Mehabe score: 6 G Factor: 3 Piotski Score: 4 The stock has a rating OBSERVE & 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 3 and Piotski score of 4.
Description
Shree Ganesh Remedies is engaged in the business of Pharma Intermediate.Site:540737Main Symbol:SGRL
Stock trades at 435.0, above its 50dma 354.95. It also trades above its 200dma 249.19. The stock remains bullish on techicals
The 52 week high is at 461.40 and the 52week low is at 76.43
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 55.28% CAGR over last 5 years
-Promoter holding has increased by 4.82% over last quarter.
Weakness
– Stock is trading at 8.70 times its book value
Competition
– The industry trades at a mean P/E of 30.3x. Sun Pharma.Inds. trades at the industry’s max P/E of 55.24x. 540737 trades at a P/E of 44.6x
– Industry’s mean G-Factor is 2.1 while the mean Piotski score is 9.0. 540737 has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 3.2%. The max 1- month return was given by Shree Ganesh Rem: a return of 30.41 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 12.63 cr compared to Rs 8.92 cr for period ended Jun 2020, a rise of 41.6%
Operating Profits reported at Rs 3.05 cr for period ended Jun 2021 vis-vis 1.67 for period ended Jun 2020 .
Operating Margins expanded 542.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 2.34 compared to Rs 3.03 for previous quarter ended Mar 2021 and Rs 1.65 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 53.0 cr for period ended TTM vis-vis sales of Rs 49.0 cr for the period ended Mar 2021, a growth of 7.5%. The 3 year sales cagr stood at 14.8%.
Operating margins expanded to 29.0% for period ended TTM vis-vis 28.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 11.0 cr for period ended TTM vis-vis sales of Rs 10.0 cr for the period ended Mar 2021, rising 9.1%.
Company recorded a healthy Net Profit CAGR of 22.4% over the last 3 years
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 company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 21.0% compared to 22.0% over the last 3 Years. – The stock has given a return of 448% on a 1 Year basis vis-vis a return of 104% over the last 3 Years. – The compounded sales growth on a TTM bassis is -16% vis-vis a compounded sales growth of 22% over the last 3 Years. – The compounded profit growth on a TTM basis is 1% vis-vis a compounded profit growth of 28% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 31.61% vis-vis 36.43% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 55.28% CAGR over last 5 years
-Promoter holding has increased by 4.82% over last quarter. – Stock is trading at 8.70 times its book value
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 354.95 and is trading at 435.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
