Mehabe score: 6 G Factor: 4 Piotski Score: 5 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 5.
Description
Bafna Pharmaceuticals is engaged in the Business of manufacture of pharmaceutical products.Site:BAFNAPHMain Symbol:BAFNAPHARM
Stock trades at 156.0, above its 50dma 143.73. It also trades above its 200dma 123.57. The stock remains bullish on techicals
The 52 week high is at 233.55 and the 52week low is at 10.24
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 19.91% CAGR over last 5 years
-Debtor days have improved from 102.85 to 48.99 days.
Weakness
– Stock is trading at 6.50 times its book value
– has a low return on equity of -24.25% for last 3 years.
Competition
– The industry trades at a mean P/E of 36.1x. Bafna Pharma. trades at the industry’s max P/E of 63.26x. BAFNAPH trades at a P/E of 63.3x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 9.0. BAFNAPH has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 8.2%. The max 1- month return was given by Lincoln Pharma.: a return of 19.45 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 21.84 cr compared to Rs 13.13 cr for period ended Mar 2020, a rise of 66.3%
Operating Profits reported at Rs 4.2 cr for period ended Mar 2021 vis-vis 4.26 for period ended Mar 2020 .
Operating Margins contracted -1321.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.12 compared to Rs 0.38 for previous quarter ended Dec 2020 and Rs -0.68 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 71.22 cr for period ended Mar 2021 vis-vis sales of Rs 42.47 cr for the period ended Mar 2020, a healthy growth of 40.4%. The 3 year sales cagr stood at 16.1%.
Operating margins expanded to 14.45% for period ended Mar 2021 vis-vis 2.9% for period ended Mar 2020, expansion of 1155.0 bps.
Net Profit reported at Rs 5.83 cr for period ended Mar 2021 vis-vis sales of Rs -25.2 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -13.61 cr for period ended Mar 2021 vis-vis Rs -34.27 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 22.0% compared to -24.0% over the last 3 Years. – The stock has given a return of 596% on a 1 Year basis vis-vis a return of 93% over the last 3 Years. – The compounded sales growth on a TTM bassis is 68% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is 412% vis-vis a compounded profit growth of 29% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 9.61% vis-vis 8.26% for Mar 2021
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 19.91% CAGR over last 5 years
-Debtor days have improved from 102.85 to 48.99 days. – Stock is trading at 6.50 times its book value
– has a low return on equity of -24.25% 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 above its 50 DMA 143.73 and is trading at 156.0, thus bullish price action wise.
