BSE:500206

Stock Analysis Report

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Executive Summary

Margo Finance Limited operates as a non-banking financial company in India.


Snowflake Analysis

Excellent balance sheet with questionable track record.

Share Price & News

How has Margo Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500206's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

500206

2.7%

IN Consumer Finance

2.4%

IN Market


1 Year Return

n/a

500206

1.3%

IN Consumer Finance

5.1%

IN Market

Return vs Industry: Insufficient data to determine how 500206 performed against the Indian Consumer Finance industry.

Return vs Market: Insufficient data to determine how 500206 performed against the Indian Market.


Shareholder returns

500206IndustryMarket
7 Day-1.9%2.7%2.4%
30 Day33.4%2.9%5.2%
90 Day11.7%40.3%21.1%
1 Yearn/a4.1%1.3%7.0%5.1%
3 Year-25.1%-25.1%42.6%34.0%4.8%-0.2%
5 Year-57.1%-57.1%180.7%156.3%30.4%20.7%

Price Volatility Vs. Market

How volatile is Margo Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Margo Finance undervalued compared to its fair value and its price relative to the market?

73.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 500206's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 500206's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 500206 is poor value based on its PE Ratio (73.1x) compared to the IN Consumer Finance industry average (11.1x).

PE vs Market: 500206 is poor value based on its PE Ratio (73.1x) compared to the Indian market (14.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500206's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500206 is good value based on its PB Ratio (0.1x) compared to the IN Consumer Finance industry average (0.6x).


Next Steps

Future Growth

How is Margo Finance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

31.9%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Margo Finance has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Margo Finance performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500206 has high quality earnings.

Growing Profit Margin: 500206's current net profit margins (11.7%) are lower than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: 500206 has become profitable over the past 5 years, growing earnings by 17.1% per year.

Accelerating Growth: 500206's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500206 had negative earnings growth (-42.6%) over the past year, making it difficult to compare to the Consumer Finance industry average (-3.4%).


Return on Equity

High ROE: 500206's Return on Equity (0.2%) is considered low.


Next Steps

Financial Health

How is Margo Finance's financial position?


Financial Position Analysis

Short Term Liabilities: 500206's short term assets (₹24.4M) exceed its short term liabilities (₹321.0K).

Long Term Liabilities: 500206's short term assets (₹24.4M) do not cover its long term liabilities (₹64.1M).


Debt to Equity History and Analysis

Debt Level: 500206 is debt free.

Reducing Debt: 500206 has no debt compared to 5 years ago when its debt to equity ratio was 1.3%.

Debt Coverage: 500206 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 500206 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Margo Finance current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 500206's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 500206's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500206's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500206's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500206's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average board tenure


CEO

Shri Maheshwari

no data

Tenure

₹707,380

Compensation

Mr. Shri Dass Maheshwari has been Whole-time Director of Finance at Margo Finance Ltd. since April 30, 2018 and its Chief Financial Officer since May 14, 2014. Mr. Maheshwari has more than 20 years of expe ...


CEO Compensation Analysis

Compensation vs Market: Shri's total compensation ($USD9.48K) is below average for companies of similar size in the Indian market ($USD49.39K).

Compensation vs Earnings: Shri's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Shri Maheshwari
CFO & Whole-time Director of Financeno data₹707.38kno data
Govind Agrawal
Non Executive Independent Directorno data₹15.00k0.044%
₹ 14.6k
Anil Jain
Non Executive Chairmanno datano data8.87%
₹ 2.9m
Sushilkumar Agrawal
Non Executive Non Independent Director4yrs₹20.00kno data
Venkiteswaran Parlikad
Independent & Non Executive Director5.75yrs₹16.00kno data
Smita Kulkarni
Additional Independent Director2.25yrs₹14.00kno data
Ambarish Sodha
Additional Non-Executive Independent Director0.92yrno datano data

2.3yrs

Average Tenure

66yo

Average Age

Experienced Board: 500206's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Margo Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Margo Finance Limited
  • Ticker: 500206
  • Exchange: BSE
  • Founded: 1991
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹33.224m
  • Shares outstanding: 4.57m
  • Website: https://www.margofinance.com

Number of Employees


Location

  • Margo Finance Limited
  • 301, Arcadia
  • 3rd Floor
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500206BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2002

Biography

Margo Finance Limited operates as a non-banking financial company in India. It engages in financing activities. The company was formerly known as Indocount Finance Limited and changed its name to Margo Fin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 12:34
End of Day Share Price2020/08/11 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.