Mehabe score: 4 G Factor: 6 Piotski Score: 6 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 6.
Description
New India Assurance Company is engaged in Non-Life Insurance.Site:NIACL
Market Cap:
Rs 29,137 cr
Price:
177.0
Trading pe:
17.8x
Book-value:
131/share
Div yield:
0.00 %
Earning yield:
11.53%
Face-value:
5.00/share
52week high:
197.00
52week low:
99.55
Technical Analysis
Stock trades at 177.0, above its 50dma 157.57. It also trades above its 200dma 140.64. The stock remains bullish on techicals
The 52 week high is at 197.00 and the 52week low is at 99.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 2.56% for last 3 years.
Competition
– The industry trades at a mean P/E of 60.7x. ICICI Pru Life trades at the industry’s max P/E of 114.99x. NIACL trades at a P/E of 17.8x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 6.0. NIACL has a G-Factor of 6 and Piotski scoreof 6.
– Average 1 month return for industry is 3.1%. The max 1- month return was given by New India Assura: a return of 16.97 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 9196.0 cr compared to Rs 7562.0 cr for period ended Mar 2020, a rise of 21.6%
Operating Profits reported at Rs 238.0 cr for period ended Mar 2021 vis-vis 81.0 for period ended Mar 2020 .
Operating Margins expanded 151.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.41 compared to Rs 3.19 for previous quarter ended Dec 2020 and Rs 0.72 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 32691.0 cr for period ended Mar 2021 vis-vis sales of Rs 30672.0 cr for the period ended Mar 2020, a growth of 6.2%. The 3 year sales cagr stood at 18.2%.
Net Profit reported at Rs 1640.0 cr for period ended Mar 2021 vis-vis sales of Rs 1442.0 cr for the period ended Mar 2020, rising 12.1%.
Company reported a poor Net Profit CAGR of -9.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -967.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 40% 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 7% vis-vis a compounded sales growth of 18% over the last 3 Years. – The compounded profit growth on a TTM basis is 270% vis-vis a compounded profit growth of 70% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.03% vis-vis 0.04% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 1.34% vis-vis 1.23% for Dec 2020
Conclusion
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 2.56% for last 3 years.
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 157.57 and is trading at 177.0, thus bullish price action wise.
