Muthoot Capital Services Ltd closes at ₹405.30 with
a Gain of + 4.70 %
on 03-July- 2020 with formation of
a Green Candle
on Daily Price Chart.
About the Company : Muthoot Capital Services is a
Systemically Important Deposit Accepting Non-Banking Financial Company (NBFC)
primarily engaged in the business of financing for purchase of automobiles,
mainly two wheelers against hypothecation of the vehicles and granting of
personal/business loans etc.The Company has
posted Net Sales / Revenue of ₹194.90 Cr & Net Profit
of ₹26.70 Cr in FY2020 and expected to post Net Sales /
Revenue of ₹185.20 Cr & Net Profit of ₹22.60 Cr in FY2021
and Net Sales / Revenue of ₹218.50 Cr &
Net Profit of ₹33.30 Cr in FY2022 .
Valuations : The
Company is now Trading at X 0.60 of its
Value. We have valued the company with its
expected Financial Year 2020 earnings
, which is now almost ~40% Discount
to its value .
The Company has total assets of ₹2587.20 Cr and Net Debt of ₹1905.40 Cr in its books as on
31.03.2020. Return on Equity (RoE) is 12.3%( declined from 18.90% of FY2019);
RoA is 2.34%; EPS is 36.8.
Why it is in Focus: The sale of used car has increased
to 5Mn units in 2020 from 3.5 mn in 2014.
“ A study by second-hand car dealer Cars24 showed 22.5 per cent of the consumers, who were planning on
buying a new car last year, would prefer used cars now due to limited budget.”
( Media Report )
The Fare Value of Equity Per
Share is ₹802 for FY2021 and ₹ 1023 for FY2022 ( based on 10% expected growth )
Disclaimer : We are / may going to take exposure shortly.
The author tracks economic,
behavioural and corporate tends, hoping to gauge good avenues of return based
on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1
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