Mehabe score: 2 G Factor: 5 Piotski Score: 7 The stock has a rating 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 7.
Description
Arnold Holdings is engaged in the field of Corporate Finance, Infrastructure Finance, Mortgage and Gold Loans, Capital Market.Site:537069
Market Cap:
Rs 60.8 cr
Price:
20.2
Trading pe:
23.2x
Book-value:
18.0/share
Div yield:
0.00 %
Earning yield:
5.33%
Face-value:
10.0/share
52week high:
36.70
52week low:
16.20
Technical Analysis
Stock trades at 20.2, below its 50dma 20.51 and below its 200dma 25.37. The stock remains bearish on technicals
The 52 week high is at 36.70 and the 52week low is at 16.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 1.12 times its book value
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -1.83%
-The company has delivered a poor sales growth of -5.98% over past five years.
-Promoter holding is low: 4.75%
– has a low return on equity of 1.44% for last 3 years.
Competition
– The industry trades at a mean P/E of 24.1x. SBI Cards trades at the industry’s max P/E of 93.15x. 537069 trades at a P/E of 23.2x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 7.0. 537069 has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 2.4%. The max 1- month return was given by Muthoot Finance: a return of 16.0 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 18.59 cr compared to Rs 7.88 cr for period ended Mar 2020, a rise of 135.9%
Company reported negative operating profit of Rs -0.23 cr for period ended Mar 2021. For same period last year, operating profit was 2.19
The EPS for Mar 2021 was Rs -0.13 compared to Rs 0.06 for previous quarter ended Dec 2020 and Rs 0.51 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 37.33 cr for period ended Mar 2021 vis-vis sales of Rs 24.14 cr for the period ended Mar 2020, a healthy growth of 35.3%. The 3 year sales cagr stood at 6.8%.
Operating margins shrank to 2.41% for period ended Mar 2021 vis-vis 9.2% for period ended Mar 2020, contraction of 679.0 bps.
Net Profit reported at Rs 0.69 cr for period ended Mar 2021 vis-vis sales of Rs 1.57 cr for the period ended Mar 2020, falling 127.5%.
Company recorded a healthy Net Profit CAGR of 20.9% 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 3.0% compared to 1.0% over the last 3 Years. – The stock has given a return of -35% on a 1 Year basis vis-vis a return of -25% over the last 3 Years. – The compounded sales growth on a TTM bassis is 34% vis-vis a compounded sales growth of -14% over the last 3 Years. – The compounded profit growth on a TTM basis is 162% vis-vis a compounded profit growth of 129% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 95.25% vis-vis 93.42% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 1.12 times its book value
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -1.83%
-The company has delivered a poor sales growth of -5.98% over past five years.
-Promoter holding is low: 4.75%
– has a low return on equity of 1.44% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 20.51 and is trading at 20.2. Shows a near term lack of buying interest.
