Mehabe score: 5 G Factor: 4 Piotski Score: 6 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 4 and Piotski score of 6.
Description
Denis Chem Lab is engaged in the business of manufacturing of Pharmaceuticals Transfustion Solution in Bottles(Source : 201903 Annual Report Page No:58)Site:537536Main Symbol:DENISCHEM
Stock trades at 67.8, above its 50dma 62.03. It also trades above its 200dma 53.05. The stock remains bullish on techicals
The 52 week high is at 74.00 and the 52week low is at 34.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– The company has delivered a poor sales growth of 2.14% over past five years.
-Promoter holding is low: 38.98%
– has a low return on equity of 7.01% for last 3 years.
Competition
– The industry trades at a mean P/E of 23.4x. Divi’s Lab. trades at the industry’s max P/E of 60.06x. 537536 trades at a P/E of 27.5x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 8.0. 537536 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is -5.8%. The max 1- month return was given by Hikal: a return of 2.85 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 31.76 cr compared to Rs 27.72 cr for period ended Sep 2020, a rise of 14.6%
Operating Profits reported at Rs 5.01 cr for period ended Sep 2021 vis-vis 2.72 for period ended Sep 2020 .
Operating Margins expanded 596.2 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 1.81 compared to Rs 1.16 for previous quarter ended Jun 2021 and Rs 0.09 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 123.0 cr for period ended TTM vis-vis sales of Rs 109.0 cr for the period ended Mar 2021, a healthy growth of 11.4%.
Operating margins expanded to 11.0% for period ended TTM vis-vis 9.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 6.0 cr for period ended TTM vis-vis sales of Rs 2.0 cr for the period ended Mar 2021, rising 66.7%.
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 stock has given a return of 61% on a 1 Year basis vis-vis a return of -2% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 25% vis-vis a compounded profit growth of 2% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Sep 2021 public holding stood at 61.02% vis-vis 61.02% for Jun 2021
Conclusion
– has reduced debt. – The company has delivered a poor sales growth of 2.14% over past five years.
-Promoter holding is low: 38.98%
– has a low return on equity of 7.01% 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 62.03 and is trading at 67.8, thus bullish price action wise.
