Mehabe score: 2 G Factor: 1 Piotski Score: 6 The stock has a rating SELL. 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 1 and Piotski score of 6.
Description
Vivanza Biosciences is engaged in Business of Trading of Pharmaceutical Products.Site:530057Main Symbol:VIVANZA
Stock trades at 101.0, below its 50dma 110.14. However it is trading above its 200dma 97.71. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 110.14.
The 52 week high is at 180.35 and the 52week low is at 12.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 11.99 times its book value
– has low interest coverage ratio.
– has a low return on equity of -5.30% for last 3 years.
– has high debtors of 241.88 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 51.3x. Vivanza Biosci. trades at the industry’s max P/E of 404.0x. 530057 trades at a P/E of 404.0x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 7.0. 530057 has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is 1.7%. The max 1- month return was given by Rain Industries: a return of 35.22 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 0.2 cr compared to Rs 0.44 cr for period ended Jun 2020, a fall of 54.5%
Company reported operating profit of Rs 0.01 cr for period ended Jun 2021, operating profit margin at 5.0 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 0.92 compared to Rs -0.38 for previous quarter ended Mar 2021 and Rs -0.4 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 8.98 cr for period ended TTM vis-vis sales of Rs 9.22 cr for the period ended Mar 2021, a fall of 2.7%. The 3 year sales cagr stood at 59.3%.
Operating margins expanded to 3.12% for period ended TTM vis-vis 1.41% for period ended Mar 2021, expansion of 171.0 bps.
Net Profit reported at Rs 0.59 cr for period ended TTM vis-vis sales of Rs 0.1 cr for the period ended Mar 2021, rising 0%.
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 3.0% compared to -5.0% over the last 3 Years. – The stock has given a return of 711% on a 1 Year basis vis-vis a return of 31% over the last 3 Years. – The compounded sales growth on a TTM bassis is -2% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 150% vis-vis a compounded profit growth of -25% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 52.2% vis-vis 52.2% for Mar 2021
Conclusion
– is almost debt free. – Stock is trading at 11.99 times its book value
– has low interest coverage ratio.
– has a low return on equity of -5.30% for last 3 years.
– has high debtors of 241.88 days.
-‘s cost of borrowing seems high
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 110.14 and is trading at 101.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
