Mehabe score: 5 G Factor: 5 Piotski Score: 9 The stock has a rating . 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 9.
Description
Parmax Pharma is engaged in the business of manufacturing of bulk drugs like Ampicilin, Amoxycillin, Cephalexin, Nalidixic Acid etc.Site:540359Main Symbol:PARMAX
Stock trades at 47.4, below its 50dma 54.18. However it is trading above its 200dma 45.7. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 54.18.
The 52 week high is at 81.90 and the 52week low is at 24.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
-Debtor days have improved from 38.52 to 22.99 days.
Weakness
– Stock is trading at 3.05 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 30.80%
– has a low return on equity of 8.47% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 20.4x. Sequent Scien. trades at the industry’s max P/E of 74.37x. 540359 trades at a P/E of 23.7x
– Industry’s mean G-Factor is 3.2 while the mean Piotski score is 9.0. 540359 has a G-Factor of 5 and Piotski scoreof 9.
– Average 1 month return for industry is -3.1%. The max 1- month return was given by Hikal: a return of 34.17 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1.73 cr compared to Rs 2.27 cr for period ended Jun 2020, a fall of 23.8%
Company reported operating profit of Rs 0.11 cr for period ended Jun 2021, operating profit margin at 6.4 %.
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 -1.18 compared to Rs -0.8 for previous quarter ended Mar 2021 and Rs -2.67 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 25.66 cr for period ended TTM vis-vis sales of Rs 26.2 cr for the period ended Mar 2021, a fall of 2.1%. The 3 year sales cagr stood at 28.9%.
Operating margins expanded to 15.63% for period ended TTM vis-vis 13.02% for period ended Mar 2021, expansion of 261.0 bps.
Net Profit reported at Rs 1.32 cr for period ended TTM vis-vis sales of Rs 0.75 cr for the period ended Mar 2021, rising 43.2%.
Company recorded a healthy Net Profit CAGR of 154.6% 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 3.53 cr for period ended Mar 2021 vis-vis Rs 2.82 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 14.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 46% on a 1 Year basis vis-vis a return of 33% over the last 3 Years. – The compounded sales growth on a TTM bassis is 25% vis-vis a compounded sales growth of 30% over the last 3 Years. – The compounded profit growth on a TTM basis is 74% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 69.2% vis-vis 69.2% for Mar 2021
Conclusion
– is expected to give good quarter
-Debtor days have improved from 38.52 to 22.99 days. – Stock is trading at 3.05 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Promoter holding is low: 30.80%
– has a low return on equity of 8.47% for last 3 years.
– might be capitalizing the interest cost
