Mehabe score: 4 G Factor: 3 Piotski Score: 8 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 8.
Description
Ganges Securitiesis is engaged in the business to invest etc, in securities mainly of group companies and in immovable properties.Site:GANGESSECUMain Symbol:GANGESSEC
Stock trades at 94.0, above its 50dma 81.92. It also trades above its 200dma 64.94. The stock remains bullish on techicals
The 52 week high is at 102.70 and the 52week low is at 29.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.28 times its book value
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 3.31% for last 3 years.
Competition
– The industry trades at a mean P/E of 27.3x. SBI Cards trades at the industry’s max P/E of 109.32x. GANGESSECU trades at a P/E of 9.6x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. GANGESSECU has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is 7.8%. The max 1- month return was given by Bajaj Finserv: a return of 20.21 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1.95 cr compared to Rs 2.85 cr for period ended Mar 2020, a fall of 31.6%
Company reported negative operating profit of Rs -3.39 cr for period ended Mar 2021. For same period last year, operating profit was -2.62
The EPS for Mar 2021 was Rs -3.34 compared to Rs 1.85 for previous quarter ended Dec 2020 and Rs -1.74 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 34.81 cr for period ended Mar 2021 vis-vis sales of Rs 31.87 cr for the period ended Mar 2020, a growth of 8.4%. The 3 year sales cagr stood at 1.3%.
Operating margins expanded to 34.39% for period ended Mar 2021 vis-vis 29.02% for period ended Mar 2020, expansion of 537.0 bps.
Net Profit reported at Rs 9.79 cr for period ended Mar 2021 vis-vis sales of Rs 7.14 cr for the period ended Mar 2020, rising 27.1%.
Company recorded a Net Profit CAGR of 2.0% 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 4.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 217% on a 1 Year basis vis-vis a return of 20% over the last 3 Years. – The compounded sales growth on a TTM bassis is 9% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 37% vis-vis a compounded profit growth of 2% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 34.78% vis-vis 34.78% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.28 times its book value – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 3.31% for last 3 years.
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 81.92 and is trading at 94.0 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
