis sales of Rs 132.0 cr for the period ended Mar 2020, a healthy growth of 25.8%. The 3 year sales cagr stood at 33.4%.
Operating margins shrank to 22.0% for period ended Mar 2021 vis-vis 40.0% for period ended Mar 2020, contraction of 1800.0 bps.
Net Profit reported at Rs 6.0 cr for period ended Mar 2021 vis-vis sales of Rs 9.0 cr for the period ended Mar 2020, falling 50.0%.
Company reported a poor Net Profit CAGR of -12.6% 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 5.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 74% on a 1 Year basis vis-vis a return of -13% over the last 3 Years. – The compounded sales growth on a TTM bassis is 35% vis-vis a compounded sales growth of 34% over the last 3 Years. – The compounded profit growth on a TTM basis is -36% vis-vis a compounded profit growth of -11% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.19% vis-vis 0.19% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.9% vis-vis 25.9% for Dec 2020
Conclusion
– Stock is trading at 0.80 times its book value
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
– has a low return on equity of 6.75% for last 3 years.
-Promoters have pledged 39.50% of their holding.
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 37.55 and is trading at 45.8 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
