Mehabe score: 6 G Factor: 4 Piotski Score: 8 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 4 and Piotski score of 8.
Description
Indoco Remedies (Indoco) is a Mumbai-based pharmaceutical company that focuses on formulations with a presence in contract manufacturing and research. The Company is engaged in the manufacturing and marketing of pharmaceutical Formulations (Finished Dosage Forms) and Active Pharmaceutical Ingredients (APIs).[1]Site:INDOCOMain Symbol:INDOCO
Stock trades at 478.0, above its 50dma 451.09. It also trades above its 200dma 377.65. The stock remains bullish on techicals
The 52 week high is at 530.25 and the 52week low is at 241.20
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 5.73 times its book value
-The company has delivered a poor sales growth of 4.32% over past five years.
– has a low return on equity of 5.57% for last 3 years.
Competition
– The industry trades at a mean P/E of 30.2x. Piramal Enterp. trades at the industry’s max P/E of 46.88x. INDOCO trades at a P/E of 38.1x
– Industry’s mean G-Factor is 2.1 while the mean Piotski score is 9.0. INDOCO has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is -3.7%. The max 1- month return was given by Indoco Remedies: a return of 6.97 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 387.0 cr compared to Rs 328.0 cr for period ended Sep 2020, a rise of 18.0%
Operating Profits reported at Rs 86.0 cr for period ended Sep 2021 vis-vis 61.0 for period ended Sep 2020 .
Operating Margins expanded 362.5 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 4.52 compared to Rs 4.3 for previous quarter ended Jun 2021 and Rs 2.78 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1411.0 cr for period ended TTM vis-vis sales of Rs 1242.0 cr for the period ended Mar 2021, a healthy growth of 12.0%. The 3 year sales cagr stood at 13.4%.
Operating margins expanded to 20.0% for period ended TTM vis-vis 18.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 132.0 cr for period ended TTM vis-vis sales of Rs 93.0 cr for the period ended Mar 2021, rising 0%.
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 improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 13.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 87% on a 1 Year basis vis-vis a return of 36% over the last 3 Years. – The compounded sales growth on a TTM bassis is 20% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is 194% vis-vis a compounded profit growth of 33% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 2.43% vis-vis 2.29% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 21.19% vis-vis 19.74% for Jun 2021
Conclusion
– – Stock is trading at 5.73 times its book value
-The company has delivered a poor sales growth of 4.32% over past five years.
– has a low return on equity of 5.57% for last 3 years.
