Mehabe score: 4 G Factor: 4 Piotski Score: 5 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 5.
Description
Ortin Laboratories Ltd engaged in manufactures and sells drug intermediates and pharmaceuticals.Site:ORTINLABMain Symbol:ORTINLAABS
Stock trades at 38.6, above its 50dma 33.43. It also trades above its 200dma 26.18. The stock remains bullish on techicals
The 52 week high is at 52.25 and the 52week low is at 13.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Promoter holding has decreased over last quarter: -24.44%
-Promoter holding is low: 10.40%
– has a low return on equity of 1.74% for last 3 years.
Competition
– The industry trades at a mean P/E of 32.3x. Sun Pharma.Inds. trades at the industry’s max P/E of 55.18x. ORTINLAB trades at a P/E of 6.8x
– Industry’s mean G-Factor is 2.2 while the mean Piotski score is 9.0. ORTINLAB has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 6.8%. The max 1- month return was given by Ortin Labs.: a return of 34.97 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1.76 cr compared to Rs 72.25 cr for period ended Mar 2020, a fall of 97.6%
Operating Profits reported at Rs 0.21 cr for period ended Mar 2021 vis-vis 5.22 for period ended Mar 2020 .
Operating Margins expanded 470.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.98 compared to Rs 0.36 for previous quarter ended Dec 2020 and Rs 1.02 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 8.17 cr for period ended Mar 2021 vis-vis sales of Rs 197.36 cr for the period ended Mar 2020, a fall of 2315.7%. The 3 year sales cagr stood at -53.2%.
Operating margins expanded to 15.18% for period ended Mar 2021 vis-vis 2.89% for period ended Mar 2020, expansion of 1229.0 bps.
Net Profit reported at Rs 0.95 cr for period ended Mar 2021 vis-vis sales of Rs -0.56 cr for the period ended Mar 2020, rising 158.9%.
Company recorded a healthy Net Profit CAGR of 11.8% 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -2.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 133% 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 62% vis-vis a compounded sales growth of 47% over the last 3 Years. – The compounded profit growth on a TTM basis is 954% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 89.6% vis-vis 65.16% for Dec 2020
Conclusion
– is expected to give good quarter – Promoter holding has decreased over last quarter: -24.44%
-Promoter holding is low: 10.40%
– has a low return on equity of 1.74% for last 3 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 33.43 and is trading at 38.6, thus bullish price action wise.
