Mehabe score: 2 G Factor: 3 Piotski Score: 4 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 4.
Description
SIL Investments is engaged in the business of Commercial Finance and Investments.Site:SILINVMain Symbol:SILINV
Stock trades at 323.0, above its 50dma 294.48. It also trades above its 200dma 227.76. The stock remains bullish on techicals
The 52 week high is at 358.00 and the 52week low is at 132.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.27 times its book value
Weakness
– The company has delivered a poor sales growth of 2.09% over past five years.
– has a low return on equity of 2.93% for last 3 years.
-Dividend payout has been low at 9.52% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 24.9x. SBI Cards trades at the industry’s max P/E of 107.91x. SILINV trades at a P/E of 16.9x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 6.0. SILINV has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 3.4%. The max 1- month return was given by Bajaj Finserv: a return of 10.8 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2.96 cr compared to Rs 18.41 cr for period ended Mar 2020, a fall of 83.9%
Operating Profits reported at Rs 0.02 cr for period ended Mar 2021 vis-vis 15.99 for period ended Mar 2020 .
Operating Margins contracted -8617.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -1.8 compared to Rs 13.36 for previous quarter ended Dec 2020 and Rs 14.32 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 28.0 cr for period ended Mar 2021 vis-vis sales of Rs 39.0 cr for the period ended Mar 2020, a fall of 39.3%. The 3 year sales cagr stood at -46.0%.
Operating margins shrank to 78.0% for period ended Mar 2021 vis-vis 87.0% for period ended Mar 2020, contraction of 900.0 bps.
Net Profit reported at Rs 20.0 cr for period ended Mar 2021 vis-vis sales of Rs 35.0 cr for the period ended Mar 2020, falling 75.0%.
Company reported a poor Net Profit CAGR of -47.1% over the last 3 years
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 2.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 129% on a 1 Year basis vis-vis a return of 14% over the last 3 Years. – The compounded sales growth on a TTM bassis is -27% vis-vis a compounded sales growth of -46% over the last 3 Years. – The compounded profit growth on a TTM basis is -42% vis-vis a compounded profit growth of -47% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 37.19% vis-vis 37.19% for Mar 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.27 times its book value – The company has delivered a poor sales growth of 2.09% over past five years.
– has a low return on equity of 2.93% for last 3 years.
-Dividend payout has been low at 9.52% of profits over 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 294.48 and is trading at 323.0 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
