Mehabe score: 2 G Factor: 4 Piotski Score: 0 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 4 and Piotski score of 0.
Description
Punjab & Sind Bank is engaged in the Business of Deposits,Loans & Advances and Remittances & Collections.
Main Points
Ratios (Q3FY21)
Capital Adequacy Ratio – 16.39%#
Net Interest Margin – 2.31%#
Gross NPA – 13.14%
Net NPA – 2.84%#
CASA Ratio – 32.4%Site:PSB
Market Cap:
Rs 8,551 cr
Price:
21.1
Trading pe:
x
Book-value:
13.8/share
Div yield:
0.00 %
Earning yield:
1.42%
Face-value:
10.0/share
52week high:
23.79
52week low:
10.30
Technical Analysis
Stock trades at 21.1, above its 50dma 19.79. It also trades above its 200dma 16.96. The stock remains bullish on techicals
The 52 week high is at 23.79 and the 52week low is at 10.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– Promoter holding has increased by 14.01% over last quarter.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -4.42% over past five years.
– has a low return on equity of -24.89% for last 3 years.
-Contingent liabilities of Rs.6289.02 Cr.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.902.81 Cr.
Competition
– The industry trades at a mean P/E of 18.7x. I O B trades at the industry’s max P/E of 58.65x. PSB trades at a P/E of x
– Industry’s mean G-Factor is 4.9 while the mean Piotski score is 8.0. PSB has a G-Factor of 4 and Piotski scoreof 0.
– Average 1 month return for industry is 9.2%. The max 1- month return was given by I O B: a return of 53.12 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1611.0 cr compared to Rs 1904.0 cr for period ended Mar 2020, a fall of 15.4%
Operating Profits reported at Rs 656.0 cr for period ended Mar 2021 vis-vis 1277.0 for period ended Mar 2020 .
Operating Margins contracted -2634.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.4 compared to Rs -33.89 for previous quarter ended Dec 2020 and Rs -3.37 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6974.0 cr for period ended Mar 2021 vis-vis sales of Rs 7930.0 cr for the period ended Mar 2020, a fall of 13.7%. The 3 year sales cagr stood at -4.3%.
Operating margins shrank to -4307.0% for period ended Mar 2021 vis-vis -2366.0% for period ended Mar 2020, contraction of 194100.0 bps.
Net Profit reported at Rs -2733.0 cr for period ended Mar 2021 vis-vis sales of Rs -991.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -49.0% compared to -25.0% over the last 3 Years. – The stock has given a return of 29% on a 1 Year basis vis-vis a return of -11% over the last 3 Years. – The compounded sales growth on a TTM bassis is -12% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is -176% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 1.88% vis-vis 10.86% for Dec 2020
Conclusion
– Promoter holding has increased by 14.01% over last quarter. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -4.42% over past five years.
– has a low return on equity of -24.89% for last 3 years.
-Contingent liabilities of Rs.6289.02 Cr.
– might be capitalizing the interest cost
-Earnings include an other income of Rs.902.81 Cr.
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 19.79 and is trading at 21.1 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
