VIMTA LABS LTD - Q2 FY 21- RESULTS REVIEW - DT 17 10 2020

 

VIMTA LABS LTD

Q2 FY 21 RESULTS REVIEW

DT 17 10 2020

MANAGEMENT

S.P.VASIREDDI          CHAIRMAN AND NON EXEC.DIRECTOR

HARITA VASIREDDI     MANAGING DIRECTOR

V HARRIMAN                EXEC.DIRECTOR OPERATIONS

 

COMPANY OVERVIEW

Vimta Labs Ltd is Indias leading contract research and testing organization.

The company supports regulatory authorities in mandatory certification of food and agri products exported from India.

Vimta assists the food industry commissions for nutritional labelling, food safety evaluations, trace analysis and shelf life studies.

The services offered by the company includes Advanced Molecular Biology,Food and Agriculture, Drugs & Pharma, Water, Environmental Assessments, Clinical Research etc.

Wide range cGMP compliant, large capacities, market leader in contract testing and analytical R&D services

1st laboratory in Asia to be pre-qualified by WHO for Medicines Programme Inspection of Quality Control Laboratory

Successfully audited by USFDA

1st Laboratory in India to offer Customer Specific Contract Laboratories

Vimta is currently operational at Hyderabad (Cherlapally, Shameerpet),  Pune, Vizag, Bangalore, Cochin, Ahmedabad, Kolkata and Nellore.

 

Vimta Labs (in Rs. Cr.)	Sep '20	Jun '20	Sep '19	YOY	QOQ
Net Sales	58.8	32.57	42.45	38.52	80.53
Consumption of Raw Materials	16.8	8.8	12.6	33.1	91.02
Increase/Decrease in Stocks	1.05	1.02	-0.04	-2725	2.94
Employees Cost	15.26	12.81	15.06	1.33	19.13
depreciat	5.78	5.64	5.21	10.94	2.48
Other Expenses	9.88	6.28	8.5	16.24	57.32
P/L Before Other Inc. , Int., Excpt. Items & Tax	10.02	-1.98	1.09	819.27	-606.06
Other Income	0.04	0.23	0.35	-88.57	-82.61
P/L Before Int., Excpt. Items & Tax	10.05	-1.75	1.45	593.1	-674.29
Interest	0.32	0.59	0.99	-67.68	-45.76
P/L Before Tax	9.74	-2.34	0.46	2017.39	-516.24
Tax	2.36	-0.47	-0.44	-636.36	-602.13
Net Profit	7.38	-1.88	0.9	720	-493
Equity	4.42	4.42	4.42	0	0
Basic EPS	3.34	-0.85	0.41	714.63	-493

 

MP  140

PE   10.48

VOLUMES      98000

TECH ANALYSIS

DAILY/WEEKLY

TECHNICAL RATING

Very Bullish

Valuation

Market Cap (Rs Cr.) 308.29

P/E 79.43

Book Value (Rs) 78.23

Industry P/E  54.94

EPS (TTM)   1.76

P/C   12.46

Price/Book  1.78

Face Value (RS)  2

Deliverables (%)  47.83

 ANNUAL RESULTS

Annual	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Sales	180	212	183	153	124
Other Income	3	1	1	0	1
Total Income	183	214	184	154	125
Total Expenditure	171	174	153	136	116
EBIT	12	39	30	18	9
Interest	3	4	5	2	1
Tax	1	9	9	5	1
Net Profit	6	25	16	10	6

 

CASH FLOWS	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Operating Activities	24	39	33	23	-1
Investing Activities	-20	-15	-23	-39	-15
Financing Activities	-1	-22	-8	13	18
Others	0	0	0	0	0
Net Cash Flow	2	0	1	-2	2

 

 

Per Share Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Basic EPS (Rs.)	3.13	11.45	7.43	4.79	3
Diluted Eps (Rs.)	3.13	11.45	7.43	4.79	3
Book Value [Excl. Reval Reserve]/Share (Rs.)	78.23	77.59	68.77	61.58	57.04
Dividend/Share (Rs.)	0	2	2	0	1
Face Value	2	2	2	2	2
Margin Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Gross Profit Margin (%)	18.28	27.96	25.32	18.36	15.96
Operating Margin (%)	6.7	18.69	16.76	12.1	7.74
Net Profit Margin (%)	3.83	11.9	8.95	6.88	5.15
Return Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Return on Networth / Equity (%)	4	14.75	10.8	7.77	5.1
ROCE (%)	6.46	20.47	16.86	11.48	4.39
Return On Assets (%)	2.83	10.66	7.07	4.77	3.66
Liquidity Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Current Ratio (X)	1.67	2.13	1.68	1.17	2.41
Quick Ratio (X)	1.37	1.69	1.31	0.92	1.86
Leverage Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Debt to Equity (x)	0.13	0.1	0.21	0.28	0.21
Interest Coverage Ratios (%)	3.22	8.63	5.92	8.92	7.41
Turnover Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Asset Turnover Ratio (%)	73.88	89.56	78.98	69.41	71.01
Inventory Turnover Ratio (X)	10.55	11.17	10.04	10.11	7.75
Valuation Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
P/E (x)	0	28.01	33.63	61.25	64.75
P/B (x)	0.76	2.58	2.55	1.8	1.24
EV/EBITDA (x)	4.44	7.66	8.99	9.94	8.99
P/S (x)	0.73	2.08	2.11	1.59	1.25
Growth Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
3 Yr CAGR Sales (%)	5.5	19.47	19.59	9.15	4.56
3 Yr CAGR Net Profit (%)	-13.18	57.89	48.08	-7.17	15.16

 

Historical Prices
	3YR BEF	Current Price	%Gain / Loss
Open Price	135	139.45	3.3
	2YR BEF
Open Price	260	139.45	-46.37
	1YR BEF
Open Price	102.4	139.45	36.18
	3M BEF
Open Price	89.8	139.45	55.29

 

Dividend%	Ex-Dividend date
Final	100	Jul 18, 2019
Final	100	Aug 14, 2018
Final	50	Aug 25, 2016
Final	50	Aug 06, 2015
Final	100	Jun 27, 2014

 

Share Holding Pattern in (%)
Standalone	Sep-20	Jun-20	Mar-20	Sep-19
Promoters	37.46	37.46	37.46	37.46
Pledged	0	0	0	0
FII/FPI	0	0	0	0.09
Total DII	32.9	34.04	34.48	35.2
Fin.Insts	0	0.14	0.09	0.17
Insurance Co	0	0	0	0
MF	0	0	0	0
Others DIIs	32.9	33.9	34.39	35.03
Others	29.64	28.5	28.06	27.25
Total	100	100	100	100

 

STRENGTHS

Company with Low Debt

Book Value per share Improving for last 2 years

Company with Zero Promoter Pledge

WEAKNESSES

Degrowth in Revenue and Profit

Decline in Net Profit with falling Profit Margin (QoQ)

Declining Revenue every quarter for the past 2 quarters

Declining profits every quarter for the past 2 quarters

Major fall in TTM Net Profit

Fall in Quarterly Revenue and Net Profit (YoY)

OPPORTUNITIES

Positive Breakout Second Resistance ( LTP > R2)

Highest Recovery from 52 Week Low

High Volume, High Gain

THREATS

Profit to Loss Companies

Degrowth in Revenue, Profits and Operating Profit Margin in recent results (QoQ)

Stocks with high PE (PE > 40)