Natural Capsules Ltd (NATCAPSUQ) 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

Auro Labs.

Parnax Lab

Coral Labs.

Alpa Laboratorie

Sanjiv.Parant.

Balaxi Pharma

Kimia Bioscien.

Natural Capsules

Guj. Inject(Ker)

Speciality Medi.

Bio Medica Lab

Why is Natural Capsules Ltd ?

Weak Long Term Fundamental Strength with a -223.06% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of -73.55 times
The company has been able to generate a Return on Equity (avg) of 6.79% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

INTEREST(9M) At Rs 8.42 cr has Grown at 47.46%
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 4.82 cr
DEBT-EQUITY RATIO(HY) Highest at 0.49 times

Risky - Negative EBITDA

The company has recorded a negative EBITDA of Rs. -1.57 cr
Over the past year, while the stock has generated a return of -28.10%, its profits have fallen by -2141%
The stock is trading risky as compared to its average historical valuations

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -1.62% in the last 1 year, its fall in the stock was much higher with a return of -28.10%

Real-Time Research Report

Verdict Report

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 Natural Capsules for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Natural Capsules

-28.47%

-0.55

51.90%

Sensex

-8.03%

-0.61

13.11%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.68%

EBIT Growth (5y)

-223.06%

EBIT to Interest (avg)

4.02

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.71

Tax Ratio

11.68%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.93%

ROE (avg)

6.79%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.75

EV to EBIT

-14.82

EV to EBITDA

-176.62

EV to Capital Employed

0.83

EV to Sales

1.48

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.63%

ROE (Latest)

-9.45%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

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

2What is working for the Company

NET SALES(Q)

Highest at Rs 58.45 cr

-5What is not working for the Company

INTEREST(9M)

At Rs 8.42 cr has Grown at 47.46%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 4.82 cr

DEBT-EQUITY RATIO(HY)

Highest at 0.49 times

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Here's what is working for Natural Capsules

Net Sales - Quarterly

Highest at Rs 58.45 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 58.45 cr has Grown at 34.6% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 43.43 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Natural Capsules

Interest - Nine Monthly

At Rs 8.42 cr has Grown at 47.46%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 4.82 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Highest at 0.49 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio