Mehabe score: 8 G Factor: 4 Piotski Score: 5 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 5.
Description
Gufic Biosciences Limited is engaged in the manufacture of pharmaceuticals, medicinal chemicals and botanical products.Site:GUFICBIO
Market Cap:
Rs 1,676 cr
Price:
173.0
Trading pe:
55.0x
Book-value:
17.9/share
Div yield:
0.03 %
Earning yield:
3.16%
Face-value:
1.00/share
52week high:
215.95
52week low:
71.85
Technical Analysis
Stock trades at 173.0, above its 50dma 166.66. It also trades above its 200dma 128.94. The stock remains bullish on techicals
The 52 week high is at 215.95 and the 52week low is at 71.85
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 40.59% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 30.79%
-‘s median sales growth is 20.70% of last 10 years
Weakness
– Stock is trading at 9.66 times its book value
-Promoter holding has decreased over last quarter: -0.62%
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 29.0x. Gufic BioScience trades at the industry’s max P/E of 54.99x. GUFICBIO trades at a P/E of 55.0x
– Industry’s mean G-Factor is 2.4 while the mean Piotski score is 8.0. GUFICBIO has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 3.8%. The max 1- month return was given by Piramal Enterp.: a return of 43.04 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 132.0 cr compared to Rs 87.0 cr for period ended Mar 2020, a rise of 51.7%
Operating Profits reported at Rs 24.0 cr for period ended Mar 2021 vis-vis 12.0 for period ended Mar 2020 .
Operating Margins expanded 438.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.65 compared to Rs 1.99 for previous quarter ended Dec 2020 and Rs 0.64 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 473.0 cr for period ended TTM vis-vis sales of Rs 358.0 cr for the period ended Mar 2020, a healthy growth of 24.3%. The 3 year sales cagr stood at 15.6%.
Operating margins expanded to 16.0% for period ended TTM vis-vis 12.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 41.0 cr for period ended TTM vis-vis sales of Rs 23.0 cr for the period ended Mar 2020, rising 43.9%.
Company recorded a healthy Net Profit CAGR of 36.8% 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 46.0 cr for period ended Mar 2020 vis-vis Rs 5.0 cr for period ended Mar 2019
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 27.0% compared to 31.0% over the last 3 Years. – The stock has given a return of 134% on a 1 Year basis vis-vis a return of 12% over the last 3 Years. – The compounded sales growth on a TTM bassis is 9% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 26% vis-vis a compounded profit growth of 36% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.23% vis-vis 0.33% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.77% vis-vis 25.21% for Dec 2020
Conclusion
– has reduced debt.
– has delivered good profit growth of 40.59% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 30.79%
-‘s median sales growth is 20.70% of last 10 years – Stock is trading at 9.66 times its book value
-Promoter holding has decreased over last quarter: -0.62%
-‘s cost of borrowing seems high
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 166.66 and is trading at 173.0, thus bullish price action wise.
