Mehabe score: 5 G Factor: 3 Piotski Score: 5 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 5.
Description
Balaxi Ventures is a pharma company. Majority of its sales comes from Africa, Caribbean Islands & Latin America. It is headquartered in Hyderabad. #
Main Points
Angola and Carribiean
The company has a “stock and sell” model in three different geographies: Angola in Africa and Dominican Republic and Guatemala in Latin America #. Company has 548 product registrations of which 289 are in Angola, 79 in Guatemala and 136 in Dominican Republic #. The subsidiaries in Guatemala and Dominican Republic were recently acquired .Site:BALAXIMain Symbol:www.nseindia.com
Stock trades at 617.0, above its 50dma 601.18. It also trades above its 200dma 564.6. The stock remains bullish on techicals
The 52 week high is at 1080.20 and the 52week low is at 138.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
-Debtor days have improved from 168.52 to 121.11 days.
Weakness
– Stock is trading at 9.50 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
Competition
– The industry trades at a mean P/E of 52.1x. 3M India trades at the industry’s max P/E of 186.7x. BALAXI trades at a P/E of 16.2x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 7.0. BALAXI has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 2.8%. The max 1- month return was given by Redington India: a return of 27.13 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 58.0 cr compared to Rs 52.0 cr for period ended Jun 2020, a rise of 11.5%
Operating Profits reported at Rs 11.0 cr for period ended Jun 2021 vis-vis 9.0 for period ended Jun 2020 .
Operating Margins expanded 165.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 10.71 compared to Rs 8.36 for previous quarter ended Mar 2021 and Rs 8.7 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 238.0 cr for period ended TTM vis-vis sales of Rs 231.0 cr for the period ended Mar 2021, a growth of 2.9%. The 3 year sales cagr stood at 157.1%.
Net Profit reported at Rs 40.0 cr for period ended TTM vis-vis sales of Rs 38.0 cr for the period ended Mar 2021, rising 5.0%.
Company recorded a healthy Net Profit CAGR of 171.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -14.0 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 82.0% compared to 0% over the last 3 Years. – The stock has given a return of 307% on a 1 Year basis vis-vis a return of 241% over the last 3 Years. – The compounded sales growth on a TTM bassis is 407% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is 525% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Conclusion
– is almost debt free.
– is expected to give good quarter
-Debtor days have improved from 168.52 to 121.11 days. – Stock is trading at 9.50 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
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 601.18 and is trading at 617.0 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
