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 Attractive valuation with a 3.3 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 41.71%, its profits have fallen by -16%
5
Majority shareholders : Promoters
6
Market Beating Performance
- The stock has generated a return of 41.71% in the last 1 year, much higher than market (BSE500) returns of 4.11%
How much should you buy?
- 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, High Return
Absolute
Risk Adjusted
Volatility
Akums Drugs
41.71%
1.32
31.52%
Sensex
-2.63%
-0.19
13.57%
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
15.35%
ROCE (avg)
10.39%
ROE (avg)
9.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
41
Industry P/E
37
Price to Book Value
3.29
EV to EBIT
25.50
EV to EBITDA
17.95
EV to Capital Employed
5.23
EV to Sales
2.15
PEG Ratio
NA
Dividend Yield
0.43%
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
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Dow Theory
No Trend
No Trend
OBV
Bullish
No Trend
Technical Movement
14What is working for the Company
ROCE(HY)
Highest at 14.30%
OPERATING PROFIT TO INTEREST(Q)
Highest at 7.05 times
NET SALES(Q)
Highest at Rs 1,166.63 cr
PBDIT(Q)
Highest at Rs 174.68 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 14.97%
PBT LESS OI(Q)
Highest at Rs 108.86 cr.
PAT(Q)
Highest at Rs 100.01 cr.
EPS(Q)
Highest at Rs 6.53
-4What is not working for the Company
INTEREST(9M)
At Rs 72.39 cr has Grown at 42.00%
Loading Valuation Snapshot...
Here's what is working for Akums Drugs
Operating Profit to Interest - Quarterly
Highest at 7.05 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 108.86 cr has Grown at 59.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 68.35 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 100.01 cr has Grown at 48.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 67.20 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 1,166.63 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 174.68 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 14.97%
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 108.86 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 100.01 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 6.53
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Akums Drugs
Interest - Nine Monthly
At Rs 72.39 cr has Grown at 42.00%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)






