Mehabe score: 8 G Factor: 6 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 6 and Piotski score of 7.
Description
Kopran Ltd. is an integrated Pharmaceutical Company, committed to manufacture and supply International Quality Formulations and Active Pharmaceutical Ingredients worldwide.
Main Points
API Verticle #
Development, manufacturing, and sale of diverse Active Pharmaceutical Ingredients (APIs) and Advanced Intermediates. One of the leaders in Atenolol & one of the major players in Sterile Carbapenems. Their main products are Macrolides (almost 45%), Sterile Carbapenems (around 25%), & Anti-Hypertensive (around 20%).Site:KOPRANMain Symbol:KOPRAN
Stock trades at 231.0, above its 50dma 219.84. It also trades above its 200dma 159.89. The stock remains bullish on techicals
The 52 week high is at 262.00 and the 52week low is at 54.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
– has delivered good profit growth of 38.98% CAGR over last 5 years
Weakness
–
Competition
– The industry trades at a mean P/E of 33.0x. Piramal Enterp. trades at the industry’s max P/E of 48.58x. KOPRAN trades at a P/E of 16.2x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 9.0. KOPRAN has a G-Factor of 6 and Piotski scoreof 7.
– Average 1 month return for industry is 0.1%. The max 1- month return was given by Sun Pharma.Inds.: a return of 15.59 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 140.0 cr compared to Rs 87.0 cr for period ended Mar 2020, a rise of 60.9%
Operating Profits reported at Rs 19.0 cr for period ended Mar 2021 vis-vis 11.0 for period ended Mar 2020 .
Operating Margins expanded 92.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.48 compared to Rs 3.63 for previous quarter ended Dec 2020 and Rs 1.11 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 492.0 cr for period ended Mar 2021 vis-vis sales of Rs 360.0 cr for the period ended Mar 2020, a healthy growth of 26.8%. The 3 year sales cagr stood at 16.3%.
Operating margins expanded to 17.0% for period ended Mar 2021 vis-vis 13.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 62.0 cr for period ended Mar 2021 vis-vis sales of Rs 21.0 cr for the period ended Mar 2020, rising 66.1%.
Company recorded a healthy Net Profit CAGR of 45.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 60.0 cr for period ended Mar 2021 vis-vis Rs 31.0 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 28.0% compared to 19.0% over the last 3 Years. – The stock has given a return of 305% on a 1 Year basis vis-vis a return of 63% over the last 3 Years. – The compounded sales growth on a TTM bassis is 37% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is 187% vis-vis a compounded profit growth of 44% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.16% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 55.37% vis-vis 53.93% for Mar 2021
Conclusion
– has reduced debt.
– is expected to give good quarter
– has delivered good profit growth of 38.98% CAGR over last 5 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 219.84 and is trading at 231.0, thus bullish price action wise.
