Dear all, I’m a 20 year old student of science with a desire to become a decent investor. I’m a novice and I’m here to grow as an investor. It’s the first time I’m presenting a stock idea on this forum. If I’ve erred in my method of presentation please correct me.
Stock Name: Sumedha Fiscal
Sumedha Fiscal is a Kolkata based, BSE listed financial services company.
It has 3 major business divisions:
- INVESTMENT BANKING:
Investment banking is a major source of business for the company. It generates more than half of the company’s revenue. As the economy improves, I believe, their investment baking division will perform even better.
Any company could be in need of funds and may raise it from financial institutions -banks, investment organizations, etc. Even governments raise money at regular intervals by issuing bonds. When the sum to be raised is huge, several organizations may come together and form a syndicate to lend money to the organization in need. These activities are complex. They need to be planned with precision and well distributed. It’s an industry that functions on trust. Sumedha Fiscal is a veteran in this industry and must have built solid contacts. There’s no reason why their business wouldn’t improve when the economy gets better. They have all the ingredients to get business for their investment banking division- experience, expertise and trust.
STOCK BROKING DIVISION : They have 1600 equity clients. Scope for improvement exists, which might lead to increased revenue.
WEALTH MANAGEMENT DIVISION : Financial planning and wealth management services are provided by the company. It might prove to be difficult to compete with the financial services behemoths who also offer this service.
The company has cash and equivalents of 8 crores and reserves of 26 crores. It’s available for a market capitalisation of 35 crores.
This company has never surprised investors with a loss even when times were tough and the economy was in doldrums. It is a consistent dividend paying, tax paying company. Audited by leading auditors from Kolkata. Management appears to be decent and there’s a healthy promoter stake. There are not many related party transactions. Its net profot margins are comparable with peers in the industry.There’s transparency which is indicated by the well detailed website. Current time is favourable for the company. It’s grossly undervalued compared to its peers operating in the same business divisions. This company definitely deserves attention from the investing fraternity. Is there something I’m missing? If so, please guide me.