Mehabe score: 4 G Factor: 3 Piotski Score: 8 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 3 and Piotski score of 8.
Description
Vimta Labs is engaged in the business of testing food and drugs. It also does contract research for clinical research and pre-clinical studies.Site:VIMTALABSMain Symbol:VIMTALABS
Stock trades at 282.0, below its 50dma 287.91. However it is trading above its 200dma 238.29. 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 287.91.
The 52 week high is at 346.50 and the 52week low is at 119.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– Stock is trading at 3.21 times its book value
-The company has delivered a poor sales growth of 8.66% over past five years.
– has a low return on equity of 10.35% for last 3 years.
-Dividend payout has been low at 12.75% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 26.8x. Affle India trades at the industry’s max P/E of 96.36x. VIMTALABS trades at a P/E of 19.9x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 9.0. VIMTALABS has a G-Factor of 3 and Piotski scoreof 8.
– Average 1 month return for industry is 7.5%. The max 1- month return was given by Indian Energy Ex: a return of 27.18 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 74.7 cr compared to Rs 58.8 cr for period ended Sep 2020, a rise of 27.0%
Operating Profits reported at Rs 19.62 cr for period ended Sep 2021 vis-vis 15.8 for period ended Sep 2020 .
Operating Margins contracted -60.6 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 4.3 compared to Rs 3.67 for previous quarter ended Jun 2021 and Rs 3.34 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 253.0 cr for period ended TTM vis-vis sales of Rs 209.0 cr for the period ended Mar 2021, a healthy growth of 17.4%. The 3 year sales cagr stood at 5.9%.
Operating margins expanded to 27.0% for period ended TTM vis-vis 25.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 33.0 cr for period ended TTM vis-vis sales of Rs 21.0 cr for the period ended Mar 2021, rising 36.4%.
Company recorded a Net Profit CAGR of 9.7% 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 37.0 cr for period ended Mar 2021 vis-vis Rs 24.0 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 12.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 106% on a 1 Year basis vis-vis a return of 4% over the last 3 Years. – The compounded sales growth on a TTM bassis is 40% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is 707% vis-vis a compounded profit growth of 9% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.0% vis-vis 0.0% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 61.14% vis-vis 62.43% for Jun 2021
Conclusion
– is expected to give good quarter – Stock is trading at 3.21 times its book value
-The company has delivered a poor sales growth of 8.66% over past five years.
– has a low return on equity of 10.35% for last 3 years.
-Dividend payout has been low at 12.75% of profits over last 3 years
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 287.91 and is trading at 282.0. 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
