Mehabe score: 3 G Factor: 1 Piotski Score: 2 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 1 and Piotski score of 2.
Description
The Company is a non deposit taking NBFC, registered with the RBI, providing inter-corporate loans, personal loans, loans against shares & securities, loans against properties, trading in shares & securities, and arbitrage business in the stock and commodity markets. Being an NBFC the Company has positioned itself between the organized banking sector and local money lenders, offering the customers competitive, flexible and timely lending services. Site:SHARPINV Main Symbol:SHARPINV
Stock trades at 2.95, below its 50dma 65.2 and below its 200dma 52.95. The stock remains bearish on technicals
The 52 week high is at 84.40 and the 52week low is at 24.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 2.52 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -61.15% over past five years.
– has a low return on equity of -0.20% for last 3 years.
Competition
– The industry trades at a mean P/E of 25.2x. Bajaj Finance trades at the industry’s max P/E of 71.68x. SHARPINV trades at a P/E of x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 6.0. SHARPINV has a G-Factor of 1 and Piotski scoreof 2.
– Average 1 month return for industry is -11.6%. The max 1- month return was given by Cholaman.Inv.&Fn: a return of 11.49 %
Quarterly Results
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Company reported operating profit of Rs 0.05 cr for period ended Dec 2021 and operating profit margin at 62.5 % for same periodOperating profit was negative for the same period last year. Company has improved its margins this year.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.08 cr for period ended TTM vis-vis sales of Rs 0.01 cr for the period ended Mar 2021, a healthy growth of 87.5%. The 3 year sales cagr stood at -22.2%.
Operating margins expanded to -62.5% for period ended TTM vis-vis -700.0% for period ended Mar 2021, expansion of 63750.0 bps.
Net Profit reported at Rs -0.05 cr for period ended TTM vis-vis sales of Rs -0.07 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 743% on a 1 Year basis vis-vis a return of 125% over the last 3 Years. – The compounded sales growth on a TTM bassis is -75% vis-vis a compounded sales growth of -66% over the last 3 Years. – The compounded profit growth on a TTM basis is -50% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 53.89% vis-vis 53.89% for Sep 2021
Conclusion
– is almost debt free. – Stock is trading at 2.52 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -61.15% over past five years.
– has a low return on equity of -0.20% 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 65.2 and is trading at 2.95. 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
