Home Investment Memo: 524768

Investment Memo: 524768

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Our Rating:

Mehabe score: 5
G Factor: 6
Piotski Score: 8
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 6 and Piotski score of 8.

Description

Emmessar Biotech & Nutrition is a global healthcare company that manufactures and markets healthcare & nutritional products.(Source : Company web-site)Site: 524768Main Symbol: EMMESSA

Price Chart

Market Cap: Rs 27.8 cr Price: 55.6 Trading pe: 19.2x
Book-value: 11.4/share Div yield: 0.00 % Earning yield: 9.36%
Face-value: 10.0/share 52week high: 54.50 52week low: 12.09

Technical Analysis

  • Stock trades at 55.6, above its 50dma 40.16. It also trades above its 200dma 27.02. The stock remains bullish on techicals
  • The 52 week high is at 54.50 and the 52week low is at 12.09

Price Chart

P/E Chart

Sales and Margin

Strengths

– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 26.14%

Weakness

– Though the company is reporting repeated profits, it is not paying out dividend
-Earnings include an other income of Rs.1.47 Cr.
-Debtor days have increased from 55.97 to 141.51 days.

Competition

– The industry trades at a mean P/E of 30.6x. Pidilite Inds. trades at the industry’s max P/E of 103.19x. 524768 trades at a P/E of 19.2x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 8.0. 524768 has a G-Factor of 6 and Piotski scoreof 8.
– Average 1 month return for industry is 19.0%. The max 1- month return was given by Gujarat Fluoroch: a return of 67.55 %

Quarterly Results

  • Sales for period ended Jun 2021 is Rs 0.02 cr compared to Rs 0.29 cr for period ended Jun 2020, a fall of 93.1%
  • Company reported negative operating profit of Rs -0.28 cr for period ended Jun 2021. For same period last year, operating profit was -0.15
  • The EPS for Jun 2021 was Rs 0.18 compared to Rs 1.04 for previous quarter ended Mar 2021 and Rs 0.06 for Jun 2020

Profit & Loss Statement

Profit&Loss Comments

  • Company reported sales of Rs 6.72 cr for period ended TTM vis-vis sales of Rs 6.99 cr for the period ended Mar 2021, a fall of 4.0%. The 3 year sales cagr stood at 120.1%.
  • Operating margins shrank to 10.86% for period ended TTM vis-vis 12.02% for period ended Mar 2021, contraction of 116.0 bps.
  • Net Profit reported at Rs 1.51 cr for period ended TTM vis-vis sales of Rs 1.45 cr for the period ended Mar 2021, rising 4.0%.
  • Company recorded a healthy Net Profit CAGR of 41.8% 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 stock has given a return of 338% on a 1 Year basis vis-vis a return of 32% over the last 3 Years.
– The compounded sales growth on a TTM bassis is 106% vis-vis a compounded sales growth of 77% over the last 3 Years.
– The compounded profit growth on a TTM basis is 51% vis-vis a compounded profit growth of 17% over the last 3 Years.

Ratios

Shareholding Pattern

– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 41.31% vis-vis 41.31% for Mar 2021

Conclusion

– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 26.14% – Though the company is reporting repeated profits, it is not paying out dividend
-Earnings include an other income of Rs.1.47 Cr.
-Debtor days have increased from 55.97 to 141.51 days.

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