Mehabe score: 2 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
Capital Trade Links is engaged in the business of advancing loans and financing and is registered as NBFC with Reserve Bank of India.Site:538476Main Symbol:CTL
Stock trades at 5.88, below its 50dma 6.34. However it is trading above its 200dma 5.75. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 6.34.
The 52 week high is at 8.11 and the 52week low is at 3.21
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -3.60%
-Promoter holding is low: 39.90%
– has a low return on equity of 6.96% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 24.8x. SBI Cards trades at the industry’s max P/E of 107.91x. 538476 trades at a P/E of 22.1x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 6.0. 538476 has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 1.4%. The max 1- month return was given by Bajaj Finserv: a return of 10.8 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1.8 cr compared to Rs 0.97 cr for period ended Jun 2020, a rise of 85.6%
Operating Profits reported at Rs 0.92 cr for period ended Jun 2021 vis-vis 0.39 for period ended Jun 2020 .
Operating Margins expanded 1090.5 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.08 compared to Rs 0.01 for previous quarter ended Mar 2021 and Rs 0.05 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6.1 cr for period ended TTM vis-vis sales of Rs 5.26 cr for the period ended Mar 2021, a healthy growth of 13.8%. The 3 year sales cagr stood at 8.8%.
Operating margins expanded to 51.31% for period ended TTM vis-vis 49.43% for period ended Mar 2021, expansion of 188.0 bps.
Net Profit reported at Rs 1.59 cr for period ended TTM vis-vis sales of Rs 1.41 cr for the period ended Mar 2021, rising 11.3%.
Company reported a poor Net Profit CAGR of -0.8% 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 6.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 68% on a 1 Year basis vis-vis a return of 17% over the last 3 Years. – The compounded sales growth on a TTM bassis is 31% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is 56% vis-vis a compounded profit growth of 14% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has risen for the period ended Jun 2021. The Jun 2021 public holding stood at 60.1% vis-vis 56.5% for Mar 2021
Conclusion
– – Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding has decreased over last quarter: -3.60%
-Promoter holding is low: 39.90%
– has a low return on equity of 6.96% for last 3 years.
– might be capitalizing the interest cost
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 6.34 and is trading at 5.88. 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
