Mehabe score: 7 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
Supriya Lifescience is engaged in the manufacturing of Active pharmaceutical ingredients (APIs). As of March 31, 2021, the company produces 38 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti-allergic.[1] Site:SUPRIYA Main Symbol:SUPRIYA
Stock trades at 463.0, above its 50dma 452.41. It also trades above its 200dma 409.71. The stock remains bullish on techicals
The 52 week high is at 601.90 and the 52week low is at 383.15
Price Chart
P/E Chart
Sales and Margin
Strengths
– has a good return on equity (ROE) track record: 3 Years ROE 58.43%
Weakness
– Stock is trading at 14.07 times its book value
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 27.4x. Biocon trades at the industry’s max P/E of 64.53x. SUPRIYA trades at a P/E of 30.1x
– Industry’s mean G-Factor is 2.0 while the mean Piotski score is 9.0. SUPRIYA has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 1.0%. The max 1- month return was given by Torrent Pharma.: a return of 3.99 %
Quarterly Results
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Company reported operating profit of Rs 38.0 cr for period ended Dec 2021 and operating profit margin at 32.5 % for same period.
The EPS for quarter ended Dec 2021 is Rs 4.93 compared to Rs 7.96 for previous quarter ended Sep 2021.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 385.0 cr for period ended Mar 2021 vis-vis sales of Rs 312.0 cr for the period ended Mar 2020, a healthy growth of 19.0%. The 3 year sales cagr stood at 21.8%.
Operating margins expanded to 43.0% for period ended Mar 2021 vis-vis 32.0% for period ended Mar 2020, expansion of 1100.0 bps.
Net Profit reported at Rs 124.0 cr for period ended Mar 2021 vis-vis sales of Rs 73.0 cr for the period ended Mar 2020, rising 41.1%.
Company recorded a healthy Net Profit CAGR of 139.7% 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 59.0% compared to 58.0% over the last 3 Years. – The stock has given a return of % on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 24% vis-vis a compounded sales growth of 22% over the last 3 Years. – The compounded profit growth on a TTM basis is 68% vis-vis a compounded profit growth of 142% over the last 3 Years.
Ratios
Shareholding Pattern
Conclusion
– has a good return on equity (ROE) track record: 3 Years ROE 58.43% – Stock is trading at 14.07 times its book value
– might be capitalizing the interest cost
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 452.41 and is trading at 463.0 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
