Mehabe score: 4 G Factor: 6 Piotski Score: 8 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 6 and Piotski score of 8.
Description
CARE Ratings is a leading credit rating agency of India. The Company provides various credit ratings that helps corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own riskreturn expectations.(Source : 202003-01 Annual Report Page No:134)
Main Points
Changes in top management
Dec 2019: MD & CEO Resignation
MD Rajesh Mokashi resigned after he was sent on leave due to an anonymous complaint filed with SEBI, TN Arun Kumar to act as interim CEO. # #Site:CARERATINGMain Symbol:CARERATING
Stock trades at 764.0, above its 50dma 674.38. It also trades above its 200dma 555.2. The stock remains bullish on techicals
The 52 week high is at 791.15 and the 52week low is at 296.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 63.33%
-Debtor days have improved from 48.91 to 31.38 days.
Weakness
– The company has delivered a poor sales growth of -2.32% over past five years.
Competition
– The industry trades at a mean P/E of 40.8x. CRISIL trades at the industry’s max P/E of 57.11x. CARERATING trades at a P/E of 25.2x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 8.0. CARERATING has a G-Factor of 6 and Piotski scoreof 8.
– Average 1 month return for industry is 8.1%. The max 1- month return was given by CRISIL: a return of 12.82 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 49.0 cr compared to Rs 37.0 cr for period ended Jun 2020, a rise of 32.4%
Operating Profits reported at Rs 9.0 cr for period ended Jun 2021 vis-vis 5.0 for period ended Jun 2020 .
Operating Margins expanded 485.4 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.75 compared to Rs 8.85 for previous quarter ended Mar 2021 and Rs 3.17 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 260.0 cr for period ended TTM vis-vis sales of Rs 248.0 cr for the period ended Mar 2021, a growth of 4.6%. The 3 year sales cagr stood at -6.6%.
Operating margins shrank to 38.0% for period ended TTM vis-vis 39.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 91.0 cr for period ended TTM vis-vis sales of Rs 90.0 cr for the period ended Mar 2021, rising 1.1%.
Company reported a poor Net Profit CAGR of -12.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 86.0 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 82% on a 1 Year basis vis-vis a return of -16% over the last 3 Years. – The compounded sales growth on a TTM bassis is 2% vis-vis a compounded sales growth of -9% over the last 3 Years. – The compounded profit growth on a TTM basis is 9% vis-vis a compounded profit growth of -18% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 23.52% vis-vis 22.69% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 58.01% vis-vis 56.91% for Mar 2021
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 63.33%
-Debtor days have improved from 48.91 to 31.38 days. – The company has delivered a poor sales growth of -2.32% over past five years.
