Why is Akums Drugs & Pharmaceuticals Ltd ?
1
Poor Management Efficiency with a low ROE of 9.70%
- The company has been able to generate a Return on Equity (avg) of 9.70% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 6.10% and Operating profit at 17.54% over the last 5 years
3
Flat results in Dec 25
- INTEREST(9M) At Rs 70.18 cr has Grown at 225.36%
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 5.44% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.06% returns
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Akums Drugs for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Akums Drugs
-7.83%
-0.25
31.48%
Sensex
1.0%
0.08
12.13%
Quality key factors
Factor
Value
Sales Growth (5y)
6.10%
EBIT Growth (5y)
17.54%
EBIT to Interest (avg)
4.74
Debt to EBITDA (avg)
2.32
Net Debt to Equity (avg)
-0.50
Sales to Capital Employed (avg)
1.78
Tax Ratio
3.38%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
15.55%
ROCE (avg)
7.85%
ROE (avg)
9.70%
Valuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
33
Price to Book Value
2.34
EV to EBIT
18.78
EV to EBITDA
12.54
EV to Capital Employed
3.67
EV to Sales
1.37
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
17.63%
ROE (Latest)
9.70%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
6What is working for the Company
PBT LESS OI(Q)
At Rs 83.47 cr has Grown at 49.5% (vs previous 4Q average
NET SALES(Q)
Highest at Rs 1,159.59 cr
PBDIT(Q)
Highest at Rs 146.86 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 12.66%
-7What is not working for the Company
INTEREST(9M)
At Rs 70.18 cr has Grown at 225.36%
Loading Valuation Snapshot...
Here's what is working for Akums Drugs
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 83.47 cr has Grown at 49.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 55.83 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 1,159.59 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 146.86 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 12.66%
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 83.47 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 - Latest six months
At Rs 47.04 cr has Grown at 69.94%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
Highest at Rs 34.33 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






