Novartis India Ltd (NOVARTIND) 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

IOL Chemicals

RPG LifeScience.

Novartis India

Gufic BioScience

SMS Pharma.

Morepen Labs.

Aarti Drugs

Panacea Biotec

Solara Active

Unichem Labs.

Dishman Carbogen

Why is Novartis India Ltd ?

The company is Net-Debt Free

Healthy long term growth as Operating profit has grown by an annual rate 44.49%

Negative results in Mar 26

ROCE(HY) Lowest at 15.95%
PAT(Q) At Rs 25.25 cr has Fallen at -13.8%
PBDIT(Q) Lowest at Rs 20.62 cr.

With ROE of 11.4, it has a Very Expensive valuation with a 3.9 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 28.48%, its profits have fallen by -7.7%

Despite the size of the company, domestic mutual funds hold only 0.01% 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

Market Beating performance in long term as well as near term

Along with generating 28.48% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Novartis India 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 Novartis India for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Novartis India

28.48%

0.76

37.60%

Sensex

-5.98%

-0.45

13.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.46%

EBIT Growth (5y)

44.49%

EBIT to Interest (avg)

48.35

Debt to EBITDA (avg)

0.42

Net Debt to Equity (avg)

-0.81

Sales to Capital Employed (avg)

0.48

Tax Ratio

28.14%

Dividend Payout Ratio

61.15%

Pledged Shares

Institutional Holding

0.71%

ROCE (avg)

36.34%

ROE (avg)

11.13%

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

3.89

EV to EBIT

27.32

EV to EBITDA

26.75

EV to Capital Employed

16.42

EV to Sales

7.10

PEG Ratio

Dividend Yield

1.94%

ROCE (Latest)

60.10%

ROE (Latest)

11.39%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

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

3What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 667.70 cr

DEBTORS TURNOVER RATIO(HY)

Highest at 9.56 times

NET SALES(Q)

Highest at Rs 90.55 cr

-13What is not working for the Company

ROCE(HY)

Lowest at 15.95%

PAT(Q)

At Rs 25.25 cr has Fallen at -13.8%

PBDIT(Q)

Lowest at Rs 20.62 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 22.77%

PBT LESS OI(Q)

Lowest at Rs 20.13 cr.

NON-OPERATING INCOME(Q)

is 33.21 % of Profit Before Tax (PBT

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Here's what is working for Novartis India

Net Sales - Quarterly

Highest at Rs 90.55 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 667.70 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Highest at 9.56 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 Novartis India

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 20.13 cr has Fallen at -13.46%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 25.25 cr has Fallen at -13.8%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 20.62 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 22.77%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 20.13 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 33.21 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT