Mehabe score: 3 G Factor: 2 Piotski Score: 4 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 4.
Description
Krebs Biochemicals & Industries is engaged in the business of manufacture of active pharmaceutical ingredients.Site:KREBSBIOMain Symbol:KREBSBIO
Stock trades at 131.0, above its 50dma 119.1. It also trades above its 200dma 110.74. The stock remains bullish on techicals
The 52 week high is at 148.80 and the 52week low is at 69.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
-Promoter holding has increased by 2.69% over last quarter.
Weakness
– has low interest coverage ratio.
Competition
– The industry trades at a mean P/E of 25.4x. Sequent Scien. trades at the industry’s max P/E of 72.24x. KREBSBIO trades at a P/E of x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. KREBSBIO has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is 5.5%. The max 1- month return was given by Gland Pharma: a return of 14.78 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 6.76 cr compared to Rs 11.57 cr for period ended Jun 2020, a fall of 41.6%
Company reported negative operating profit of Rs -6.53 cr for period ended Jun 2021. For same period last year, operating profit was -4.3
The EPS for Jun 2021 was Rs -4.37 compared to Rs -3.56 for previous quarter ended Mar 2021 and Rs -3.42 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 49.0 cr for period ended TTM vis-vis sales of Rs 54.0 cr for the period ended Mar 2021, a fall of 10.2%. The 3 year sales cagr stood at 0.7%.
Operating margins shrank to -40.0% for period ended TTM vis-vis -33.0% for period ended Mar 2021, contraction of 700.0 bps.
Net Profit reported at Rs -31.0 cr for period ended TTM vis-vis sales of Rs -28.0 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -15.0 cr for period ended Mar 2021 vis-vis Rs -36.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 58% on a 1 Year basis vis-vis a return of 7% over the last 3 Years. – The compounded sales growth on a TTM bassis is 21% vis-vis a compounded sales growth of 17% over the last 3 Years. – The compounded profit growth on a TTM basis is -11% vis-vis a compounded profit growth of -34% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.01% vis-vis 0.01% for Mar 2021 – Public shareholding has fallen for the period ended Jun 2021. The Jun 2021 public holding stood at 27.25% vis-vis 29.94% for Mar 2021
Conclusion
– is expected to give good quarter
-Promoter holding has increased by 2.69% over last quarter. – has low interest coverage ratio.
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 119.1 and is trading at 131.0 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
