Innova Captab Ltd (INNOVACAP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Senores Pharma.

Innova Captab

RPG LifeScience.

Advanced Enzyme

Supriya Lifesci.

Guj. Themis Bio.

Aarti Pharma

FDC

SPARC

Zota Health Care

Sudeep Pharma

Why is Innova Captab Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.44 times

Poor long term growth as Operating profit has grown by an annual rate 18.13% of over the last 5 years

Flat results in Mar 26

INTEREST(9M) At Rs 14.04 cr has Grown at 181.93%
INVENTORY TURNOVER RATIO(HY) Lowest at 5.75 times
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 3.87 cr

With ROCE of 13.9, it has a Very Attractive valuation with a 3.8 Enterprise value to Capital Employed

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 0.22%, its profits have risen by 9.9% ; the PEG ratio of the company is 3.6

High Institutional Holdings at 20.37%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Innova Captab 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 Innova Captab for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Innova Captab

0.22%

0.01

37.88%

Sensex

-3.74%

-0.28

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.78%

EBIT Growth (5y)

18.13%

EBIT to Interest (avg)

28.28

Debt to EBITDA (avg)

1.99

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

1.04

Tax Ratio

25.15%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

20.37%

ROCE (avg)

13.54%

ROE (avg)

13.14%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.59

EV to EBIT

27.47

EV to EBITDA

22.26

EV to Capital Employed

3.82

EV to Sales

3.26

PEG Ratio

3.60

Dividend Yield

0.23%

ROCE (Latest)

13.91%

ROE (Latest)

12.92%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

NET SALES(Latest six months)

At Rs 898.09 cr has Grown at 42.28%

PAT(Latest six months)

At Rs 80.23 cr has Grown at 25.81%

PBT LESS OI(Q)

At Rs 49.12 cr has Grown at 20.4% (vs previous 4Q average

-7What is not working for the Company

INTEREST(9M)

At Rs 14.04 cr has Grown at 181.93%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.75 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 3.87 cr

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Here's what is working for Innova Captab

Net Sales - Latest six months

At Rs 898.09 cr has Grown at 42.28%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Latest six months

At Rs 80.23 cr has Grown at 25.81%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 49.12 cr has Grown at 20.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 40.80 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Innova Captab

Interest - Nine Monthly

At Rs 14.04 cr has Grown at 181.93%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Inventory Turnover Ratio- Half Yearly

Lowest at 5.75 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 3.87 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents