Mehabe score: 0 G Factor: 4 Piotski Score: 3 The stock has a rating SELL. 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 3.
Description
Wockhardt is a Global Pharmaceutical and Biotech Company.Site:WOCKPHARMAMain Symbol:WOCKPHARMA
Stock trades at 540.0, below its 50dma 578.53. However it is trading above its 200dma 490.94. 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 578.53.
The 52 week high is at 804.90 and the 52week low is at 237.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 22.30% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of -9.47% over past five years.
– has a low return on equity of 4.86% for last 3 years.
-Earnings include an other income of Rs.1473.98 Cr.
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. WOCKPHARMA trades at a P/E of 8.72x
– Industry’s mean G-Factor is 2.2 while the mean Piotski score is 9.0. WOCKPHARMA has a G-Factor of 4 and Piotski scoreof 3.
– Average 1 month return for industry is -1.4%. 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 632.0 cr compared to Rs 687.0 cr for period ended Mar 2020, a fall of 8.0%
Company reported negative operating profit of Rs -66.0 cr for period ended Mar 2021. For same period last year, operating profit was 13.0
The EPS for Mar 2021 was Rs -8.38 compared to Rs 1.38 for previous quarter ended Dec 2020 and Rs 4.36 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2708.0 cr for period ended Mar 2021 vis-vis sales of Rs 2844.0 cr for the period ended Mar 2020, a fall of 5.0%. The 3 year sales cagr stood at -11.7%.
Operating margins shrank to -2.0% for period ended Mar 2021 vis-vis 4.0% for period ended Mar 2020, contraction of 600.0 bps.
Net Profit reported at Rs 686.0 cr for period ended Mar 2021 vis-vis sales of Rs -69.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
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 23.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 105% on a 1 Year basis vis-vis a return of -5% over the last 3 Years. – The compounded sales growth on a TTM bassis is -5% vis-vis a compounded sales growth of -12% over the last 3 Years. – The compounded profit growth on a TTM basis is 1091% vis-vis a compounded profit growth of 57% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 3.1% vis-vis 4.07% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 24.69% vis-vis 23.75% for Dec 2020
Conclusion
– has reduced debt.
– has delivered good profit growth of 22.30% CAGR over last 5 years – The company has delivered a poor sales growth of -9.47% over past five years.
– has a low return on equity of 4.86% for last 3 years.
-Earnings include an other income of Rs.1473.98 Cr.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 578.53 and is trading at 540.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
