Mehabe score: 3 G Factor: 2 Piotski Score: 5 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 5. Site:SUVENPHAR
Market Cap:
Rs 13,130 cr
Price:
516.0
Trading pe:
37.2x
Book-value:
39.7/share
Div yield:
0.19 %
Earning yield:
3.53%
Face-value:
1.00/share
52week high:
565.00
52week low:
152.50
Technical Analysis
Stock trades at 516.0, above its 50dma 511.43. It also trades above its 200dma 433.0. The stock remains bullish on techicals
The 52 week high is at 565.00 and the 52week low is at 152.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– Debtor days have improved from 96.90 to 51.31 days.
Weakness
– Stock is trading at 13.00 times its book value
Competition
– The industry trades at a mean P/E of 27.2x. Biocon trades at the industry’s max P/E of 63.83x. SUVENPHAR trades at a P/E of 37.2x
– Industry’s mean G-Factor is 2.2 while the mean Piotski score is 8.0. SUVENPHAR has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is 1.6%. The max 1- month return was given by Torrent Pharma.: a return of 7.98 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 259.0 cr compared to Rs 185.0 cr for period ended Mar 2020, a rise of 40.0%
Operating Profits reported at Rs 94.0 cr for period ended Mar 2021 vis-vis 77.0 for period ended Mar 2020 .
Operating Margins contracted -532.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.27 compared to Rs 4.46 for previous quarter ended Dec 2020 and Rs 2.91 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1010.0 cr for period ended Mar 2021 vis-vis sales of Rs 834.0 cr for the period ended Mar 2020, a healthy growth of 17.4%.
Operating margins shrank to 44.0% for period ended Mar 2021 vis-vis 46.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 362.0 cr for period ended Mar 2021 vis-vis sales of Rs 317.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
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 44.0% compared to 0% over the last 3 Years. – The stock has given a return of 223% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 4% vis-vis a compounded sales growth of % over the last 3 Years. – The compounded profit growth on a TTM basis is 11% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 6.93% vis-vis 6.04% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 27.55% vis-vis 29.3% for Dec 2020
Conclusion
– Debtor days have improved from 96.90 to 51.31 days. – Stock is trading at 13.00 times its book value
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 511.43 and is trading at 516.0 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
