Mehabe score: 3 G Factor: 2 Piotski Score: 5 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 2 and Piotski score of 5.
Description
Concord Drugs is engaged in the business of manufacture licensed drugs based on the formulations approved.Site:538965Main Symbol:CONCORD
Stock trades at 28.1, below its 50dma 30.66 and below its 200dma 28.48. The stock remains bearish on technicals
The 52 week high is at 44.95 and the 52week low is at 13.68
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.92 times its book value
-Debtor days have improved from 231.97 to 147.32 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 0.27% over past five years.
– has a low return on equity of 1.64% for last 3 years.
-Earnings include an other income of Rs.3.86 Cr.
Competition
– The industry trades at a mean P/E of 29.1x. Concord Drugs trades at the industry’s max P/E of 61.43x. 538965 trades at a P/E of 61.4x
– Industry’s mean G-Factor is 2.1 while the mean Piotski score is 9.0. 538965 has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is -4.5%. The max 1- month return was given by Piramal Enterp.: a return of 19.01 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 20.22 cr compared to Rs 18.2 cr for period ended Jun 2020, a rise of 11.1%
Operating Profits reported at Rs 2.27 cr for period ended Jun 2021 vis-vis 0.96 for period ended Jun 2020 .
Operating Margins expanded 595.2 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.79 compared to Rs 0.39 for previous quarter ended Mar 2021 and Rs 0.19 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 53.38 cr for period ended TTM vis-vis sales of Rs 51.36 cr for the period ended Mar 2021, a growth of 3.8%. The 3 year sales cagr stood at 3.5%.
Operating margins expanded to 8.49% for period ended TTM vis-vis 6.27% for period ended Mar 2021, expansion of 222.0 bps.
Net Profit reported at Rs 3.81 cr for period ended TTM vis-vis sales of Rs 3.28 cr for the period ended Mar 2021, rising 13.9%.
Company recorded a healthy Net Profit CAGR of 110.2% over the last 3 years
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 2.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 91% on a 1 Year basis vis-vis a return of 0% over the last 3 Years. – The compounded sales growth on a TTM bassis is 0% vis-vis a compounded sales growth of 0% over the last 3 Years. – The compounded profit growth on a TTM basis is 21% vis-vis a compounded profit growth of 8% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 55.62% vis-vis 55.62% for Mar 2021
Conclusion
– Stock is trading at 0.92 times its book value
-Debtor days have improved from 231.97 to 147.32 days. – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 0.27% over past five years.
– has a low return on equity of 1.64% for last 3 years.
-Earnings include an other income of Rs.3.86 Cr.
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 30.66 and is trading at 28.1. 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
