Sakar Healthcare Ltd (SAKAR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Venus Remedies

Fredun Pharma

Sakar Healthcare

Wanbury

Kwality Pharma

Lincoln Pharma.

NGL Fine Chem

Themis Medicare

Bharat Parenter.

Accent Microcell

Remus Pharma.

Why is Sakar Healthcare Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 19.01% of over the last 5 years

The company has declared Positive results for the last 4 consecutive quarters

NET SALES(9M) At Rs 160.54 cr has Grown at 26.42%
ROCE(HY) Highest at 8.44%
PAT(9M) Higher at Rs 14.97 Cr

With ROCE of 7.9, it has a Very Expensive valuation with a 2.5 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 -100.00%, its profits have risen by 57.6% ; the PEG ratio of the company is 0.8

High Institutional Holdings at 24.73%

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

Below par performance in long term as well as near term

Along with generating -100.00% returns in the last 1 year, the stock has also underperformed 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 Sakar Healthcare 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 Sakar Healthcare for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sakar Healthcare

18.99%

0.46

41.04%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.59%

EBIT Growth (5y)

19.01%

EBIT to Interest (avg)

4.06

Debt to EBITDA (avg)

2.23

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

0.53

Tax Ratio

13.13%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

24.73%

ROCE (avg)

7.81%

ROE (avg)

6.84%

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

2.83

EV to EBIT

31.41

EV to EBITDA

18.03

EV to Capital Employed

2.48

EV to Sales

4.56

PEG Ratio

0.81

Dividend Yield

ROCE (Latest)

7.89%

ROE (Latest)

6.44%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

17What is working for the Company

NET SALES(9M)

At Rs 160.54 cr has Grown at 26.42%

ROCE(HY)

Highest at 8.44%

PAT(9M)

Higher at Rs 14.97 Cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.24 times

-9What is not working for the Company

INTEREST(9M)

At Rs 7.86 cr has Grown at 81.11%

PBDIT(Q)

Lowest at Rs 11.35 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 19.72%

PBT LESS OI(Q)

Lowest at Rs 4.15 cr.

EPS(Q)

Lowest at Rs 2.04

Loading Valuation Snapshot...

Here's what is working for Sakar Healthcare

Net Sales - Quarterly

Highest at Rs 57.56 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Latest six months

At Rs 9.21 cr has Grown at 27.74%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 57.56 cr has Grown at 34.55%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.24 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Sakar Healthcare

Interest - Nine Monthly

At Rs 7.86 cr has Grown at 81.11%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 11.35 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 19.72%

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 4.15 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 2.04

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Non Operating Income - Quarterly

Highest at Rs 1.21 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income