Mehabe score: 6 G Factor: 5 Piotski Score: 5 The stock has a rating 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 5 and Piotski score of 5.
Description
Omkar Pharmachem company is engaged in the business of manufactures chemicals for use in pharmaceuticals.Not done any commercial activity during the year. (Source : 201903 Annual Report Page No:50)Site:532167Main Symbol:OMKARPH
Stock trades at 22.7, above its 50dma 14.99. It also trades above its 200dma 7.95. The stock remains bullish on techicals
The 52 week high is at 20.85 and the 52week low is at 17.15
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Debtor days have improved from 93.28 to 40.56 days.
Weakness
– Stock is trading at 2.64 times its book value
– has low interest coverage ratio.
-Promoter holding is low: 0.03%
– has a low return on equity of -1.77% for last 3 years.
Competition
– The industry trades at a mean P/E of 26.8x. Pidilite Inds. trades at the industry’s max P/E of 91.63x. 532167 trades at a P/E of 76.3x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 8.0. 532167 has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is -4.3%. The max 1- month return was given by Omkar Pharmachem: a return of 20.11 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 0.14 cr compared to Rs 0.05 cr for period ended Sep 2020, a rise of 180.0%
Company reported operating profit of Rs 0.07 cr for period ended Sep 2021, operating profit margin at 50.0 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs 0.05 compared to Rs 0.05 for previous quarter ended Jun 2021 and Rs -0.01 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.47 cr for period ended TTM vis-vis sales of Rs 0.27 cr for the period ended Mar 2021, a healthy growth of 42.6%.
Operating margins expanded to 40.43% for period ended TTM vis-vis 11.11% for period ended Mar 2021, expansion of 2932.0 bps.
Net Profit reported at Rs 0.36 cr for period ended TTM vis-vis sales of Rs 0.22 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 0.02 cr for period ended Mar 2021 vis-vis Rs -0.21 cr for period ended Mar 2020
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 3.0% compared to -2.0% over the last 3 Years. – The stock has given a return of 19% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 440% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is 250% vis-vis a compounded profit growth of 42% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 99.97% vis-vis 99.97% for Jun 2021
Conclusion
– is almost debt free.
-Debtor days have improved from 93.28 to 40.56 days. – Stock is trading at 2.64 times its book value
– has low interest coverage ratio.
-Promoter holding is low: 0.03%
– has a low return on equity of -1.77% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 14.99 and is trading at 22.7, thus bullish price action wise.
