Mehabe score: 7 G Factor: 3 Piotski Score: 6 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 6.
Description
Lyka Labs is engaged in the Business of pharmaceutical and related activities, including research.Site:LYKALABSMain Symbol:LYKALABS
Stock trades at 58.2, above its 50dma 54.58. It also trades above its 200dma 37.54. The stock remains bullish on techicals
The 52 week high is at 76.95 and the 52week low is at 16.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
-Debtor days have improved from 53.30 to 36.69 days.
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -7.94% over past five years.
-Promoter holding is low: 19.88%
-Promoters have pledged 26.76% of their holding.
Competition
– The industry trades at a mean P/E of 32.3x. Sun Pharma.Inds. trades at the industry’s max P/E of 55.19x. LYKALABS trades at a P/E of x
– Industry’s mean G-Factor is 2.1 while the mean Piotski score is 9.0. LYKALABS has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 0.2%. The max 1- month return was given by Piramal Enterp.: a return of 5.29 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 24.26 cr compared to Rs 15.07 cr for period ended Mar 2020, a rise of 61.0%
Operating Profits reported at Rs 6.24 cr for period ended Mar 2021 vis-vis 0.3 for period ended Mar 2020 .
Operating Margins expanded 2373.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.4 compared to Rs -0.79 for previous quarter ended Dec 2020 and Rs -4.29 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 86.0 cr for period ended Mar 2021 vis-vis sales of Rs 61.0 cr for the period ended Mar 2020, a healthy growth of 29.1%. The 3 year sales cagr stood at 12.7%.
Operating margins expanded to 23.0% for period ended Mar 2021 vis-vis -9.0% for period ended Mar 2020, expansion of 3200.0 bps.
Net Profit reported at Rs -12.0 cr for period ended Mar 2021 vis-vis sales of Rs -61.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 9.0 cr for period ended Mar 2021 vis-vis Rs 5.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 192% on a 1 Year basis vis-vis a return of 15% over the last 3 Years. – The compounded sales growth on a TTM bassis is 40% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 64% vis-vis a compounded profit growth of 13% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 3.5% vis-vis 3.5% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 76.15% vis-vis 76.15% for Dec 2020
Conclusion
– is expected to give good quarter
-Debtor days have improved from 53.30 to 36.69 days. – has low interest coverage ratio.
-The company has delivered a poor sales growth of -7.94% over past five years.
-Promoter holding is low: 19.88%
-Promoters have pledged 26.76% of their holding.
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 54.58 and is trading at 58.2 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
