Mehabe score: 5 G Factor: 3 Piotski Score: 7 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 7.
Description
PB Fintech Ltd, popularly known as Policy Bazar is India’s largest online platform for insurance and lending products through its flagship brands – Policybazaar and Paisabazaar platform through which they provide convenient access to insurance, credit and other financial products[1] Site:POLICYBZR Main Symbol:POLICYBZR
Stock trades at 866.0, below its 50dma 973.94 and below its 200dma 1118.15. The stock remains bearish on technicals
The 52 week high is at 1470.00 and the 52week low is at 725.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 19.42 times its book value
– has low interest coverage ratio.
– has a low return on equity of -29.56% for last 3 years.
Competition
– The industry trades at a mean P/E of 26.3x. Indian Energy Ex trades at the industry’s max P/E of 70.27x. POLICYBZR trades at a P/E of x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 9.0. POLICYBZR has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is -0.5%. The max 1- month return was given by BSE: a return of 9.6 %
Quarterly Results
.
Company reported negative operating profit of Rs -317.0 cr for period ended Dec 2021..
The EPS for quarter ended Dec 2021 is Rs -6.63 compared to Rs -4.97 for previous quarter ended Sep 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 887.0 cr for period ended Mar 2021 vis-vis sales of Rs 771.0 cr for the period ended Mar 2020, a healthy growth of 13.1%. The 3 year sales cagr stood at 38.5%.
Operating margins expanded to -18.0% for period ended Mar 2021 vis-vis -41.0% for period ended Mar 2020, expansion of 2300.0 bps.
Net Profit reported at Rs -150.0 cr for period ended Mar 2021 vis-vis sales of Rs -304.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 29.0 cr for period ended Mar 2021 vis-vis Rs -364.0 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 -11.0% compared to -30.0% over the last 3 Years. – The stock has given a return of % on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 15% vis-vis a compounded sales growth of 38% over the last 3 Years. – The compounded profit growth on a TTM basis is 53% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
Conclusion
– is almost debt free. – Stock is trading at 19.42 times its book value
– has low interest coverage ratio.
– has a low return on equity of -29.56% for last 3 years.
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 973.94 and is trading at 866.0. 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
