Mehabe score: 5 G Factor: 5 Piotski Score: 7 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 7.
Description
GIC Housing Finance is engaged in the Housing Finance business and revenues are mainly derived from this activity.(Source : 201903 Annual Report Page No: 49)Site:GICHSGFINMain Symbol:GICHSGFIN
Stock trades at 170.0, above its 50dma 166.13. It also trades above its 200dma 137.38. The stock remains bullish on techicals
The 52 week high is at 202.55 and the 52week low is at 88.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.67 times its book value
– has been maintaining a healthy dividend payout of 20.43%
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 7.02% over past five years.
– has a low return on equity of 8.60% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 23.5x. AAVAS Financiers trades at the industry’s max P/E of 67.73x. GICHSGFIN trades at a P/E of 8.66x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 8.0. GICHSGFIN has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is -8.9%. The max 1- month return was given by H D F C: a return of 4.46 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 299.0 cr compared to Rs 313.0 cr for period ended Mar 2020, a fall of 4.5%
Operating Profits reported at Rs 2.0 cr for period ended Mar 2021 vis-vis 41.0 for period ended Mar 2020 .
Operating Margins contracted -1243.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 14.8 compared to Rs 11.32 for previous quarter ended Dec 2020 and Rs 4.91 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1230.0 cr for period ended Mar 2021 vis-vis sales of Rs 1252.0 cr for the period ended Mar 2020, a fall of 1.8%. The 3 year sales cagr stood at 3.4%.
Operating margins expanded to 130.0% for period ended Mar 2021 vis-vis 116.0% for period ended Mar 2020, expansion of 1400.0 bps.
Net Profit reported at Rs 106.0 cr for period ended Mar 2021 vis-vis sales of Rs 46.0 cr for the period ended Mar 2020, rising 56.6%.
Company reported a poor Net Profit CAGR of -19.9% 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 548.0 cr for period ended Mar 2021 vis-vis Rs 0.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 69% on a 1 Year basis vis-vis a return of -21% over the last 3 Years. – The compounded sales growth on a TTM bassis is -2% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is 131% vis-vis a compounded profit growth of -20% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.15% vis-vis 0.14% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 50.54% vis-vis 50.56% for Mar 2021
Conclusion
– Stock is trading at 0.67 times its book value
– has been maintaining a healthy dividend payout of 20.43% – has low interest coverage ratio.
-The company has delivered a poor sales growth of 7.02% over past five years.
– has a low return on equity of 8.60% for last 3 years.
– might be capitalizing the interest cost
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 166.13 and is trading at 170.0, thus bullish price action wise.
