Mehabe score: 3 G Factor: 2 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 2 and Piotski score of 6.
Description
Albert David is engaged in manufacturing and trading of Pharmaceutical Formulations, Infusion Solutions, Herbal Dosage Forms and Bulk Drugs by way of domestic sale or export.(Source : 201903 Annual Report Page No: 99)Site:ALBERTDAVD
Market Cap:
Rs 293 cr
Price:
513.0
Trading pe:
25.3x
Book-value:
404/share
Div yield:
1.36 %
Earning yield:
5.84%
Face-value:
10.0/share
52week high:
549.90
52week low:
371.45
Technical Analysis
Stock trades at 513.0, above its 50dma 457.14. It also trades above its 200dma 435.57. The stock remains bullish on techicals
The 52 week high is at 549.90 and the 52week low is at 371.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 21.88%
Weakness
– The company has delivered a poor sales growth of 0.15% over past five years.
– has a low return on equity of 9.37% for last 3 years.
-Earnings include an other income of Rs.13.54 Cr.
Competition
– The industry trades at a mean P/E of 26.9x. Hester Bios trades at the industry’s max P/E of 59.61x. ALBERTDAVD trades at a P/E of 25.3x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 9.0. ALBERTDAVD has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 6.5%. The max 1- month return was given by Syncom Formul.: a return of 34.72 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 56.74 cr compared to Rs 60.0 cr for period ended Mar 2020, a fall of 5.4%
Company reported operating profit of Rs 6.59 cr for period ended Mar 2021, operating profit margin at 11.6 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 12.77 compared to Rs 10.72 for previous quarter ended Dec 2020 and Rs -5.78 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 247.0 cr for period ended Mar 2021 vis-vis sales of Rs 320.0 cr for the period ended Mar 2020, a fall of 29.6%. The 3 year sales cagr stood at -4.7%.
Operating margins shrank to 8.0% for period ended Mar 2021 vis-vis 11.0% for period ended Mar 2020, contraction of 300.0 bps.
Net Profit reported at Rs 22.0 cr for period ended Mar 2021 vis-vis sales of Rs 19.0 cr for the period ended Mar 2020, rising 13.6%.
Company recorded a healthy Net Profit CAGR of 30.1% over the last 3 years
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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 4% on a 1 Year basis vis-vis a return of 4% over the last 3 Years. – The compounded sales growth on a TTM bassis is -24% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is -61% vis-vis a compounded profit growth of 10% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 34.94% vis-vis 35.03% for Dec 2020
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 21.88% – The company has delivered a poor sales growth of 0.15% over past five years.
– has a low return on equity of 9.37% for last 3 years.
-Earnings include an other income of Rs.13.54 Cr.
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 457.14 and is trading at 513.0 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
