Mehabe score: 4 G Factor: 1 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 1 and Piotski score of 7.
Description
Zenlabs Ethica is a pharmaceutical company. It deals in marketing and distribution of pharmaceutical products.Site:530697Main Symbol:ZENLABS
Stock trades at 40.0, above its 50dma 34.33. It also trades above its 200dma 29.82. The stock remains bullish on techicals
The 52 week high is at 46.70 and the 52week low is at 19.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Stock is trading at 3.10 times its book value
– has a low return on equity of 5.98% for last 3 years.
Competition
– The industry trades at a mean P/E of 52.2x. 3M India trades at the industry’s max P/E of 181.62x. 530697 trades at a P/E of 31.4x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 7.0. 530697 has a G-Factor of 1 and Piotski scoreof 7.
– Average 1 month return for industry is 1.1%. The max 1- month return was given by Rain Industries: a return of 21.49 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 18.9 cr compared to Rs 12.96 cr for period ended Jun 2020, a rise of 45.8%
Operating Profits reported at Rs 0.45 cr for period ended Jun 2021 vis-vis 0.12 for period ended Jun 2020 .
Operating Margins expanded 145.5 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 0.46 compared to Rs 0.52 for previous quarter ended Mar 2021 and Rs 0.15 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 62.58 cr for period ended TTM vis-vis sales of Rs 56.64 cr for the period ended Mar 2021, a growth of 9.5%. The 3 year sales cagr stood at -1.4%.
Operating margins expanded to 2.32% for period ended TTM vis-vis 1.98% for period ended Mar 2021, expansion of 34.0 bps.
Net Profit reported at Rs 1.04 cr for period ended TTM vis-vis sales of Rs 0.83 cr for the period ended Mar 2021, rising 20.2%.
Company reported a poor Net Profit CAGR of -6.2% 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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 64% on a 1 Year basis vis-vis a return of -7% over the last 3 Years. – The compounded sales growth on a TTM bassis is -3% vis-vis a compounded sales growth of -7% over the last 3 Years. – The compounded profit growth on a TTM basis is 214% vis-vis a compounded profit growth of -11% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 32.39% vis-vis 32.39% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free. – Stock is trading at 3.10 times its book value
– has a low return on equity of 5.98% for last 3 years.
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 34.33 and is trading at 40.0 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
