Mehabe score: 6 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Vikram Thermo (India) is engaged in the Business of manufacturing and selling of basic pharma copolymer Drug Coat, Diphenenyl Oxide, etc. #
Main Points
Product Portfolio
Pharma Polymers – The company offers complete solutions for various applications in coating segment. It offers methacrylic acid based pharma polymers & customized ready to use pharma polymers under its brands DRUGCOAT® & DRCOAT respectively. Its pharma polymers are used for enteric coating taste making and protective coating, sustained release products, immediate release film coating products and moisture barrier products.
– The company is a leading player of Diphenyl Oxide (Dihpenyl Ether) used as Perfumery stabilizer and for manufacturing heat transfer fluid in India since 1985. The chemicals is used as a perfumery component in detergents, soaps, essence sticks, etc.Site:530477
Market Cap:
Rs 123 cr
Price:
196.0
Trading pe:
10.2x
Book-value:
87.0/share
Div yield:
0.77 %
Earning yield:
13.48%
Face-value:
10.0/share
52week high:
223.00
52week low:
81.05
Technical Analysis
Stock trades at 196.0, above its 50dma 189.31. It also trades above its 200dma 169.33. The stock remains bullish on techicals
The 52 week high is at 223.00 and the 52week low is at 81.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 23.33% CAGR over last 5 years
Weakness
–
Competition
– The industry trades at a mean P/E of 29.0x. Sun Pharma.Inds. trades at the industry’s max P/E of 55.61x. 530477 trades at a P/E of 10.2x
– Industry’s mean G-Factor is 2.5 while the mean Piotski score is 8.0. 530477 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 6.8%. The max 1- month return was given by Piramal Enterp.: a return of 35.71 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 17.73 cr compared to Rs 13.41 cr for period ended Mar 2020, a rise of 32.2%
Operating Profits reported at Rs 1.83 cr for period ended Mar 2021 vis-vis 2.31 for period ended Mar 2020 .
Operating Margins contracted -690.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.12 compared to Rs 4.13 for previous quarter ended Dec 2020 and Rs 2.22 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 74.0 cr for period ended Mar 2021 vis-vis sales of Rs 56.0 cr for the period ended Mar 2020, a healthy growth of 24.3%. The 3 year sales cagr stood at 14.7%.
Operating margins expanded to 24.0% for period ended Mar 2021 vis-vis 21.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 12.0 cr for period ended Mar 2021 vis-vis sales of Rs 7.0 cr for the period ended Mar 2020, rising 41.7%.
Company recorded a healthy Net Profit CAGR of 81.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 22.0% compared to 16.0% over the last 3 Years. – The stock has given a return of 119% on a 1 Year basis vis-vis a return of 30% over the last 3 Years. – The compounded sales growth on a TTM bassis is 32% vis-vis a compounded sales growth of 14% over the last 3 Years. – The compounded profit growth on a TTM basis is 67% vis-vis a compounded profit growth of 74% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 34.5% vis-vis 34.5% for Dec 2020
Conclusion
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 23.33% CAGR over last 5 years –
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 189.31 and is trading at 196.0, thus bullish price action wise.
