Mehabe score: 5 G Factor: 4 Piotski Score: 8 The stock has a rating . 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 8.
Description
Hester Biosciences Ltd is one of the leading animal health care companies & the second largest poultry vaccine manufacturer in India. Founded by Mr. Rajiv Gandhi in 1987, it has now a presence in over 30 countries & has a key market in India, Nepal & Tanzania
Partners with Bill & Melinda Gates Foundation, GALVmed, Golchha Organisation, Novapharma, etc.
Also, provides services like seroprofiling kits and diagnostic labs for poultry flocks, and mastitis control programs for cattle.
Main Points
Revenue Mix:
India – 84%, Nepal – 8%, Africa 1.5%.Site:HESTERBIOMain Symbol:HESTERBIO
Stock trades at 2412.0, below its 50dma 2495.55. However it is trading above its 200dma 2098.81. 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 2495.55.
The 52 week high is at 3180.00 and the 52week low is at 1246.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has been maintaining a healthy dividend payout of 22.16%
Weakness
– Stock is trading at 8.99 times its book value
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 38.4x. Hester Bios trades at the industry’s max P/E of 56.05x. HESTERBIO trades at a P/E of 56.0x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 9.0. HESTERBIO has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 7.8%. The max 1- month return was given by Lincoln Pharma.: a return of 20.38 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 64.18 cr compared to Rs 43.62 cr for period ended Mar 2020, a rise of 47.1%
Operating Profits reported at Rs 19.78 cr for period ended Mar 2021 vis-vis 7.19 for period ended Mar 2020 .
Operating Margins expanded 1433.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 11.39 compared to Rs 14.52 for previous quarter ended Dec 2020 and Rs 3.22 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 214.0 cr for period ended Mar 2021 vis-vis sales of Rs 183.0 cr for the period ended Mar 2020, a healthy growth of 14.5%. The 3 year sales cagr stood at 16.3%.
Operating margins expanded to 32.0% for period ended Mar 2021 vis-vis 30.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 34.0 cr for period ended Mar 2021 vis-vis sales of Rs 29.0 cr for the period ended Mar 2020, rising 14.7%.
Company recorded a Net Profit CAGR of 9.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 58.0 cr for period ended Mar 2021 vis-vis Rs 37.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 17.0% compared to 19.0% over the last 3 Years. – The stock has given a return of 86% on a 1 Year basis vis-vis a return of 26% over the last 3 Years. – The compounded sales growth on a TTM bassis is 17% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is 27% vis-vis a compounded profit growth of 13% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.58% vis-vis 0.6% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 45.29% vis-vis 44.84% for Mar 2021
Conclusion
– has been maintaining a healthy dividend payout of 22.16% – Stock is trading at 8.99 times its book value
– might be capitalizing the interest cost
