Mehabe score: 6 G Factor: 4 Piotski Score: 7 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 7.
Description
Venus Remedies Ltd is an Indian Pharmaceutical company with a presence in domestic and international markets. It is primarily engaged in the business of pharmaceutical products manufacturing.[1]Site:VENUSREMMain Symbol:VENUSREM
Stock trades at 500.0, above its 50dma 459.84. It also trades above its 200dma 343.92. The stock remains bullish on techicals
The 52 week high is at 639.00 and the 52week low is at 116.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 86.47% CAGR over last 5 years
-Debtor days have improved from 32.67 to 21.49 days.
Weakness
– The company has delivered a poor sales growth of 5.97% over past five years.
– has a low return on equity of 1.51% for last 3 years.
-Earnings include an other income of Rs.52.16 Cr.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 25.7x. Hester Bios trades at the industry’s max P/E of 43.97x. VENUSREM trades at a P/E of 16.6x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. VENUSREM has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is -0.4%. The max 1- month return was given by Venus Remedies: a return of 10.63 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 203.0 cr compared to Rs 126.0 cr for period ended Sep 2020, a rise of 61.1%
Operating Profits reported at Rs 27.0 cr for period ended Sep 2021 vis-vis 11.0 for period ended Sep 2020 .
Operating Margins expanded 457.0 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 17.32 compared to Rs 8.75 for previous quarter ended Jun 2021 and Rs 10.56 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 566.0 cr for period ended TTM vis-vis sales of Rs 544.0 cr for the period ended Mar 2021, a growth of 3.9%. The 3 year sales cagr stood at 20.7%.
Operating margins expanded to 12.0% for period ended TTM vis-vis 10.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 82.0 cr for period ended TTM vis-vis sales of Rs 62.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 133.0 cr for period ended Mar 2021 vis-vis Rs 78.0 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 11.0% compared to 2.0% over the last 3 Years. – The stock has given a return of 272% on a 1 Year basis vis-vis a return of 138% over the last 3 Years. – The compounded sales growth on a TTM bassis is 7% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is 206% vis-vis a compounded profit growth of 48% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.1% vis-vis 0.02% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 59.09% vis-vis 59.17% for Jun 2021
Conclusion
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 86.47% CAGR over last 5 years
-Debtor days have improved from 32.67 to 21.49 days. – The company has delivered a poor sales growth of 5.97% over past five years.
– has a low return on equity of 1.51% for last 3 years.
-Earnings include an other income of Rs.52.16 Cr.
-‘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 459.84 and is trading at 500.0, thus bullish price action wise.
