Mehabe score: 2 G Factor: 6 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 6 and Piotski score of 5.
Description
Orchid Pharma formerly Orchid Chemicals & Pharmaceuticals Limited, is involved in the development, manufacture and marketing of various bulk actives, formulations and nutraceuticals.Site:ORCHPHARMAMain Symbol:ORCHIDPHAR
Stock trades at 497.0, below its 50dma 1021.73 and below its 200dma 866.82. The stock remains bearish on technicals
The 52 week high is at 2680.00 and the 52week low is at 17.15
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Stock is trading at 3.11 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -12.42% over past five years.
-Promoters have pledged 32.68% of their holding.
-Earnings include an other income of Rs.15.23 Cr.
-Debtor days have increased from 77.27 to 110.05 days.
Competition
– The industry trades at a mean P/E of 23.1x. Sequent Scien. trades at the industry’s max P/E of 72.03x. ORCHPHARMA trades at a P/E of x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 8.0. ORCHPHARMA has a G-Factor of 6 and Piotski scoreof 5.
– Average 1 month return for industry is 0.8%. The max 1- month return was given by Gland Pharma: a return of 26.18 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 120.0 cr compared to Rs 87.0 cr for period ended Mar 2020, a rise of 37.9%
Company reported negative operating profit of Rs -4.0 cr for period ended Mar 2021. For same period last year, operating profit was -20.0
The EPS for Mar 2021 was Rs -6.06 compared to Rs -10.96 for previous quarter ended Dec 2020 and Rs -9.52 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 450.0 cr for period ended Mar 2021 vis-vis sales of Rs 508.0 cr for the period ended Mar 2020, a fall of 12.9%. The 3 year sales cagr stood at -13.0%.
Operating margins expanded to 6.0% for period ended Mar 2021 vis-vis -5.0% for period ended Mar 2020, expansion of 1100.0 bps.
Net Profit reported at Rs -117.0 cr for period ended Mar 2021 vis-vis sales of Rs -131.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 -14.0% compared to 0% over the last 3 Years. – The stock has given a return of 9017% on a 1 Year basis vis-vis a return of 312% over the last 3 Years. – The compounded sales growth on a TTM bassis is -11% vis-vis a compounded sales growth of -13% over the last 3 Years. – The compounded profit growth on a TTM basis is 11% vis-vis a compounded profit growth of 19% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 1.82% vis-vis 0.04% for Mar 2021 – Public shareholding has risen for the period ended Jun 2021. The Jun 2021 public holding stood at 4.51% vis-vis 0.89% for Mar 2021
Conclusion
– has reduced debt. – Stock is trading at 3.11 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -12.42% over past five years.
-Promoters have pledged 32.68% of their holding.
-Earnings include an other income of Rs.15.23 Cr.
-Debtor days have increased from 77.27 to 110.05 days.
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 below its 50 DMA 1021.73 and is trading at 497.0. Shows a near term lack of buying interest.
