Mehabe score: 4 G Factor: 4 Piotski Score: 8 The stock has a rating . 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 8.
Description
Indoco Remedies (Indoco) is a Mumbai-based pharmaceutical company that focuses on formulations with a presence in contract manufacturing and research. The Company is engaged in the manufacturing and marketing of pharmaceutical Formulations (Finished Dosage Forms) and Active Pharmaceutical Ingredients (APIs).[1] Site:INDOCO Main Symbol:INDOCO
Stock trades at 407.0, below its 50dma 424.41. However it is trading above its 200dma 406.42. 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 424.41.
The 52 week high is at 530.25 and the 52week low is at 273.90
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 4.51 times its book value
-The company has delivered a poor sales growth of 4.30% over past five years.
– has a low return on equity of 5.54% for last 3 years.
Competition
– The industry trades at a mean P/E of 25.6x. Biocon trades at the industry’s max P/E of 63.83x. INDOCO trades at a P/E of 28.6x
– Industry’s mean G-Factor is 1.8 while the mean Piotski score is 9.0. INDOCO has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is -7.3%. The max 1- month return was given by Biocon: a return of 0.67 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 358.0 cr compared to Rs 332.0 cr for period ended Dec 2020, a rise of 7.8% .
vis-vis 60.0 for period ended Dec 2020 .
Operating Margins expanded 231.9 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 73.0 cr for period ended Dec 2021 and operating profit margin at 20.4 % for same period.
The EPS for quarter ended Dec 2021 is Rs 3.58 compared to Rs 4.51 for previous quarter ended Sep 2021 and Rs 2.73 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1436.0 cr for period ended TTM vis-vis sales of Rs 1240.0 cr for the period ended Mar 2021, a healthy growth of 13.6%. The 3 year sales cagr stood at 14.0%.
Operating margins expanded to 21.0% for period ended TTM vis-vis 18.0% for period ended Mar 2021, expansion of 300.0 bps.
Net Profit reported at Rs 139.0 cr for period ended TTM vis-vis sales of Rs 92.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 13.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 26% on a 1 Year basis vis-vis a return of 30% over the last 3 Years. – The compounded sales growth on a TTM bassis is 21% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is 130% vis-vis a compounded profit growth of 32% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 1.62% vis-vis 2.43% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 21.91% vis-vis 21.19% for Sep 2021
Conclusion
– – Stock is trading at 4.51 times its book value
-The company has delivered a poor sales growth of 4.30% over past five years.
– has a low return on equity of 5.54% for last 3 years.
