Mehabe score: 4 G Factor: 4 Piotski Score: 6 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 6.
Description
Indraprastha Medical Corporation is engaged in the healthcare business and is not carrying on any export activities.Site:INDRAMEDCOMain Symbol:INDRAMEDCO
Stock trades at 79.6, below its 50dma 82.93. However it is trading above its 200dma 69.17. 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 82.93.
The 52 week high is at 102.55 and the 52week low is at 45.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Stock is trading at 2.68 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -4.08% over past five years.
– has a low return on equity of 9.94% for last 3 years.
Competition
– The industry trades at a mean P/E of 35.9x. Max Healthcare trades at the industry’s max P/E of 983.72x. INDRAMEDCO trades at a P/E of 313.0x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 9.0. INDRAMEDCO has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 3.6%. The max 1- month return was given by Dr Lal Pathlabs: a return of 11.56 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 203.0 cr compared to Rs 94.0 cr for period ended Jun 2020, a rise of 116.0%
Company reported operating profit of Rs 30.0 cr for period ended Jun 2021, operating profit margin at 14.8 %.
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 1.68 compared to Rs 1.65 for previous quarter ended Mar 2021 and Rs -2.75 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 722.0 cr for period ended TTM vis-vis sales of Rs 613.0 cr for the period ended Mar 2021, a healthy growth of 15.1%. The 3 year sales cagr stood at -2.9%.
Operating margins expanded to 13.0% for period ended TTM vis-vis 7.0% for period ended Mar 2021, expansion of 600.0 bps.
Net Profit reported at Rs 43.0 cr for period ended TTM vis-vis sales of Rs 2.0 cr for the period ended Mar 2021, rising 95.3%.
Company recorded a healthy Net Profit CAGR of 15.4% 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 worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 44% on a 1 Year basis vis-vis a return of 22% over the last 3 Years. – The compounded sales growth on a TTM bassis is -26% vis-vis a compounded sales growth of -7% over the last 3 Years. – The compounded profit growth on a TTM basis is -95% vis-vis a compounded profit growth of -53% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 48.98% vis-vis 48.98% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free. – Stock is trading at 2.68 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -4.08% over past five years.
– has a low return on equity of 9.94% for last 3 years.
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 below its 50 DMA 82.93 and is trading at 79.6. Shows a near term lack of buying interest.
