Sunday, May 22, 2016

Sumedha Fiscal Services - Value Buy?

The company was established in the year 1989. It provides a wide array of services including Investment Banking, Wealth Management and Broking Services.

The average ROCE of the company over the last 10 years is 28.29% and is lower at 20.31% in the last 3 years. The company has current assets to the tune of INR 20.13 Crore. The average operating cash flow of the company over the last five years is around INR 1 Crore. The company has remained profitable and paid dividends over the last 11 years.

The promoters hold 49.57% of the company on March 2016. It has increased from 46.86% in December 2015.

At the current market price of INR 14.7, the market cap of the company is INR 11.73 Crore. The stock price is barely trading higher than its price in year 2005 when it was trading between INR 8 and 9. The book value of the company has increased from INR 12 to INR 39 during these ten years, the EPS has gone up from INR 0.57 to INR 2. The company's valuation is below its net current assets. The company doesn't seem to be very expensive at this price.
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