Mehabe score: 7 G Factor: 6 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 6 and Piotski score of 7.
Description
HB Stockholdings is engaged in Non-Banking Financial Company- Non-Systemically Important Non-Deposit taking Company registered with Reserve Bank of India.Site:HBSLMain Symbol:HBSTOCK
Stock trades at 26.7, above its 50dma 23.42. It also trades above its 200dma 16.19. The stock remains bullish on techicals
The 52 week high is at 32.85 and the 52week low is at 4.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.36 times its book value
– has delivered good profit growth of 27.77% CAGR over last 5 years
Weakness
– has a low return on equity of -1.19% for last 3 years.
Competition
– The industry trades at a mean P/E of 27.3x. SBI Cards trades at the industry’s max P/E of 109.35x. HBSL trades at a P/E of 1.63x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 7.0. HBSL has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 7.9%. The max 1- month return was given by Bajaj Finserv: a return of 20.21 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 12.0 cr compared to Rs 4.0 cr for period ended Jun 2020, a rise of 200.0%
Operating Profits reported at Rs 12.0 cr for period ended Jun 2021 vis-vis 4.0 for period ended Jun 2020 .
The EPS for Jun 2021 was Rs 16.76 compared to Rs 0.13 for previous quarter ended Mar 2021 and Rs 5.3 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 21.0 cr for period ended TTM vis-vis sales of Rs 13.0 cr for the period ended Mar 2021, a healthy growth of 38.1%. The 3 year sales cagr stood at 91.3%.
Operating margins expanded to 93.0% for period ended TTM vis-vis 90.0% for period ended Mar 2021, expansion of 300.0 bps.
Net Profit reported at Rs 20.0 cr for period ended TTM vis-vis sales of Rs 12.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 5.0 cr for period ended Mar 2021 vis-vis Rs -1.0 cr for period ended Mar 2020
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 28.0% compared to -1.0% over the last 3 Years. – The stock has given a return of 364% on a 1 Year basis vis-vis a return of 23% over the last 3 Years. – The compounded sales growth on a TTM bassis is 570% vis-vis a compounded sales growth of 87% over the last 3 Years. – The compounded profit growth on a TTM basis is 260% vis-vis a compounded profit growth of 186% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 46.78% vis-vis 46.78% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.36 times its book value
– has delivered good profit growth of 27.77% CAGR over last 5 years – has a low return on equity of -1.19% for last 3 years.
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 23.42 and is trading at 26.7, thus bullish price action wise.
