Mehabe score: 4 G Factor: 6 Piotski Score: 7 The stock has a rating 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 6 and Piotski score of 7.
Description
Ishita Drugs & Industries is engaged in the business of Bulk Drugs, Fine Chemicals and Intermediates.Site:524400Main Symbol:ISHITADR
Stock trades at 38.4, above its 50dma 37.9. It also trades above its 200dma 31.01. The stock remains bullish on techicals
The 52 week high is at 54.00 and the 52week low is at 19.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 8.52% for last 3 years.
-Earnings include an other income of Rs.0.31 Cr.
Competition
– The industry trades at a mean P/E of 20.9x. Sequent Scien. trades at the industry’s max P/E of 74.37x. 524400 trades at a P/E of 13.8x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. 524400 has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 2.7%. The max 1- month return was given by Hikal: a return of 34.79 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 2.89 cr compared to Rs 2.3 cr for period ended Jun 2020, a rise of 25.7%
Operating Profits reported at Rs 0.17 cr for period ended Jun 2021 vis-vis 0.17 for period ended Jun 2020 .
Operating Margins contracted -150.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.47 compared to Rs 1.5 for previous quarter ended Mar 2021 and Rs 0.3 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 14.54 cr for period ended TTM vis-vis sales of Rs 13.95 cr for the period ended Mar 2021, a growth of 4.1%. The 3 year sales cagr stood at 16.9%.
Operating margins shrank to 6.4% for period ended TTM vis-vis 6.59% for period ended Mar 2021, contraction of 19.0 bps.
Net Profit reported at Rs 0.88 cr for period ended TTM vis-vis sales of Rs 0.83 cr for the period ended Mar 2021, rising 5.7%.
Company recorded a healthy Net Profit CAGR of 36.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
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 11.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 71% on a 1 Year basis vis-vis a return of 30% over the last 3 Years. – The compounded sales growth on a TTM bassis is -6% vis-vis a compounded sales growth of 26% over the last 3 Years. – The compounded profit growth on a TTM basis is 51% vis-vis a compounded profit growth of 49% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 52.13% vis-vis 52.13% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 8.52% for last 3 years.
-Earnings include an other income of Rs.0.31 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 37.9 and is trading at 38.4, thus bullish price action wise.
