MANGAL CREDIT AND FINCORP
I bought 20,000 shares of Mangal Credit and Fincorp Limited for ₹32. Please tell me if I should hold or sell? - Nitesh Kumar
Mangal Credit and Fincorp Limited is a non-banking finance company (NBFC) and is a holding company of many other companies. The company provides credit facilities, private educational funding, trading in markets and loans services. The company operates in various segments including finance, jewellery, entertainment, renting of movable assets and broking, among others. The company’s subsidiary units include Chakshu Realtors, Indtrans Container Lines,
Mangal Buildhome, Indtrans Container Lines (Singapore)
Pte and Mangal Bullion Private Limited, among several others.
On the financial front, Mangal Credit and Fincorp Limited (MCFL) posted a 0.86 per cent decrease in its revenue to
₹1.86 crore in Q4FY17 on a yearly basis. The company posted an operating loss of ₹0.40 crore in Q4FY17, down by 128.85 per cent on a year-on-year basis, against an operating profit of ₹1.40 crore in Q4FY16. The company further posted a net loss of ₹0.60 crore in the fourth quarter of FY17, as against a net profit of ₹0.13 crore in Q4FY16.
On an annual basis, the company’s revenue increased 24.51 per cent to ₹8.28 crore in FY17 from ₹6.65 crore in the previous fiscal. However, the company’s PBIDT stood at ₹5.32 crore in FY17, up by 46.56 per cent from ₹3.36 crore in the previous fiscal. The company’s profit after tax increased by 145.45 per cent to ₹2.70 in FY17 from ₹1.10 crore in FY16.
On the valuation front, the share price of MCFL is trading at a PE multiple of 16.42x, as against its peers such as DRA Consultants (18.39x), Transwind Infrastructure (74.48x), while the industry PE stood at 22.52x. MCFL has reported a massive decline in its financial performance with an equally dismal stock performance.
We would recommend our reader-investors to EXIT.