Mehabe score: 6 G Factor: 4 Piotski Score: 9 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 9.
Description
RPG Life Sciences Ltd is engaged in the manufacturing and marketing of Formulations (Finished Dosage Forms) and Active Pharmaceutical Ingredients (APIs) in the domestic and international market.#
The company is a part of RPG group which is a diversified conglomerate with interests in areas of infrastructure, tyres, information technology, pharmaceuticals, energy and plantations. The group is headed by Harsh Goenka.
Main Points
Domestic Formulations Segment (~62% of revenues)#
The company develops, manufactures and markets branded formulations in India & Nepal.# Its product portfolio includes various products which are sold under its key brands i.e. Azaron, Mofetyl, Lomitil, Arpimune, Imunotac, Serenace, etc. It launched 7 new products during FY21.
It has presence in various therapeutic segments such as nephrology, rheumatology, Oncology, Orthopaedics, Gastroenterology, and others.Site:RPGLIFEMain Symbol:RPGLIFE
Stock trades at 484.0, above its 50dma 452.12. It also trades above its 200dma 409.36. The stock remains bullish on techicals
The 52 week high is at 511.00 and the 52week low is at 308.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 28.09% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 29.76%
Weakness
– The company has delivered a poor sales growth of 6.86% over past five years.
Competition
– The industry trades at a mean P/E of 31.8x. Sun Pharma.Inds. trades at the industry’s max P/E of 56.86x. RPGLIFE trades at a P/E of 19.9x
– Industry’s mean G-Factor is 2.2 while the mean Piotski score is 9.0. RPGLIFE has a G-Factor of 4 and Piotski scoreof 9.
– Average 1 month return for industry is -3.2%. The max 1- month return was given by RPG LifeScience.: a return of 8.03 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 108.0 cr compared to Rs 92.0 cr for period ended Jun 2020, a rise of 17.4%
Operating Profits reported at Rs 23.0 cr for period ended Jun 2021 vis-vis 17.0 for period ended Jun 2020 .
Operating Margins expanded 281.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 8.21 compared to Rs 4.18 for previous quarter ended Mar 2021 and Rs 5.48 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 406.0 cr for period ended TTM vis-vis sales of Rs 389.0 cr for the period ended Mar 2021, a growth of 4.2%. The 3 year sales cagr stood at 7.2%.
Operating margins expanded to 19.0% for period ended TTM vis-vis 18.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 45.0 cr for period ended TTM vis-vis sales of Rs 40.0 cr for the period ended Mar 2021, rising 11.1%.
Company recorded a healthy Net Profit CAGR of 59.9% 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 50.0 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 20.0% compared to 16.0% over the last 3 Years. – The stock has given a return of 56% on a 1 Year basis vis-vis a return of 16% over the last 3 Years. – The compounded sales growth on a TTM bassis is 4% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is 21% vis-vis a compounded profit growth of 44% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.0% vis-vis 0.01% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 27.92% vis-vis 27.89% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 28.09% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 29.76% – The company has delivered a poor sales growth of 6.86% over past five years.
