Mehabe score: 5 G Factor: 3 Piotski Score: 5 The stock has a rating SELL. 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 5.
Description
KIFS Financial Services offers capital market products like margin trading, loan against shares (LAS) and funding primary market issues for the retail investors.Site:535566
Market Cap:
Rs 41.4 cr
Price:
38.3
Trading pe:
15.3x
Book-value:
30.9/share
Div yield:
3.26 %
Earning yield:
8.26%
Face-value:
10.0/share
52week high:
72.50
52week low:
33.45
Technical Analysis
Stock trades at 38.3, below its 50dma 39.04 and below its 200dma 43.7. The stock remains bearish on technicals
The 52 week high is at 72.50 and the 52week low is at 33.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is providing a good dividend yield of 3.26%.
– has been maintaining a healthy dividend payout of 35.05%
Weakness
– has low interest coverage ratio.
– has a low return on equity of 11.32% for last 3 years.
Competition
– The industry trades at a mean P/E of 22.4x. SBI Cards trades at the industry’s max P/E of 92.94x. 535566 trades at a P/E of 15.3x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 7.0. 535566 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 3.5%. The max 1- month return was given by Muthoot Finance: a return of 19.35 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 9.7 cr compared to Rs 4.29 cr for period ended Mar 2020, a rise of 126.1%
Operating Profits reported at Rs 9.58 cr for period ended Mar 2021 vis-vis 4.09 for period ended Mar 2020 .
Operating Margins expanded 342.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.69 compared to Rs 0.37 for previous quarter ended Dec 2020 and Rs 0.7 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 20.94 cr for period ended TTM vis-vis sales of Rs 15.59 cr for the period ended Mar 2020, a healthy growth of 25.5%. The 3 year sales cagr stood at 51.3%.
Operating margins expanded to 97.76% for period ended TTM vis-vis 95.32% for period ended Mar 2020, expansion of 244.0 bps.
Net Profit reported at Rs 3.78 cr for period ended TTM vis-vis sales of Rs 3.94 cr for the period ended Mar 2020, falling 4.2%.
Company recorded a Net Profit CAGR of 8.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1.87 cr for period ended Mar 2020 vis-vis Rs 0.32 cr for period ended Mar 2019
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 13.0% compared to 11.0% over the last 3 Years. – The stock has given a return of -50% on a 1 Year basis vis-vis a return of -22% over the last 3 Years. – The compounded sales growth on a TTM bassis is 17% vis-vis a compounded sales growth of 23% over the last 3 Years. – The compounded profit growth on a TTM basis is -32% vis-vis a compounded profit growth of 6% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.59% vis-vis 25.59% for Dec 2020
Conclusion
– Stock is providing a good dividend yield of 3.26%.
– has been maintaining a healthy dividend payout of 35.05% – has low interest coverage ratio.
– has a low return on equity of 11.32% for last 3 years.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 39.04 and is trading at 38.3. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
