Mehabe score: 4 G Factor: 4 Piotski Score: 4 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 4 and Piotski score of 4.
Description
India Finsec is engaged in the Business of financing, Inter Corporate Deposits, Personal Loans, funding against shares and securities and Long against Property (LAP) to the individuals and Body Corporate.Site:535667
Market Cap:
Rs 35.7 cr
Price:
14.3
Trading pe:
13.6x
Book-value:
20.3/share
Div yield:
0.00 %
Earning yield:
12.66%
Face-value:
10.0/share
52week high:
17.85
52week low:
5.71
Technical Analysis
Stock trades at 14.3, below its 50dma 14.66 and below its 200dma 15.53. The stock remains bearish on technicals
The 52 week high is at 17.85 and the 52week low is at 5.71
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.71 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 3.95% for last 3 years.
-Contingent liabilities of Rs.57.00 Cr.
Competition
– The industry trades at a mean P/E of 24.5x. SBI Cards trades at the industry’s max P/E of 92.78x. 535667 trades at a P/E of 13.6x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 7.0. 535667 has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 1.1%. The max 1- month return was given by Muthoot Finance: a return of 12.97 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 5.35 cr compared to Rs 5.06 cr for period ended Mar 2020, a rise of 5.7%
Operating Profits reported at Rs 3.94 cr for period ended Mar 2021 vis-vis 3.59 for period ended Mar 2020 .
Operating Margins expanded 269.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.54 compared to Rs 0.13 for previous quarter ended Dec 2020 and Rs 0.21 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 18.2 cr for period ended TTM vis-vis sales of Rs 18.09 cr for the period ended Mar 2020, a growth of 0.6%. The 3 year sales cagr stood at 37.5%.
Operating margins expanded to 62.8% for period ended TTM vis-vis 50.64% for period ended Mar 2020, expansion of 1216.0 bps.
Net Profit reported at Rs 3.45 cr for period ended TTM vis-vis sales of Rs 1.77 cr for the period ended Mar 2020, rising 48.7%.
Company recorded a healthy Net Profit CAGR of 22.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -3.35 cr for period ended Mar 2020 vis-vis Rs -41.44 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 4.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 77% on a 1 Year basis vis-vis a return of -23% over the last 3 Years. – The compounded sales growth on a TTM bassis is 78% vis-vis a compounded sales growth of 26% over the last 3 Years. – The compounded profit growth on a TTM basis is -3% vis-vis a compounded profit growth of 1% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 52.18% vis-vis 52.18% for Dec 2020
Conclusion
– Stock is trading at 0.71 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 3.95% for last 3 years.
-Contingent liabilities of Rs.57.00 Cr.
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 14.66 and is trading at 14.3. 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
