Mehabe score: 3 G Factor: 4 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 4 and Piotski score of 6.
Description
The Investment Trust of India is engaged in advisory services and trading activities besides holding investment in subsidiaries. The Group business consists of equity and commodity broking, financial services, lending business, investment banking and third party distribution activities.Site:THEINVESTMain Symbol:THEINVEST
Stock trades at 117.0, above its 50dma 107.54. It also trades above its 200dma 109.29. The stock remains bullish on techicals
The 52 week high is at 178.00 and the 52week low is at 83.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 1.00 times its book value
Weakness
– has low interest coverage ratio.
– has a low return on equity of 2.47% for last 3 years.
-Earnings include an other income of Rs.22.36 Cr.
Competition
– The industry trades at a mean P/E of 26.7x. SBI Cards trades at the industry’s max P/E of 108.74x. THEINVEST trades at a P/E of 40.0x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 6.0. THEINVEST has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 5.4%. The max 1- month return was given by Bajaj Finserv: a return of 18.99 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 79.27 cr compared to Rs 68.2 cr for period ended Jun 2020, a rise of 16.2%
Operating Profits reported at Rs 10.21 cr for period ended Jun 2021 vis-vis 17.09 for period ended Jun 2020 .
Operating Margins contracted -1217.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.12 compared to Rs 0.6 for previous quarter ended Mar 2021 and Rs 0.31 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 333.0 cr for period ended TTM vis-vis sales of Rs 322.0 cr for the period ended Mar 2021, a growth of 3.3%. The 3 year sales cagr stood at -19.6%.
Operating margins shrank to 14.0% for period ended TTM vis-vis 16.0% for period ended Mar 2021, contraction of 200.0 bps.
Net Profit reported at Rs 14.0 cr for period ended TTM vis-vis sales of Rs 15.0 cr for the period ended Mar 2021, falling 7.1%.
Company reported a poor Net Profit CAGR of -26.3% over the last 3 years
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 3.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 18% on a 1 Year basis vis-vis a return of -20% over the last 3 Years. – The compounded sales growth on a TTM bassis is -30% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is 304% vis-vis a compounded profit growth of -42% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 4.18% vis-vis 4.18% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 22.69% vis-vis 22.69% for Mar 2021
Conclusion
– has reduced debt.
-Stock is trading at 1.00 times its book value – has low interest coverage ratio.
– has a low return on equity of 2.47% for last 3 years.
-Earnings include an other income of Rs.22.36 Cr.
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 107.54 and is trading at 117.0, thus bullish price action wise.
