Mehabe score: 5 G Factor: 6 Piotski Score: 5 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 6 and Piotski score of 5.
Description
Real Touch Finance is engaged in Business of Providing Loans.Site:538611Main Symbol:RTFL
Stock trades at 11.4, above its 50dma 8.38. It also trades above its 200dma 9.37. The stock remains bullish on techicals
The 52 week high is at 14.43 and the 52week low is at 3.70
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.42 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 3.73% for last 3 years.
Competition
– The industry trades at a mean P/E of 22.7x. SBI Cards trades at the industry’s max P/E of 97.85x. 538611 trades at a P/E of 9.02x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 6.0. 538611 has a G-Factor of 6 and Piotski scoreof 5.
– Average 1 month return for industry is 3.3%. The max 1- month return was given by Real Touch Fin: a return of 27.22 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 0.67 cr compared to Rs 0.56 cr for period ended Sep 2020, a rise of 19.6%
Operating Profits reported at Rs 0.62 cr for period ended Sep 2021 vis-vis 0.52 for period ended Sep 2020 .
Operating Margins contracted -32.0 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.37 compared to Rs 0.35 for previous quarter ended Jun 2021 and Rs 0.31 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2.51 cr for period ended TTM vis-vis sales of Rs 2.27 cr for the period ended Mar 2021, a growth of 9.6%. The 3 year sales cagr stood at 11.3%.
Operating margins expanded to 86.45% for period ended TTM vis-vis 85.46% for period ended Mar 2021, expansion of 99.0 bps.
Net Profit reported at Rs 1.61 cr for period ended TTM vis-vis sales of Rs 1.44 cr for the period ended Mar 2021, rising 10.6%.
Company recorded a healthy Net Profit CAGR of 13.2% 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 4.0% compared to 4.0% over the last 3 Years. – The stock has given a return of 160% 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 12% vis-vis a compounded sales growth of 72% over the last 3 Years. – The compounded profit growth on a TTM basis is 5% vis-vis a compounded profit growth of 236% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 45.88% vis-vis 45.88% for Jun 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.42 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 3.73% 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 above its 50 DMA 8.38 and is trading at 11.4, thus bullish price action wise.
