Nectar Lifescience Ltd (NECLIFE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Trident Lifeline

Medico Remedies

Everest Organics

Haleos Labs Limi

Bafna Pharma.

Valiant Laborato

Nectar Lifesci.

Zim Laboratories

Kerala Ayurveda

Amanta Healthcar

Infinium Pharma

Why is Nectar Lifescience Ltd ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.24 times
The company has been able to generate a Return on Equity (avg) of 0.14% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

PAT(Latest six months) At Rs -1.01 cr has Grown at -97.00%
NET SALES(Q) At Rs 5.71 cr has Fallen at -97.5% (vs previous 4Q average)
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 5.93 cr

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -37.94%, its profits have fallen by -2615.5%

98.77% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.98% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -37.94% returns

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 Nectar Lifesci. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nectar Lifesci.

-37.97%

-0.57

66.93%

Sensex

4.66%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-15.08%

EBIT Growth (5y)

-207.92%

EBIT to Interest (avg)

-0.20

Debt to EBITDA (avg)

4.49

Net Debt to Equity (avg)

0.63

Sales to Capital Employed (avg)

0.84

Tax Ratio

30.24%

Dividend Payout Ratio

Pledged Shares

98.77%

Institutional Holding

0.72%

ROCE (avg)

0.68%

ROE (avg)

0.14%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.66

EV to EBIT

-6.45

EV to EBITDA

-8.32

EV to Capital Employed

0.79

EV to Sales

1.03

PEG Ratio

Dividend Yield

ROCE (Latest)

-12.22%

ROE (Latest)

-17.19%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

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

9What is working for the Company

ROCE(HY)

Highest at 8.19%

DEBTORS TURNOVER RATIO(HY)

Highest at 18.52 times

PBT LESS OI(Q)

Highest at Rs 175.14 cr.

-22What is not working for the Company

PAT(Latest six months)

At Rs -1.01 cr has Grown at -97.00%

NET SALES(Q)

At Rs 5.71 cr has Fallen at -97.5% (vs previous 4Q average

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 5.93 cr

DEBT-EQUITY RATIO(HY)

Highest at 0.64 times

EPS(Q)

Lowest at Rs -7.85

Loading Valuation Snapshot...

Here's what is working for Nectar Lifesci.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 175.14 cr has Grown at 676.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -30.37 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 175.14 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 18.52 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Nectar Lifesci.

Profit After Tax (PAT) - Latest six months

At Rs -1.01 cr has Grown at -97.00%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 5.71 cr has Fallen at -97.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 224.17 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -7.85

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 5.93 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 0.64 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