Mehabe score: 3 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
BLB, the flagship company of the group has been one of the leading liquidity providers to the equity and derivative markets in India.Site:BLBLIMITED
Market Cap:
Rs 49.7 cr
Price:
9.4
Trading pe:
44.0x
Book-value:
14.8/share
Div yield:
0.00 %
Earning yield:
6.82%
Face-value:
1.00/share
52week high:
10.30
52week low:
3.90
Technical Analysis
Stock trades at 9.4, above its 50dma 7.28. It also trades above its 200dma 6.08. The stock remains bullish on techicals
The 52 week high is at 10.30 and the 52week low is at 3.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.64 times its book value
– is expected to give good quarter
-Promoter holding has increased by 1.51% over last quarter.
Weakness
– has a low return on equity of -0.83% for last 3 years.
-Contingent liabilities of Rs.55.00 Cr.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 22.4x. SBI Cards trades at the industry’s max P/E of 92.94x. BLBLIMITED trades at a P/E of 44.0x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 8.0. BLBLIMITED has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 8.6%. The max 1- month return was given by BLB: a return of 39.26 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 31.51 cr compared to Rs 152.93 cr for period ended Mar 2020, a fall of 79.4%
Operating Profits reported at Rs 1.13 cr for period ended Mar 2021 vis-vis 1.31 for period ended Mar 2020 .
Operating Margins expanded 273.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.18 compared to Rs -0.09 for previous quarter ended Dec 2020 and Rs 0.09 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 537.0 cr for period ended Mar 2021 vis-vis sales of Rs 199.0 cr for the period ended Mar 2020, a healthy growth of 62.9%. The 3 year sales cagr stood at 1.2%.
Net Profit reported at Rs 1.0 cr for period ended Mar 2021 vis-vis sales of Rs -8.0 cr for the period ended Mar 2020, rising 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to -1.0% over the last 3 Years. – The stock has given a return of 42% on a 1 Year basis vis-vis a return of 8% over the last 3 Years. – The compounded sales growth on a TTM bassis is 170% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -12% vis-vis a compounded profit growth of 31% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 29.55% vis-vis 31.06% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.64 times its book value
– is expected to give good quarter
-Promoter holding has increased by 1.51% over last quarter. – has a low return on equity of -0.83% for last 3 years.
-Contingent liabilities of Rs.55.00 Cr.
-‘s cost of borrowing seems high
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 7.28 and is trading at 9.4, thus bullish price action wise.
