Mehabe score: 2 G Factor: 2 Piotski Score: 7 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 7.
Description
Ind-Swift Laboratories is engaged in the Business of Pharmaceuticals.Site:INDSWFTLABMain Symbol:INDSWFTLAB
Stock trades at 61.0, below its 50dma 73.64 and below its 200dma 76.01. The stock remains bearish on technicals
The 52 week high is at 127.45 and the 52week low is at 43.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.60 times its book value
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 6.42% over past five years.
– has a low return on equity of -3.37% for last 3 years.
-Promoters have pledged 86.87% of their holding.
– has high debtors of 177.06 days.
-Promoter holding has decreased over last 3 years: -10.18%
Competition
– The industry trades at a mean P/E of 30.6x. Piramal Enterp. trades at the industry’s max P/E of 46.88x. INDSWFTLAB trades at a P/E of 32.6x
– Industry’s mean G-Factor is 1.9 while the mean Piotski score is 9.0. INDSWFTLAB has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is -5.1%. The max 1- month return was given by Piramal Enterp.: a return of -1.52 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 236.0 cr compared to Rs 228.0 cr for period ended Sep 2020, a rise of 3.5%
Operating Profits reported at Rs 56.0 cr for period ended Sep 2021 vis-vis 49.0 for period ended Sep 2020 .
Operating Margins expanded 223.8 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 4.14 compared to Rs 3.18 for previous quarter ended Jun 2021 and Rs 1.68 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 938.0 cr for period ended TTM vis-vis sales of Rs 891.0 cr for the period ended Mar 2021, a growth of 5.0%. The 3 year sales cagr stood at 7.4%.
Net Profit reported at Rs 26.0 cr for period ended TTM vis-vis sales of Rs -3.0 cr for the period ended Mar 2021, rising 111.5%.
Company reported a poor Net Profit CAGR of -3.6% 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 135.0 cr for period ended Mar 2021 vis-vis Rs 125.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 16% 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 17% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is 223% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.01% vis-vis 0.05% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 38.5% vis-vis 38.46% for Jun 2021
Conclusion
– Stock is trading at 0.60 times its book value – has low interest coverage ratio.
-The company has delivered a poor sales growth of 6.42% over past five years.
– has a low return on equity of -3.37% for last 3 years.
-Promoters have pledged 86.87% of their holding.
– has high debtors of 177.06 days.
-Promoter holding has decreased over last 3 years: -10.18%
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 73.64 and is trading at 61.0. 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
