Mehabe score: 6 G Factor: 3 Piotski Score: 3 The stock has a rating OBSERVE & 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 3 and Piotski score of 3.
Description
Pro Fin Capital Services is enjoys the distinction of being one of the leading provider of solutions and services in the realm of financial sector. Site:PROFINC Main Symbol:PROFINC
Stock trades at 37.6, above its 50dma 36.16. It also trades above its 200dma 34.25. The stock remains bullish on techicals
The 52 week high is at 44.00 and the 52week low is at 23.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.12 times its book value
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -0.92%
-Promoter holding is low: 29.12%
– has a low return on equity of -3.55% for last 3 years.
– might be capitalizing the interest cost
-Promoters have pledged 92.47% of their holding.
Competition
– The industry trades at a mean P/E of 26.2x. Bajaj Finance trades at the industry’s max P/E of 71.5x. PROFINC trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 6.0. PROFINC has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is -3.4%. The max 1- month return was given by Cholaman.Inv.&Fn: a return of 14.38 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 7.3 cr compared to Rs 3.78 cr for period ended Dec 2020, a rise of 93.1% .
vis-vis 3.33 for period ended Dec 2020 .
Operating Margins contracted -1330.1 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 5.46 cr for period ended Dec 2021 and operating profit margin at 74.8 % for same period.
The EPS for quarter ended Dec 2021 is Rs 0.37 compared to Rs 0.07 for previous quarter ended Sep 2021 and Rs 0.35 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 27.44 cr for period ended TTM vis-vis sales of Rs 20.24 cr for the period ended Mar 2021, a healthy growth of 26.2%. The 3 year sales cagr stood at -23.7%.
Operating margins expanded to 44.68% for period ended TTM vis-vis 41.16% for period ended Mar 2021, expansion of 352.0 bps.
Net Profit reported at Rs -7.76 cr for period ended TTM vis-vis sales of Rs -7.07 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 11.6 cr for period ended Mar 2021 vis-vis Rs -65.81 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -26.0% compared to -4.0% over the last 3 Years. – The stock has given a return of 29% on a 1 Year basis vis-vis a return of -47% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4751% vis-vis a compounded sales growth of -14% over the last 3 Years. – The compounded profit growth on a TTM basis is -477% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.0% vis-vis 0.0% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 70.88% vis-vis 69.96% for Sep 2021
Conclusion
– Stock is trading at 1.12 times its book value
– is expected to give good quarter – has low interest coverage ratio.
-Promoter holding has decreased over last quarter: -0.92%
-Promoter holding is low: 29.12%
– has a low return on equity of -3.55% for last 3 years.
– might be capitalizing the interest cost
-Promoters have pledged 92.47% of their holding.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 36.16 and is trading at 37.6 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
