Mehabe score: 4 G Factor: 4 Piotski Score: 7 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 7.
Description
Sunil Healthcare is engaged a manufacturer of Empty Hard Gelatinand HPMC Capsule Shells. the company is also doing Trading of Food Items.Site:537253Main Symbol:SUNLOC
Stock trades at 36.7, above its 50dma 32.46. It also trades above its 200dma 28.44. The stock remains bullish on techicals
The 52 week high is at 43.75 and the 52week low is at 18.70
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.86 times its book value
– is expected to give good quarter
-Debtor days have improved from 131.54 to 94.72 days.
Weakness
– has low interest coverage ratio.
– has a low return on equity of -4.37% for last 3 years.
-Earnings include an other income of Rs.5.65 Cr.
Competition
– The industry trades at a mean P/E of 28.2x. Jubilant Ingrevia trades at the industry’s max P/E of 147.56x. 537253 trades at a P/E of x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 9.0. 537253 has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 14.5%. The max 1- month return was given by C D S L: a return of 51.11 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 26.51 cr compared to Rs 21.63 cr for period ended Jun 2020, a rise of 22.6%
Operating Profits reported at Rs 2.69 cr for period ended Jun 2021 vis-vis 2.68 for period ended Jun 2020 .
Operating Margins contracted -224.3 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.2 compared to Rs -0.59 for previous quarter ended Mar 2021 and Rs -0.2 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 95.17 cr for period ended TTM vis-vis sales of Rs 90.29 cr for the period ended Mar 2021, a growth of 5.1%. The 3 year sales cagr stood at 5.6%.
Operating margins shrank to 5.61% for period ended TTM vis-vis 5.9% for period ended Mar 2021, contraction of 29.0 bps.
Net Profit reported at Rs -0.23 cr for period ended TTM vis-vis sales of Rs -0.64 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 24.41 cr for period ended Mar 2021 vis-vis Rs 4.31 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 84% on a 1 Year basis vis-vis a return of -13% over the last 3 Years. – The compounded sales growth on a TTM bassis is 30% vis-vis a compounded sales growth of -0% over the last 3 Years. – The compounded profit growth on a TTM basis is 95% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 26.37% vis-vis 26.37% for Mar 2021
Conclusion
– has reduced debt.
-Stock is trading at 0.86 times its book value
– is expected to give good quarter
-Debtor days have improved from 131.54 to 94.72 days. – has low interest coverage ratio.
– has a low return on equity of -4.37% for last 3 years.
-Earnings include an other income of Rs.5.65 Cr.
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 32.46 and is trading at 36.7, thus bullish price action wise.
