Mehabe score: 1 G Factor: 2 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 2 and Piotski score of 4.
Description
Shriram Asset Mgt. Company is engaged in the Business of Financial and related services. Site:SRAMSET Main Symbol:SRAMSET
Stock trades at 105.0, below its 50dma 1288.69 and below its 200dma 1320.53. The stock remains bearish on technicals
The 52 week high is at 1696.40 and the 52week low is at 1103.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 1.13 times its book value
Weakness
– has a low return on equity of -3.01% for last 3 years.
Competition
– The industry trades at a mean P/E of 25.2x. Shriram AMC trades at the industry’s max P/E of 330.95x. SRAMSET trades at a P/E of 331.0x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 6.0. SRAMSET has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is -2.0%. The max 1- month return was given by Cholaman.Inv.&Fn: a return of 21.72 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 1.07 cr compared to Rs 1.29 cr for period ended Dec 2020, a fall of 17.1%
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Company reported negative operating profit of Rs -0.12 cr for period ended Dec 2021. For same period last year, operating profit was -0.3.
The EPS for quarter ended Dec 2021 is Rs -0.25 compared to Rs 0.33 for previous quarter ended Sep 2021 and Rs -0.6 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4.95 cr for period ended TTM vis-vis sales of Rs 5.3 cr for the period ended Mar 2021, a fall of 7.1%. The 3 year sales cagr stood at -7.4%.
Operating margins expanded to -0.4% for period ended TTM vis-vis -3.58% for period ended Mar 2021, expansion of 318.0 bps.
Net Profit reported at Rs 0.4 cr for period ended TTM vis-vis sales of Rs -0.49 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 stock has given a return of 23% on a 1 Year basis vis-vis a return of -15% over the last 3 Years. – The compounded sales growth on a TTM bassis is 50% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 110% vis-vis a compounded profit growth of 9% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 31.28% vis-vis 31.32% for Sep 2021
Conclusion
– is almost debt free.
-Stock is trading at 1.13 times its book value – has a low return on equity of -3.01% 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 1288.69 and is trading at 105.0. 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
