Mehabe score: 3 G Factor: 4 Piotski Score: 4 The stock has a rating OBSERVE & 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 4 and Piotski score of 4.
Description
Vibrant Global Capital is principally engaged in lending and investing activities.Site:538732
Market Cap:
Rs 119 cr
Price:
52.0
Trading pe:
4.1x
Book-value:
15.0/share
Div yield:
0.00 %
Earning yield:
7.66%
Face-value:
10.0/share
52week high:
57.75
52week low:
15.95
Technical Analysis
Stock trades at 52.0, above its 50dma 41.49. It also trades above its 200dma 34.06. The stock remains bullish on techicals
The 52 week high is at 57.75 and the 52week low is at 15.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 208.36% CAGR over last 5 years
-Promoter holding has increased by 1.06% over last quarter.
Weakness
– Stock is trading at 3.46 times its book value
-The company has delivered a poor sales growth of -9.81% over past five years.
– has a low return on equity of -6.40% for last 3 years.
-Earnings include an other income of Rs.16.84 Cr.
Competition
– The industry trades at a mean P/E of 21.1x. SBI Cards trades at the industry’s max P/E of 93.26x. 538732 trades at a P/E of 4.1x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 7.0. 538732 has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 4.6%. The max 1- month return was given by Muthoot Finance: a return of 19.09 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 61.0 cr compared to Rs 42.0 cr for period ended Mar 2020, a rise of 45.2%
Company reported operating profit of Rs 11.0 cr for period ended Mar 2021, operating profit margin at 18.0 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 6.95 compared to Rs 5.54 for previous quarter ended Dec 2020 and Rs -5.37 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 179.0 cr for period ended Mar 2021 vis-vis sales of Rs 199.0 cr for the period ended Mar 2020, a fall of 11.2%. The 3 year sales cagr stood at -17.1%.
Operating margins expanded to 16.0% for period ended Mar 2021 vis-vis -7.0% for period ended Mar 2020, expansion of 2300.0 bps.
Net Profit reported at Rs 35.0 cr for period ended Mar 2021 vis-vis sales of Rs -24.0 cr for the period ended Mar 2020, rising 0%.
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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 84.0% compared to -6.0% over the last 3 Years. – The stock has given a return of 128% on a 1 Year basis vis-vis a return of -2% over the last 3 Years. – The compounded sales growth on a TTM bassis is -10% vis-vis a compounded sales growth of -17% over the last 3 Years. – The compounded profit growth on a TTM basis is 218% vis-vis a compounded profit growth of 390% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 28.85% vis-vis 29.91% for Dec 2020
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 208.36% CAGR over last 5 years
-Promoter holding has increased by 1.06% over last quarter. – Stock is trading at 3.46 times its book value
-The company has delivered a poor sales growth of -9.81% over past five years.
– has a low return on equity of -6.40% for last 3 years.
-Earnings include an other income of Rs.16.84 Cr.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 41.49 and is trading at 52.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
