Mehabe score: 6 G Factor: 5 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 5 and Piotski score of 6.
Description
Established in the year 1993, Bajaj Healthcare Ltd is an estalished player in the Indian Pharmacuetical Industry and fastest growing mid-cap pharmaceutical companies in India.#
Main Points
Products
Company is into manufacturing and supply of API’s, Intermediates, Formulations and Impurities.#
With six API manufacturing facilities spread across different states, API’s contributes around 90% to the overall revenue mix. It has strong presence in more than 50 countries through exports of API’s with an aggregate manufacturing capacity of 726 MT per monthSite:539872Main Symbol:BAJAJHCARE
Stock trades at 941.0, above its 50dma 810.01. It also trades above its 200dma 595.78. The stock remains bullish on techicals
The 52 week high is at 1023.80 and the 52week low is at 331.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 58.72% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 26.14%
-Debtor days have improved from 73.70 to 54.94 days.
Weakness
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 30.6x. Piramal Enterp. trades at the industry’s max P/E of 46.54x. 539872 trades at a P/E of 15.6x
– Industry’s mean G-Factor is 2.5 while the mean Piotski score is 9.0. 539872 has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is -0.1%. The max 1- month return was given by Bajaj Healthcare: a return of 14.16 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 186.0 cr compared to Rs 140.0 cr for period ended Jun 2020, a rise of 32.9%
Operating Profits reported at Rs 33.0 cr for period ended Jun 2021 vis-vis 25.0 for period ended Jun 2020 .
Operating Margins contracted -11.5 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 13.93 compared to Rs 15.42 for previous quarter ended Mar 2021 and Rs 11.08 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 703.0 cr for period ended TTM vis-vis sales of Rs 657.0 cr for the period ended Mar 2021, a growth of 6.5%. The 3 year sales cagr stood at 23.9%.
Net Profit reported at Rs 90.0 cr for period ended TTM vis-vis sales of Rs 83.0 cr for the period ended Mar 2021, rising 7.8%.
Company recorded a healthy Net Profit CAGR of 77.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 44.0 cr for period ended Mar 2021 vis-vis Rs 21.0 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 41.0% compared to 26.0% over the last 3 Years. – The stock has given a return of 167% on a 1 Year basis vis-vis a return of 65% over the last 3 Years. – The compounded sales growth on a TTM bassis is 60% vis-vis a compounded sales growth of 26% over the last 3 Years. – The compounded profit growth on a TTM basis is 270% vis-vis a compounded profit growth of 76% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 32.74% vis-vis 32.74% for Mar 2021
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 58.72% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 26.14%
-Debtor days have improved from 73.70 to 54.94 days. – might be capitalizing the interest cost
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 810.01 and is trading at 941.0, thus bullish price action wise.
