Mehabe score: 5 G Factor: 3 Piotski Score: 7 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 3 and Piotski score of 7.
Description
Almondz Global Securities is engaged in the business of providing professional advisory and consultancy services in the areas of equity and debt capital markets, private equity and M&A, infrastructure advisory, equity broking & wealth management, debt portfolio management services and distribution.Site:ALMONDZMain Symbol:ALMONDZ
Stock trades at 124.0, above its 50dma 77.81. It also trades above its 200dma 50.19. The stock remains bullish on techicals
The 52 week high is at 107.20 and the 52week low is at 10.27
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has delivered good profit growth of 130.94% CAGR over last 5 years
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 4.31% over past five years.
-Tax rate seems low
– has a low return on equity of 6.82% for last 3 years.
-Earnings include an other income of Rs.20.03 Cr.
– has high debtors of 160.06 days.
Competition
– The industry trades at a mean P/E of 22.3x. SBI Cards trades at the industry’s max P/E of 98.91x. ALMONDZ trades at a P/E of 13.1x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 7.0. ALMONDZ has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is -0.0%. The max 1- month return was given by Muthoot Finance: a return of 10.32 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 18.72 cr compared to Rs 15.21 cr for period ended Sep 2020, a rise of 23.1%
Operating Profits reported at Rs 5.52 cr for period ended Sep 2021 vis-vis 2.26 for period ended Sep 2020 .
Operating Margins expanded 1462.9 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 3.12 compared to Rs 2.14 for previous quarter ended Jun 2021 and Rs 1.76 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 68.0 cr for period ended TTM vis-vis sales of Rs 63.0 cr for the period ended Mar 2021, a growth of 7.4%. The 3 year sales cagr stood at -3.2%.
Operating margins expanded to 19.0% for period ended TTM vis-vis 14.0% for period ended Mar 2021, expansion of 500.0 bps.
Net Profit reported at Rs 24.0 cr for period ended TTM vis-vis sales of Rs 18.0 cr for the period ended Mar 2021, rising 25.0%.
Company recorded a healthy Net Profit CAGR of 58.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 12.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 853% on a 1 Year basis vis-vis a return of 70% over the last 3 Years. – The compounded sales growth on a TTM bassis is 22% vis-vis a compounded sales growth of -5% over the last 3 Years. – The compounded profit growth on a TTM basis is 211% vis-vis a compounded profit growth of 45% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.56% vis-vis 0.0% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 41.14% vis-vis 41.71% for Jun 2021
Conclusion
– is almost debt free.
– has delivered good profit growth of 130.94% CAGR over last 5 years – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 4.31% over past five years.
-Tax rate seems low
– has a low return on equity of 6.82% for last 3 years.
-Earnings include an other income of Rs.20.03 Cr.
– has high debtors of 160.06 days.
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 77.81 and is trading at 124.0 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
