Share of Equitas Holdings Limited has delivered 119 per cent return to its shareholders in one year. The share stood at Rs 56.8 on July 8, 2020. It has zoomed to Rs 124.70 today, translating into gains of 119 per cent during the period. In comparison, Sensex rose 45 per cent in one year.
Rs 5 lakh invested in the share a year ago would have turned into Rs 10.97 lakh today.
The stock has gained 73 per cent since the beginning of this year. It rose 12 per cent to hit a fresh 52-week high of Rs 124.7 today on the back of heavy volumes.
With a market capitalisation of over Rs 3,900 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
According to MarketsMojo, the stock is trading at a discount compared to its average historical valuations and its valuation seems to be very attractive. Over the past year, its profits have risen by 131.3% and the price/earnings to growth ratio (PEG) ratio of the company is 0.1. It also noted that the company has a strong long-term fundamental strength with a 24.72% CAGR growth in operating profits.
The technical trend has improved from Mildly Bullish on July 7, 2021. The stock is technically in a Bullish range now and has generated 8.13% returns since then. Multiple factors for the stock are Bullish like MACD, Bollinger Band, and KST.
However, the company is borrowing more to fund its operators as the debt-equity ratio of the company has increased to 6.88. Also, the company's income from non-business activities is high which is not a sustainable business model.
Equitas Holdings posted a net profit of Rs 85.77 crore for the quarter ended March 2021 as against a net profit of Rs 15.56 crore in March 2020. Net Sales stood at Rs 947.66 crore in March 2021 compared to Rs 790.21 crore in March 2020.
The share surged after Equitas Small Finance Bank (SFB) released its business update for the June quarter. Equitas Holdings held 81.98 per cent stake in Equitas SFB as of March 31, 2021.
"On the asset quality front, collection efficiency declined sharply in May'21 across segments but showed recovery in vehicle / small business loan segments in Jun'21. However, collection efficiency in the microfinance institution (MFI) portfolio declined sharply," Motilal Oswal said.
However, the share of Equitas SFB declined 5 per cent to hit an intraday low of Rs 64.35 in the morning session today on BSE. At 12:16 hours, the share was trading at Rs 65.20, down 3.62 per cent on BSE.
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