Mehabe score: 6 G Factor: 5 Piotski Score: 6 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 5 and Piotski score of 6.
Description
5 paisa capital was started in 2007. It is a fintech company having presence mainly in online discounted stock broking, depository services, research, distribution of financial products, and peer-to-peer lending. [1]
Its Promoter is Mr. Nirmal Jain who is also the promoter of IIFL Group. [2]Site:5PAISAMain Symbol:5PAISA
Stock trades at 504.0, above its 50dma 462.47. It also trades above its 200dma 396.44. The stock remains bullish on techicals
The 52 week high is at 580.00 and the 52week low is at 235.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Stock is trading at 9.49 times its book value
-Promoter holding has decreased over last quarter: -4.56%
-Promoter holding is low: 29.97%
– has a low return on equity of -4.16% for last 3 years.
Competition
– The industry trades at a mean P/E of 23.3x. SBI Cards trades at the industry’s max P/E of 116.93x. 5PAISA trades at a P/E of 77.4x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 6.0. 5PAISA has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 3.7%. The max 1- month return was given by Bajaj Finserv: a return of 13.28 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 67.93 cr compared to Rs 52.35 cr for period ended Sep 2020, a rise of 29.8%
Operating Profits reported at Rs 7.35 cr for period ended Sep 2021 vis-vis 11.58 for period ended Sep 2020 .
Operating Margins contracted -1130.0 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.47 compared to Rs 2.45 for previous quarter ended Jun 2021 and Rs 1.11 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 227.0 cr for period ended TTM vis-vis sales of Rs 195.0 cr for the period ended Mar 2021, a healthy growth of 14.1%. The 3 year sales cagr stood at 55.0%.
Operating margins shrank to 19.0% for period ended TTM vis-vis 23.0% for period ended Mar 2021, contraction of 400.0 bps.
Net Profit reported at Rs 18.0 cr for period ended TTM vis-vis sales of Rs 15.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 2.0 cr for period ended Mar 2021 vis-vis Rs -237.0 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 10.0% compared to -4.0% over the last 3 Years. – The stock has given a return of 45% on a 1 Year basis vis-vis a return of 62% over the last 3 Years. – The compounded sales growth on a TTM bassis is 66% vis-vis a compounded sales growth of 115% over the last 3 Years. – The compounded profit growth on a TTM basis is 519% vis-vis a compounded profit growth of 37% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has risen for the period ended Jun 2021. The Jun 2021 fii holding stood at 25.05% vis-vis 17.45% for Mar 2021 – Public shareholding has fallen for the period ended Jun 2021. The Jun 2021 public holding stood at 44.98% vis-vis 48.02% for Mar 2021
Conclusion
– is expected to give good quarter – Stock is trading at 9.49 times its book value
-Promoter holding has decreased over last quarter: -4.56%
-Promoter holding is low: 29.97%
– has a low return on equity of -4.16% 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 462.47 and is trading at 504.0, thus bullish price action wise.
