SMS Pharmaceuticals Ltd (SMSPHARMA) 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

SPARC

Senores Pharma.

Advanced Enzyme

IOL Chemicals

Guj. Themis Bio.

SMS Pharma.

Innova Captab

Aarti Drugs

RPG LifeScience.

Zota Health Care

Orchid Pharma

Why is SMS Pharmaceuticals Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 12.93% and Operating profit at 13.42% over the last 5 years

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

DEBTORS TURNOVER RATIO(HY) Highest at 4.11 times
PAT(Q) Highest at Rs 32.71 cr.
EPS(Q) Highest at Rs 3.49

With ROCE of 13.1, it has a Expensive valuation with a 4 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 45.18%, its profits have risen by 35.5% ; the PEG ratio of the company is 1.8

Majority shareholders : Promoters

Consistent Returns over the last 3 years

Along with generating 45.18% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SMS Pharma. 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 SMS Pharma. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

SMS Pharma.

45.18%

0.94

48.13%

Sensex

-6.4%

-0.49

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.93%

EBIT Growth (5y)

13.42%

EBIT to Interest (avg)

4.30

Debt to EBITDA (avg)

2.95

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

0.80

Tax Ratio

26.23%

Dividend Payout Ratio

4.08%

Pledged Shares

17.99%

Institutional Holding

3.33%

ROCE (avg)

10.77%

ROE (avg)

9.74%

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

4.89

EV to EBIT

28.37

EV to EBITDA

22.04

EV to Capital Employed

3.98

EV to Sales

4.23

PEG Ratio

1.77

Dividend Yield

0.10%

ROCE (Latest)

13.07%

ROE (Latest)

11.57%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

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

13What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 4.11 times

PAT(Q)

Highest at Rs 32.71 cr.

EPS(Q)

Highest at Rs 3.49

-3What is not working for the Company

PBT LESS OI(Q)

At Rs 24.50 cr has Fallen at -11.6% (vs previous 4Q average

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Here's what is working for SMS Pharma.

Profit After Tax (PAT) - Quarterly

At Rs 32.71 cr has Grown at 46.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 22.40 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 4.11 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Profit After Tax (PAT) - Quarterly

Highest at Rs 32.71 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 3.49

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for SMS Pharma.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 24.50 cr has Fallen at -11.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 27.73 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)