Wockhardt Ltd (WOCKPHARMA) 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

Neuland Labs.

Emcure Pharma

J B Chemicals &

Astrazeneca Phar

ERIS Lifescience

Pfizer

Ajanta Pharma

Gland Pharma

Wockhardt

Cohance Life

Piramal Pharma

Why is Wockhardt Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0.74%

Poor long term growth as Net Sales has grown by an annual rate of 1.66% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 13.08 times

With ROCE of 3.7, it has a Expensive valuation with a 3.8 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 -5.16%, its profits have risen by 125.7% ; the PEG ratio of the company is 2.4

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 Wockhardt for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wockhardt

-5.1%

-0.09

58.56%

Sensex

4.82%

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)

1.66%

EBIT Growth (5y)

26.64%

EBIT to Interest (avg)

-0.04

Debt to EBITDA (avg)

17.98

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

0.49

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

21.30%

Institutional Holding

18.12%

ROCE (avg)

-1.18%

ROE (avg)

0.32%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

292

Industry P/E

Price to Book Value

4.74

EV to EBIT

102.93

EV to EBITDA

52.40

EV to Capital Employed

3.80

EV to Sales

7.76

PEG Ratio

2.35

Dividend Yield

ROCE (Latest)

3.69%

ROE (Latest)

1.62%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

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

26What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 3.24 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 2,340.00 cr

PBDIT(Q)

Highest at Rs 178.00 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 22.76%

PBT LESS OI(Q)

Highest at Rs 70.00 cr.

PAT(Q)

Highest at Rs 78.00 cr.

EPS(Q)

Highest at Rs 4.81

-3What is not working for the Company

DEBT-EQUITY RATIO(HY)

Highest at 1.96 times

Loading Valuation Snapshot...

Here's what is working for Wockhardt

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 70.00 cr has Grown at 478.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -18.50 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 78.00 cr has Grown at 1300.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -6.50 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 3.24 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Highest at Rs 178.00 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 22.76%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 70.00 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 78.00 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 4.81

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 2,340.00 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 Wockhardt

Debt-Equity Ratio - Half Yearly

Highest at 1.96 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 21.00 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income