Arihant Capital Markets Ltd

Arihant Capital Markets Ltd Other Financial Services

Market Cap.: ₹ 111.82 Cr.

Current Price: ₹ 53.70

Book Value: ₹ 45.75

Stock P/E: 8.46

Dividend Yield: 1.40%

Face Value: ₹ 5.00

Looks like a good bet

Net Profit: 13

Arihant looks great 

Check for capability of management focus on shareholder letter how is business.

It has generated positive operating cash flows and negative financing cash flows for most of the past 10 years. In fact it has generated hefty 65 cr operating cash flows over the past 10 years despite operating in the cyclical capital markets industry. Being asset light, these operating cash flows are reflected in the zero debt status and cash balance of 60+ cr (excluding cash belonging to creditors).

Also company is carrying too much of cash on books deposited with the banks ( 60 Cr +) .

Based on companies investment portfolio I can say that management is good.

Company purchase freehold land of abt 5.4 cr in FY 12 and 5.6 cr in FY 14.

ARIHANT FUTURES AND COMMODITIES LTD.

ARIHANT FINANCIAL SERVICES LTD.

ARIHANT LIFESPACE INFRA DEVELOPERS

ARIHANT INSURANCE BROKING SERVICES

AHINSA LIFESPACE INFRAHEIGHT LIMITED

ARIHANT HOUSING FINANCE

Business:

  Equities and Derivatives Broking

 Online and mobile trading

 Currency Derivatives Broking

 IPO, Bonds (including NHAI, REC, NABARD)

  Mutual Fund Investment and Advisory

  Merchant Banking (Category I)

Website also looks good.

How many clients it has although I don’t see lot of opportunity here not a bank or not like new technology dependent Investment broker like Share khan, Zerodha?

what about % of total profit from baking service

  •   Capital market risk is inherent in our business: The major sources of our revenues are derived from equity brokerage business.
  • Hence, like other players in the market, our business is highly sensitive to economic and political conditions prevalent in the
  • country and across the globe. Any sustained downturn in general economic conditions or Indian equity markets and severe
  • market uctuations would likely result in reduced client trading volumes and net revenues, and hence, will have a material
  •   Technological risk plays a signi cant role in our industry: The substantial amount of costs involved in deployment of technology
  •   Systems failures, delays and capacity constraints could harm our business
  •   We are subject to various legal actions led against us by interested parties: In our ordinary course of business, investors,

Arihant looks okay good investment in good companies established companies .. can buy but I don’t see a very long term prospect with current scenario as brokerage firm doesn’t have any aha factor. It is not offering something which other players are not offering. Share price will go up as overall the sector is growing but can it get a chunk out of other companies in the same sector?

Check how is infra business how are the buyers are they satisfied or angry ?

 

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