Mehabe score: 2 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
Zenith Health Care is engaged in the business of Pharmaceutical products.Site:530665Main Symbol:ZENITHHE
Stock trades at 7.04, below its 50dma 7.49 and below its 200dma 7.55. The stock remains bearish on technicals
The 52 week high is at 15.38 and the 52week low is at 3.67
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 5.53 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 28.74%
– has a low return on equity of 6.23% for last 3 years.
-Debtor days have increased from 36.59 to 44.89 days.
Competition
– The industry trades at a mean P/E of 23.3x. Zenith Health trades at the industry’s max P/E of 94.58x. 530665 trades at a P/E of 94.6x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 9.0. 530665 has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is -6.6%. The max 1- month return was given by Amrutanjan Healt: a return of 1.87 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 5.01 cr compared to Rs 3.26 cr for period ended Sep 2020, a rise of 53.7%
Operating Profits reported at Rs 0.13 cr for period ended Sep 2021 vis-vis 0.26 for period ended Sep 2020 .
Operating Margins contracted -538.1 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.02 compared to Rs 0.05 for previous quarter ended Jun 2021 and Rs 0.04 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 14.78 cr for period ended TTM vis-vis sales of Rs 13.74 cr for the period ended Mar 2021, a growth of 7.0%. The 3 year sales cagr stood at 14.6%.
Operating margins shrank to 1.76% for period ended TTM vis-vis 2.62% for period ended Mar 2021, contraction of 86.0 bps.
Net Profit reported at Rs 0.4 cr for period ended TTM vis-vis sales of Rs 0.44 cr for the period ended Mar 2021, falling 10.0%.
Company recorded a healthy Net Profit CAGR of 41.9% 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 7.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 22% on a 1 Year basis vis-vis a return of 61% over the last 3 Years. – The compounded sales growth on a TTM bassis is 2% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is -61% vis-vis a compounded profit growth of 18% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 70.87% vis-vis 70.87% for Jun 2021
Conclusion
– is almost debt free. – Stock is trading at 5.53 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 28.74%
– has a low return on equity of 6.23% for last 3 years.
-Debtor days have increased from 36.59 to 44.89 days.
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 7.49 and is trading at 7.04. 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
