Why is Akums Drugs & Pharmaceuticals Ltd ?
1
The company is Net-Debt Free
2
Poor long term growth as Net Sales has grown by an annual rate of 6.00% and Operating profit at 17.74% over the last 5 years
3
Flat results in Mar 26
- INTEREST(9M) At Rs 70.93 cr has Grown at 116.18%
- PAT(9M) At Rs 205.31 cr has Grown at -22.12%
4
With ROE of 8.1, it has a Very Attractive valuation with a 2.4 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -9.53%, its profits have fallen by -16%
5
Majority shareholders : Promoters
How much should you hold?
- Overall Portfolio exposure to Akums Drugs should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Akums Drugs for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Akums Drugs
-8.58%
-0.32
29.55%
Sensex
-7.64%
-0.58
12.97%
Quality key factors
Factor
Value
Sales Growth (5y)
6.00%
EBIT Growth (5y)
17.74%
EBIT to Interest (avg)
4.28
Debt to EBITDA (avg)
1.92
Net Debt to Equity (avg)
-0.46
Sales to Capital Employed (avg)
1.67
Tax Ratio
32.90%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
15.72%
ROCE (avg)
10.39%
ROE (avg)
9.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
30
Industry P/E
35
Price to Book Value
2.44
EV to EBIT
17.83
EV to EBITDA
12.55
EV to Capital Employed
3.66
EV to Sales
1.50
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
20.53%
ROE (Latest)
8.11%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
7What is working for the Company
ROCE(HY)
Highest at 14.30%
PBDIT(Q)
Highest at Rs 151.72 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 13.10%
PBT LESS OI(Q)
Highest at Rs 87.72 cr.
-7What is not working for the Company
INTEREST(9M)
At Rs 70.93 cr has Grown at 116.18%
PAT(9M)
At Rs 205.31 cr has Grown at -22.12%
Loading Valuation Snapshot...
Here's what is working for Akums Drugs
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 87.72 cr has Grown at 49.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 58.77 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 151.72 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 13.10%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 87.72 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Akums Drugs
Interest - Nine Monthly
At Rs 70.93 cr has Grown at 116.18%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit After Tax (PAT) - Nine Monthly
At Rs 205.31 cr has Grown at -22.12%
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
Non Operating Income - Quarterly
Highest at Rs 35.30 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






