Mehabe score: 4 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
Nagreeka Capital & Infrastructure is engaged in the business of trading in shares and securities, derivatives etc. The Company obtained permission from the Reserve Bank of India for carrying on the business of Non-Banking Financial Institutions without accepting deposit in September 2008 vide Regn No. N.05.06774. The Company is presently classified as Investment Company.Site:NAGREEKCAPMain Symbol:NAGREEKCAP
Stock trades at 8.45, above its 50dma 7.71. It also trades above its 200dma 7.08. The stock remains bullish on techicals
The 52 week high is at 8.90 and the 52week low is at 4.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.48 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -26.60% over past five years.
– has a low return on equity of -86.81% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 21.9x. SBI Cards trades at the industry’s max P/E of 98.92x. NAGREEKCAP trades at a P/E of 10.4x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. NAGREEKCAP has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 1.7%. The max 1- month return was given by Cholaman.Inv.&Fn: a return of 11.52 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 2.79 cr compared to Rs 2.15 cr for period ended Sep 2020, a rise of 29.8%
Operating Profits reported at Rs 2.31 cr for period ended Sep 2021 vis-vis 1.39 for period ended Sep 2020 .
Operating Margins expanded 1814.5 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.54 compared to Rs 0.12 for previous quarter ended Jun 2021 and Rs 0.04 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 7.95 cr for period ended TTM vis-vis sales of Rs 10.9 cr for the period ended Mar 2021, a fall of 37.1%. The 3 year sales cagr stood at -63.2%.
Operating margins expanded to 83.02% for period ended TTM vis-vis 54.95% for period ended Mar 2021, expansion of 2807.0 bps.
Net Profit reported at Rs 0.84 cr for period ended TTM vis-vis sales of Rs 0.18 cr for the period ended Mar 2021, rising 0%.
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 1.0% compared to -87.0% over the last 3 Years. – The stock has given a return of 32% on a 1 Year basis vis-vis a return of -18% over the last 3 Years. – The compounded sales growth on a TTM bassis is -74% vis-vis a compounded sales growth of -54% over the last 3 Years. – The compounded profit growth on a TTM basis is 102% vis-vis a compounded profit growth of 26% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 46.44% vis-vis 46.44% for Jun 2021
Conclusion
– Stock is trading at 0.48 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of -26.60% over past five years.
– has a low return on equity of -86.81% 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 7.71 and is trading at 8.45, thus bullish price action wise.
