Mehabe score: 6 G Factor: 3 Piotski Score: 7 The stock has a rating OBSERVE & 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 3 and Piotski score of 7.
Description
Pfizer is engaged in the business of manufacturing, marketing, trading and export of pharmaceutical products.Site:PFIZERMain Symbol:PFIZER
Stock trades at 6015.0, above its 50dma 5514.18. It also trades above its 200dma 5073.33. The stock remains bullish on techicals
The 52 week high is at 6107.65 and the 52week low is at 4179.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 117.57%
-Debtor days have improved from 26.81 to 21.15 days.
Weakness
– Stock is trading at 11.50 times its book value
-The company has delivered a poor sales growth of 2.15% over past five years.
Competition
– The industry trades at a mean P/E of 64.4x. Novartis India trades at the industry’s max P/E of 111.63x. PFIZER trades at a P/E of 48.0x
– Industry’s mean G-Factor is 4.3 while the mean Piotski score is 8.0. PFIZER has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 3.0%. The max 1- month return was given by Novartis India: a return of 8.74 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 749.0 cr compared to Rs 515.0 cr for period ended Jun 2020, a rise of 45.4%
Operating Profits reported at Rs 286.0 cr for period ended Jun 2021 vis-vis 186.0 for period ended Jun 2020 .
Operating Margins expanded 206.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 43.7 compared to Rs 21.98 for previous quarter ended Mar 2021 and Rs 27.2 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2473.0 cr for period ended TTM vis-vis sales of Rs 2239.0 cr for the period ended Mar 2021, a growth of 9.5%. The 3 year sales cagr stood at 5.9%.
Operating margins expanded to 33.0% for period ended TTM vis-vis 32.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 573.0 cr for period ended TTM vis-vis sales of Rs 498.0 cr for the period ended Mar 2021, rising 13.1%.
Company recorded a healthy Net Profit CAGR of 10.1% 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 427.0 cr for period ended Mar 2021 vis-vis Rs 323.0 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 16.0% over the last 3 Years. – The stock has given a return of 39% 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 17% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is 10% vis-vis a compounded profit growth of 11% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 1.95% vis-vis 1.89% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 19.17% vis-vis 19.55% for Mar 2021
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 117.57%
-Debtor days have improved from 26.81 to 21.15 days. – Stock is trading at 11.50 times its book value
-The company has delivered a poor sales growth of 2.15% over past five years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 5514.18 and is trading at 6015.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
