Mehabe score: 1 G Factor: 5 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 5 and Piotski score of 6.
Description
Inventure Growth & Securities is engaged in the Business of presently having membership of various exchanges and is in the business of providing stock broking and related services.Site:INVENTUREMain Symbol:INVENTURE
Stock trades at 3.25, below its 50dma 3.53. However it is trading above its 200dma 2.78. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 3.53.
The 52 week high is at 4.70 and the 52week low is at 1.42
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 39.43% CAGR over last 5 years
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 27.59%
– has a low return on equity of 1.66% for last 3 years.
Competition
– The industry trades at a mean P/E of 25.8x. SBI Cards trades at the industry’s max P/E of 108.34x. INVENTURE trades at a P/E of 21.9x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 6.0. INVENTURE has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 2.0%. The max 1- month return was given by Bajaj Finserv: a return of 13.1 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 11.23 cr compared to Rs 7.61 cr for period ended Jun 2020, a rise of 47.6%
Company reported operating profit of Rs 5.44 cr for period ended Jun 2021, operating profit margin at 48.4 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 0.05 compared to Rs 0.1 for previous quarter ended Mar 2021 and Rs -0.02 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 42.0 cr for period ended TTM vis-vis sales of Rs 39.0 cr for the period ended Mar 2021, a growth of 7.1%. The 3 year sales cagr stood at -23.8%.
Operating margins expanded to 58.0% for period ended TTM vis-vis 45.0% for period ended Mar 2021, expansion of 1300.0 bps.
Net Profit reported at Rs 18.0 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
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 2.0% over the last 3 Years. – The stock has given a return of 84% on a 1 Year basis vis-vis a return of 29% over the last 3 Years. – The compounded sales growth on a TTM bassis is 27% vis-vis a compounded sales growth of -50% over the last 3 Years. – The compounded profit growth on a TTM basis is 31250% vis-vis a compounded profit growth of 40% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.03% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 72.38% vis-vis 72.41% for Mar 2021
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 39.43% CAGR over last 5 years – Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 27.59%
– has a low return on equity of 1.66% 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 below its 50 DMA 3.53 and is trading at 3.25. Shows a near term lack of buying interest.
