Investment Pick:- Equitas Holdings Ltd. Equitas Holdings is engaged in a non-deposit taking systemically Important Core Investment Company from the Reserve Bank of India (RBI) to carry on the business as a Non-Banking Financial Institution. The activity of the company is to making investment in subsidiary companies and providing loans to them. It has no other operations. It provides micro finance, vehicle finance and housing finance services.
Current Price- 52 52 Week high/low- 136.55/32.5 Short Term Target- 75-80 Long Term Target- 150-200
Strengths- Annual Net Profits improving from last 2 years. FIIs and DIIs increasing their shareholding since last few quarters. Stock is trading at 0.60 times its book value. Investments: 2344cr Cash Equivalents: 2537cr
Opportunities- Huge Demand will be triggered post Lock Down from Undeserved and Unserved category, Strong Cash Flow will play important role. Rising Delivery Percentage Compared to Previous Day and Month, Strong Volumes Stock with Lowest PE in NBFC sector (PE 8.14), Cheapest among all NBFCs.
Stock trading at very attractive valuation, Quality long time financial performance within the industry, breakout at technical levels with high volume