Mehabe score: 4 G Factor: 0 Piotski Score: 7 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 0 and Piotski score of 7.
Description
Generic Pharmasec Limited Formerly Known as Adi Rasayan Limited) is engeged in the Business of pharmaceutical activities.Site:531592
Market Cap:
Rs 244 cr
Price:
8.8
Trading pe:
193.0x
Book-value:
0.63/share
Div yield:
0.00 %
Earning yield:
0.57%
Face-value:
1.00/share
52week high:
14.02
52week low:
7.11
Technical Analysis
Stock trades at 8.8, below its 50dma 9.0 and below its 200dma 9.86. The stock remains bearish on technicals
The 52 week high is at 14.02 and the 52week low is at 7.11
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
Weakness
– Stock is trading at 13.89 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 5.39% for last 3 years.
Competition
– The industry trades at a mean P/E of 25.3x. Generic Pharma. trades at the industry’s max P/E of 193.37x. 531592 trades at a P/E of 193.0x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. 531592 has a G-Factor of 0 and Piotski scoreof 7.
– Average 1 month return for industry is 6.9%. The max 1- month return was given by Bhageria Indust.: a return of 30.05 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 6.76 cr compared to Rs 5.7 cr for period ended Mar 2020, a rise of 18.6%
Operating Profits reported at Rs 2.67 cr for period ended Mar 2021 vis-vis 0.39 for period ended Mar 2020 .
Operating Margins expanded 3265.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.09 compared to Rs 0.0 for previous quarter ended Dec 2020 and Rs 0.02 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 21.31 cr for period ended Mar 2021 vis-vis sales of Rs 16.5 cr for the period ended Mar 2020, a healthy growth of 22.6%. The 3 year sales cagr stood at 543.4%.
Operating margins expanded to 5.58% for period ended Mar 2021 vis-vis 3.94% for period ended Mar 2020, expansion of 164.0 bps.
Net Profit reported at Rs 1.26 cr for period ended Mar 2021 vis-vis sales of Rs 1.01 cr for the period ended Mar 2020, rising 19.8%.
Company recorded a healthy Net Profit CAGR of 193.2% 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 5.0% over the last 3 Years. – The stock has given a return of -20% on a 1 Year basis vis-vis a return of 24% over the last 3 Years. – The compounded sales growth on a TTM bassis is 29% vis-vis a compounded sales growth of 543% over the last 3 Years. – The compounded profit growth on a TTM basis is 25% vis-vis a compounded profit growth of 193% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 40.04% vis-vis 40.04% for Dec 2020
Conclusion
– is almost debt free.
– is expected to give good quarter – Stock is trading at 13.89 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has a low return on equity of 5.39% for last 3 years.
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 9.0 and is trading at 8.8. 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
