Mehabe score: 5 G Factor: 4 Piotski Score: 8 The stock has a rating . 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 8.
Description
Emkay Global Financial Services Ltd is engaged in the business of providing Stock Broking Services, Investment Banking, Depository Participant Services and Wealth Management Services.#
Main Points
Services Offered
The services that the company offers include equity broking, asset management, wealth management, currency and commodity advisory and broking, and investment banking, and financial education services.#Site:EMKAYMain Symbol:EMKAY
Stock trades at 109.0, above its 50dma 82.22. It also trades above its 200dma 71.37. The stock remains bullish on techicals
The 52 week high is at 107.50 and the 52week low is at 41.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of 9.08% over past five years.
– has a low return on equity of 1.26% for last 3 years.
-Contingent liabilities of Rs.170.69 Cr.
– has high debtors of 150.29 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 16.4x. Adit.Birla Money trades at the industry’s max P/E of 30.77x. EMKAY trades at a P/E of 24.1x
– Industry’s mean G-Factor is 4.9 while the mean Piotski score is 8.0. EMKAY has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 39.0%. The max 1- month return was given by Titan Securities: a return of 86.12 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 50.59 cr compared to Rs 34.33 cr for period ended Mar 2020, a rise of 47.4%
Company reported operating profit of Rs 11.89 cr for period ended Mar 2021, operating profit margin at 23.5 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 2.49 compared to Rs 0.51 for previous quarter ended Dec 2020 and Rs -3.09 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 162.0 cr for period ended Mar 2021 vis-vis sales of Rs 135.0 cr for the period ended Mar 2020, a healthy growth of 16.7%. The 3 year sales cagr stood at 1.3%.
Operating margins expanded to 17.0% for period ended Mar 2021 vis-vis -2.0% for period ended Mar 2020, expansion of 1900.0 bps.
Net Profit reported at Rs 11.0 cr for period ended Mar 2021 vis-vis sales of Rs -13.0 cr for the period ended Mar 2020, rising 218.2%.
Company reported a poor Net Profit CAGR of -27.6% 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 7.0% compared to 1.0% over the last 3 Years. – The stock has given a return of 127% on a 1 Year basis vis-vis a return of -4% over the last 3 Years. – The compounded sales growth on a TTM bassis is 21% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 188% vis-vis a compounded profit growth of -27% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.11% vis-vis 0.11% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.34% vis-vis 25.34% for Dec 2020
Conclusion
– is almost debt free. – The company has delivered a poor sales growth of 9.08% over past five years.
– has a low return on equity of 1.26% for last 3 years.
-Contingent liabilities of Rs.170.69 Cr.
– has high debtors of 150.29 days.
-‘s cost of borrowing seems high
