Mehabe score: 2 G Factor: 2 Piotski Score: 9 The stock has a rating SELL. 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 9.
Description
Lasa Supergenerics Limited is engaged in manufacturing veterinary & human APIs, animal feed ingredients, and specialises in ‘catalyst chemistry’. [1][2] Site:LASA Main Symbol:LASA
Stock trades at 62.5, below its 50dma 68.83 and below its 200dma 69.96. The stock remains bearish on technicals
The 52 week high is at 92.90 and the 52week low is at 54.85
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Debtor days have improved from 44.64 to 26.67 days.
Weakness
– Promoter holding has decreased over last quarter: -19.45%
– has a low return on equity of 3.78% for last 3 years.
-Promoters have pledged 43.23% of their holding.
Competition
– The industry trades at a mean P/E of 25.8x. Biocon trades at the industry’s max P/E of 68.48x. LASA trades at a P/E of 27.1x
– Industry’s mean G-Factor is 1.6 while the mean Piotski score is 9.0. LASA has a G-Factor of 2 and Piotski scoreof 9.
– Average 1 month return for industry is -3.2%. The max 1- month return was given by Biocon: a return of 11.38 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 15.74 cr compared to Rs 53.99 cr for period ended Dec 2020, a fall of 70.8%
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Company reported negative operating profit of Rs -1.18 cr for period ended Dec 2021. For same period last year, operating profit was 12.75.
The EPS for quarter ended Dec 2021 is Rs -1.16 compared to Rs -3.38 for previous quarter ended Sep 2021 and Rs 1.61 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 125.0 cr for period ended TTM vis-vis sales of Rs 202.0 cr for the period ended Mar 2021, a fall of 61.6%. The 3 year sales cagr stood at -9.7%.
Operating margins shrank to 11.0% for period ended TTM vis-vis 23.0% for period ended Mar 2021, contraction of 1200.0 bps.
Net Profit reported at Rs -14.0 cr for period ended TTM vis-vis sales of Rs 23.0 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 41.0 cr for period ended Mar 2021 vis-vis Rs 14.0 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 15.0% compared to 4.0% over the last 3 Years. – The stock has given a return of -22% on a 1 Year basis vis-vis a return of 45% over the last 3 Years. – The compounded sales growth on a TTM bassis is -17% vis-vis a compounded sales growth of -6% over the last 3 Years. – The compounded profit growth on a TTM basis is -47% vis-vis a compounded profit growth of 23% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.06% vis-vis 0.01% for Sep 2021 – Public shareholding has risen for the period ended Dec 2021. The Dec 2021 public holding stood at 54.93% vis-vis 35.52% for Sep 2021
Conclusion
– has reduced debt.
– is almost debt free.
-Debtor days have improved from 44.64 to 26.67 days. – Promoter holding has decreased over last quarter: -19.45%
– has a low return on equity of 3.78% for last 3 years.
-Promoters have pledged 43.23% of their holding.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 68.83 and is trading at 62.5. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
