Unichem Laboratories Ltd (UNICHEMLAB) 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

SMS Pharma.

Senores Pharma.

RPG LifeScience.

IOL Chemicals

Dishman Carbogen

Unichem Labs.

Advanced Enzyme

Indoco Remedies

Gufic BioScience

Morepen Labs.

Hikal

Why is Unichem Laboratories Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.87 times

Poor long term growth as Net Sales has grown by an annual rate of 12.60% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.87 times
The company has been able to generate a Return on Equity (avg) of 1.44% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

INTEREST(Q) At Rs 8.24 cr has Grown at 25.99%
DEBT-EQUITY RATIO(HY) Highest at 0.21 times
NON-OPERATING INCOME(Q) is 44.20 % of Profit Before Tax (PBT)

Below par performance in long term as well as near term

Along with generating -44.04% 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 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 Unichem Labs. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Unichem Labs.

-44.5%

-1.20

36.95%

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)

12.60%

EBIT Growth (5y)

37.55%

EBIT to Interest (avg)

-1.70

Debt to EBITDA (avg)

4.66

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

0.57

Tax Ratio

11.37%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

11.74%

ROCE (avg)

-0.39%

ROE (avg)

1.44%

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

1.30

EV to EBIT

25.83

EV to EBITDA

13.46

EV to Capital Employed

1.27

EV to Sales

1.56

PEG Ratio

0.05

Dividend Yield

ROCE (Latest)

4.90%

ROE (Latest)

6.03%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

11What is working for the Company

PAT(Latest six months)

At Rs 35.90 cr has Grown at 34.46%

ROCE(HY)

Highest at 6.30%

-10What is not working for the Company

INTEREST(Q)

At Rs 8.24 cr has Grown at 25.99%

DEBT-EQUITY RATIO(HY)

Highest at 0.21 times

NON-OPERATING INCOME(Q)

is 44.20 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs -1.69

Loading Valuation Snapshot...

Here's what is working for Unichem Labs.

Profit After Tax (PAT) - Quarterly

At Rs 46.37 cr has Grown at 48.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 31.25 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Here's what is not working for Unichem Labs.

Interest - Quarterly

At Rs 8.24 cr has Grown at 25.99%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Interest - Quarterly

Highest at Rs 8.24 cr

in the last five quarters and Increased by 25.99 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 44.20 % 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

Earnings per Share (EPS) - Quarterly

Lowest at Rs -1.69

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Highest at 0.21 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

Non Operating Income - Quarterly

Highest at Rs 20.97 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income