Mehabe score: 4 G Factor: 6 Piotski Score: 5 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 6 and Piotski score of 5.
Description
BF Investment is primarily engaged in the business of making investments in group companies.Site:BFINVESTMain Symbol:BFINVEST
Stock trades at 351.0, below its 50dma 368.79. However it is trading above its 200dma 327.64. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 368.79.
The 52 week high is at 445.95 and the 52week low is at 252.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.40 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -55.89% over past five years.
– has a low return on equity of 8.13% for last 3 years.
-Earnings include an other income of Rs.347.17 Cr.
Competition
– The industry trades at a mean P/E of 20.6x. SBI Cards trades at the industry’s max P/E of 106.19x. BFINVEST trades at a P/E of 4.94x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 6.0. BFINVEST has a G-Factor of 6 and Piotski scoreof 5.
– Average 1 month return for industry is 4.3%. The max 1- month return was given by Bajaj Finserv: a return of 19.12 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 5.0 cr compared to Rs 4.0 cr for period ended Jun 2020, a rise of 25.0%
Company reported operating profit of Rs 5.0 cr for period ended Jun 2021, operating profit margin at 100.0 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 8.82 compared to Rs 55.23 for previous quarter ended Mar 2021 and Rs -0.94 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 18.0 cr for period ended TTM vis-vis sales of Rs 16.0 cr for the period ended Mar 2021, a healthy growth of 11.1%. The 3 year sales cagr stood at -1.8%.
Operating margins expanded to 68.0% for period ended TTM vis-vis 65.0% for period ended Mar 2021, expansion of 300.0 bps.
Net Profit reported at Rs 304.0 cr for period ended TTM vis-vis sales of Rs 267.0 cr for the period ended Mar 2021, rising 12.2%.
Company recorded a healthy Net Profit CAGR of 34.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -6.0 cr for period ended Mar 2021 vis-vis Rs -30.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 14% on a 1 Year basis vis-vis a return of 0% over the last 3 Years. – The compounded sales growth on a TTM bassis is -26% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 82% vis-vis a compounded profit growth of 16% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 1.12% vis-vis 1.11% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.06% vis-vis 25.07% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.40 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -55.89% over past five years.
– has a low return on equity of 8.13% for last 3 years.
-Earnings include an other income of Rs.347.17 Cr.
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 below its 50 DMA 368.79 and is trading at 351.0. Shows a near term lack of buying interest.
