Mehabe score: 6 G Factor: 7 Piotski Score: 6 The stock has a rating . 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 7 and Piotski score of 6.
Description
Sonal Mercantile is a NBFC and is engaged mainly in the business of providing Loans & Advances and also to make investment in both quoted and unquoted securities.(Source : 201903 Annual Report Page No: 26)Site:538943Main Symbol:SONAL
Stock trades at 20.3, above its 50dma 19.99. It also trades above its 200dma 19.28. The stock remains bullish on techicals
The 52 week high is at 36.10 and the 52week low is at 12.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.16 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-Promoter holding is low: 24.92%
Competition
– The industry trades at a mean P/E of 21.2x. SBI Cards trades at the industry’s max P/E of 106.82x. 538943 trades at a P/E of 2.08x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 6.0. 538943 has a G-Factor of 7 and Piotski scoreof 6.
– Average 1 month return for industry is 1.7%. The max 1- month return was given by Bajaj Finserv: a return of 15.63 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 5.07 cr compared to Rs 4.51 cr for period ended Jun 2020, a rise of 12.4%
Operating Profits reported at Rs 4.94 cr for period ended Jun 2021 vis-vis 4.22 for period ended Jun 2020 .
Operating Margins expanded 386.6 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 2.54 compared to Rs 2.86 for previous quarter ended Mar 2021 and Rs 2.35 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 19.0 cr for period ended TTM vis-vis sales of Rs 19.0 cr for the period ended Mar 2021, The 3 year sales cagr stood at 68.1%.
Operating margins expanded to 97.0% for period ended TTM vis-vis 96.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 14.0 cr for period ended TTM vis-vis sales of Rs 14.0 cr for the period ended Mar 2021,
Company recorded a healthy Net Profit CAGR of 40.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -59.0 cr for period ended Mar 2020
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 8.0% compared to 0% over the last 3 Years. – The stock has given a return of -41% on a 1 Year basis vis-vis a return of -3% over the last 3 Years. – The compounded sales growth on a TTM bassis is 28% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is 11% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 75.08% vis-vis 75.08% for Mar 2021
Conclusion
– Stock is trading at 0.16 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-Promoter holding is low: 24.92%
