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

SMS Pharma.

Senores Pharma.

Innova Captab

Supriya Lifesci.

RPG LifeScience.

Guj. Themis Bio.

Advanced Enzyme

Aarti Drugs

FDC

Zota Health Care

SPARC

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

Positive results in Dec 25

PAT(Latest six months) At Rs 48.78 cr has Grown at 50.83%
NET SALES(Latest six months) At Rs 452.88 cr has Grown at 22.37%
ROCE(HY) Highest at 12.36%

With ROCE of 13.1, it has a Expensive valuation with a 3.9 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 91.32%, its profits have risen by 35.5% ; the PEG ratio of the company is 1.7

Majority shareholders : Promoters

Consistent Returns over the last 3 years

Along with generating 91.32% 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.

90.22%

1.89

48.46%

Sensex

2.15%

0.20

12.28%

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

3.25%

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

4.74

EV to EBIT

27.54

EV to EBITDA

21.40

EV to Capital Employed

3.86

EV to Sales

4.11

PEG Ratio

1.72

Dividend Yield

0.10%

ROCE (Latest)

13.07%

ROE (Latest)

11.57%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

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

16What is working for the Company

PAT(Latest six months)

At Rs 48.78 cr has Grown at 50.83%

NET SALES(Latest six months)

At Rs 452.88 cr has Grown at 22.37%

ROCE(HY)

Highest at 12.36%

DEBT-EQUITY RATIO(HY)

Lowest at 0.45 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 99.68 cr

-2What is not working for the Company

INTEREST(9M)

At Rs 17.80 cr has Grown at 28.24%

Loading Valuation Snapshot...

Here's what is working for SMS Pharma.

Profit After Tax (PAT) - Latest six months

At Rs 48.78 cr has Grown at 50.83%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Latest six months

At Rs 452.88 cr has Grown at 22.37%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.45 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

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

Debt-Equity Ratio

Cash and Cash Equivalents - Half Yearly

Highest at Rs 99.68 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for SMS Pharma.

Interest - Nine Monthly

At Rs 17.80 cr has Grown at 28.24%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

Highest at Rs 3.75 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income