Why is Kwality Pharmaceuticals Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of 14.95% and Operating profit at 6.21% over the last 5 years
2
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
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 Kwality Pharma for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Kwality Pharma
1.75%
0.03
53.19%
Sensex
4.32%
0.45
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
14.95%
EBIT Growth (5y)
6.21%
EBIT to Interest (avg)
8.12
Debt to EBITDA (avg)
1.06
Net Debt to Equity (avg)
0.26
Sales to Capital Employed (avg)
0.96
Tax Ratio
25.63%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.33%
ROCE (avg)
17.19%
ROE (avg)
16.81%
Valuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
34
Price to Book Value
3.21
EV to EBIT
13.71
EV to EBITDA
10.85
EV to Capital Employed
2.75
EV to Sales
2.39
PEG Ratio
0.42
Dividend Yield
NA
ROCE (Latest)
20.07%
ROE (Latest)
16.91%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
Technical Movement
25What is working for the Company
OPERATING CF(Y)
Highest at Rs 52.72 Cr
NET SALES(9M)
At Rs 338.21 cr has Grown at 29.04%
ROCE(HY)
Highest at 19.03%
INVENTORY TURNOVER RATIO(HY)
Highest at 5.04 times
PBT LESS OI(Q)
At Rs 17.55 cr has Grown at 42.34%
PAT(9M)
Higher at Rs 40.54 Cr
DEBT-EQUITY RATIO(HY)
Lowest at 0.38 times
OPERATING PROFIT TO NET SALES(Q)
Highest at 22.83%
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Kwality Pharma
Operating Cash Flow - Annually
Highest at Rs 52.72 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 17.55 cr has Grown at 42.34%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 14.12 cr has Grown at 66.7%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Inventory Turnover Ratio- Half Yearly
Highest at 5.04 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales - Quarterly
At Rs 111.05 cr has Grown at 23.35%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 22.83%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Debt-Equity Ratio - Half Yearly
Lowest at 0.38 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio






