Mehabe score: 6 G Factor: 2 Piotski Score: 6 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 2 and Piotski score of 6.
Description
Sanjivani Parenteral Limited is a research-based, international pharmaceutical company that provides a wide range of high quality products & services, at affordable prices. The core product range of the companys products includes oral solids, small volume parenterals and sterile powder formulations.Site:531569Main Symbol:SANJIVIN
Stock trades at 30.7, above its 50dma 17.18. It also trades above its 200dma 10.6. The stock remains bullish on techicals
The 52 week high is at 29.25 and the 52week low is at 8.43
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– The company has delivered a poor sales growth of -26.28% over past five years.
-Promoter holding is low: 24.63%
-Contingent liabilities of Rs.8.46 Cr.
-Debtor days have increased from 65.39 to 96.41 days.
Competition
– The industry trades at a mean P/E of 38.6x. Hester Bios trades at the industry’s max P/E of 55.32x. 531569 trades at a P/E of 18.4x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 9.0. 531569 has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 23.6%. The max 1- month return was given by Sanjiv.Parant.: a return of 115.29 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 8.08 cr compared to Rs 4.92 cr for period ended Jun 2020, a rise of 64.2%
Company reported operating profit of Rs 0.76 cr for period ended Jun 2021, operating profit margin at 9.4 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 0.74 compared to Rs 1.64 for previous quarter ended Mar 2021 and Rs -0.8 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 28.26 cr for period ended TTM vis-vis sales of Rs 25.1 cr for the period ended Mar 2021, a healthy growth of 11.2%. The 3 year sales cagr stood at 4.0%.
Operating margins expanded to 11.18% for period ended TTM vis-vis 8.53% for period ended Mar 2021, expansion of 265.0 bps.
Net Profit reported at Rs 2.52 cr for period ended TTM vis-vis sales of Rs 1.42 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 0.58 cr for period ended Mar 2021 vis-vis Rs -0.17 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 245% on a 1 Year basis vis-vis a return of 62% over the last 3 Years. – The compounded sales growth on a TTM bassis is 54% vis-vis a compounded sales growth of 12% over the last 3 Years. – The compounded profit growth on a TTM basis is 183% vis-vis a compounded profit growth of 27% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 63.6% vis-vis 63.6% for Mar 2021
Conclusion
– is expected to give good quarter – The company has delivered a poor sales growth of -26.28% over past five years.
-Promoter holding is low: 24.63%
-Contingent liabilities of Rs.8.46 Cr.
-Debtor days have increased from 65.39 to 96.41 days.
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 17.18 and is trading at 30.7 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
