Mehabe score: 5 G Factor: 6 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 6 and Piotski score of 4.
Description
Lohia Securities is engaged in the business of share trading and share broking and its related services.(Source : 201903 Annual Report Page No:88)Site:590082Main Symbol:LOHIASEC
Stock trades at 77.6, above its 50dma 67.72. It also trades above its 200dma 63.49. The stock remains bullish on techicals
The 52 week high is at 87.00 and the 52week low is at 30.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.98 times its book value
– is expected to give good quarter
– has delivered good profit growth of 128.44% CAGR over last 5 years
Weakness
– has a low return on equity of 12.27% for last 3 years.
-Contingent liabilities of Rs.21.93 Cr.
Competition
– The industry trades at a mean P/E of 25.0x. SBI Cards trades at the industry’s max P/E of 94.5x. 590082 trades at a P/E of 4.58x
– Industry’s mean G-Factor is 4.8 while the mean Piotski score is 6.0. 590082 has a G-Factor of 6 and Piotski scoreof 4.
– Average 1 month return for industry is 0.2%. The max 1- month return was given by Bajaj Holdings: a return of 11.35 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 59.93 cr compared to Rs 18.54 cr for period ended Mar 2020, a rise of 223.2%
Operating Profits reported at Rs 2.09 cr for period ended Mar 2021 vis-vis 3.97 for period ended Mar 2020 .
Operating Margins contracted -1792.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -2.29 compared to Rs 4.15 for previous quarter ended Dec 2020 and Rs 2.69 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 132.0 cr for period ended Mar 2021 vis-vis sales of Rs 75.0 cr for the period ended Mar 2020, a healthy growth of 43.2%. The 3 year sales cagr stood at 28.6%.
Operating margins shrank to 10.0% for period ended Mar 2021 vis-vis 13.0% for period ended Mar 2020, contraction of 300.0 bps.
Net Profit reported at Rs 8.0 cr for period ended Mar 2021 vis-vis sales of Rs 4.0 cr for the period ended Mar 2020, rising 50.0%.
Company recorded a healthy Net Profit CAGR of 58.7% 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 21.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 104% on a 1 Year basis vis-vis a return of 14% over the last 3 Years. – The compounded sales growth on a TTM bassis is 75% vis-vis a compounded sales growth of 28% over the last 3 Years. – The compounded profit growth on a TTM basis is 90% vis-vis a compounded profit growth of 63% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 27.2% vis-vis 27.2% for Mar 2021
Conclusion
– Stock is trading at 0.98 times its book value
– is expected to give good quarter
– has delivered good profit growth of 128.44% CAGR over last 5 years – has a low return on equity of 12.27% for last 3 years.
-Contingent liabilities of Rs.21.93 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 67.72 and is trading at 77.6 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
