Mehabe score: 2 G Factor: 3 Piotski Score: 4 The stock has a rating SELL. 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 3 and Piotski score of 4.
Description
Kalyani Investment Company is primarily engaged in the business of making investments in group companies.(Source : 201903 Annual Report Page No: 42) Site:KICL Main Symbol:KICL
Stock trades at 1834.0, below its 50dma 1863.42 and below its 200dma 1878.46. The stock remains bearish on technicals
The 52 week high is at 2436.05 and the 52week low is at 1385.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.14 times its book value
– is expected to give good quarter
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -26.91% over past five years.
– has a low return on equity of 1.35% for last 3 years.
-Earnings include an other income of Rs.51.52 Cr.
Competition
– The industry trades at a mean P/E of 26.5x. Bajaj Finance trades at the industry’s max P/E of 71.44x. KICL trades at a P/E of 14.6x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 6.0. KICL has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is -3.4%. The max 1- month return was given by Cholaman.Inv.&Fn: a return of 15.42 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 15.0 cr compared to Rs 2.0 cr for period ended Sep 2020, a rise of 650.0% .
vis-vis 1.0 for period ended Sep 2020 .
Operating Margins expanded 4333.3 bps for period ended Sep 2021 vis-vis Sep 2020.
Company reported operating profit of Rs 14.0 cr for period ended Sep 2021 and operating profit margin at 93.3 % for same period.
The EPS for quarter ended Sep 2021 is Rs 46.07 compared to Rs 28.11 for previous quarter ended Jun 2021 and Rs 17.0 for Sep 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 21.0 cr for period ended TTM vis-vis sales of Rs 8.0 cr for the period ended Mar 2021, a healthy growth of 61.9%. The 3 year sales cagr stood at -13.1%.
Operating margins expanded to 85.0% for period ended TTM vis-vis 60.0% for period ended Mar 2021, expansion of 2500.0 bps.
Net Profit reported at Rs 55.0 cr for period ended TTM vis-vis sales of Rs 35.0 cr for the period ended Mar 2021, rising 36.4%.
Company reported a poor Net Profit CAGR of -3.4% over the last 3 years
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 10% on a 1 Year basis vis-vis a return of 7% over the last 3 Years. – The compounded sales growth on a TTM bassis is -30% vis-vis a compounded sales growth of -34% over the last 3 Years. – The compounded profit growth on a TTM basis is 57% vis-vis a compounded profit growth of -12% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 2.96% vis-vis 3.08% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 22.05% vis-vis 21.92% for Sep 2021
Conclusion
– is almost debt free.
-Stock is trading at 0.14 times its book value
– is expected to give good quarter – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -26.91% over past five years.
– has a low return on equity of 1.35% for last 3 years.
-Earnings include an other income of Rs.51.52 Cr.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 1863.42 and is trading at 1834.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
