MOREPEN LABORATORIES - Q2 FY 21 RESULTS REVIEW

 

MOREPEN LABORATORIES

Q2 FY 21 RESULTS REVIEW

 

 

COMPANY OVERVIEW

 

Morepen Laboratories Limited is an India-based pharmaceutical company. Its products include Loratadine, Montelukast Sodium, Atorvastatin Calcium and Sultamicillin.

The company markets formulation products in various therapeutic categories, such as antibiotics, gastrointestinal, respiratory, analgesic, antiallergic and neuropsychiatry with brands, such as Saltum, Saltumax, Cefpopen, Cefpen-S, Dom-DT, Acifix, Rabipen- DSR and Montelast. 

It has new products added to the therapeutic categories, including Kilbac, Ducal D, Aclomore and Montelast-L. The company has three state-of-the-art manufacturing plants in the northern state of Himachal Pradesh (HP) in India.

 

 

MANAGEMENT

Sushil Suri  Chairman & Managing Director

Arun Kumar Sinha  Whole Time Director

Sanjay Suri  Whole Time Director

 

 

Quarterly Results of Morepen Laboratories (in Rs. Cr.)	Sep '20	Jun '20	Sep '19	YOY	QOQ
Net Sales	336.4	257.64	213.43	57.62	30.57
Net P/L After M.I & Associates	27.17	19.37	4.08	565.93	40.27
Equity Share Capital	89.96	89.96	89.96	0	0
Basic EPS	0.6	0.43	0.09	566.67	39.53
Consumption of Raw Materials	179.92	133.15	106.34	69.19	35.13
Purchase of Traded Goods	52.48	41.34	43.35	21.06	26.95
Increase/Decrease in Stocks	-5.44	-1.72	-9.78	-44.38	216.28
Power & Fuel	3.21	2.42	3.41	-5.87	32.64
Employees Cost	32.41	29.48	27.31	18.67	9.94
Depreciation	7.68	8.06	8.24	-6.8	-4.71
Admin. And Selling Expenses	14.1	10.66	9.31	51.45	32.27
Other Expenses	27.96	15.74	18.42	51.79	77.64
P/L Before Other Inc., Int., Excpt. Items & Tax	24.08	18.51	6.82	253.08	30.09
Other Income	3.73	1.33	2.81	32.74	180.45
P/L Before Int., Excpt. Items & Tax	27.81	19.84	9.63	188.79	40.17
Interest	0.29	0.29	0.39	-25.64	0
P/L Before Tax	27.52	19.56	9.24	197.84	40.7
Tax	0.35	0.19	5.16	-93.22	84.21
P/L After Tax from Ordinary Activities	27.17	19.37	4.08	565.93	40.27

 

MP  27.45                  

PE   11.44                  

VOLUMES      44,90,371                  

52 Wk L/H     7.21       34.95           

MONTHLY                        

TECHNICAL RATING                     

Very Bullish                      

                          

Valuation                        

Market Cap (Rs Cr.)    1,234.77

P/E                             28.84    

Book Value (Rs)                 6.83      

FV                                      2    

 

Annual	Mar-20	Mar-19	Mar-18	Sep-17	Mar-17
Sales	853	768	606	280	595
Net Profit	33	28	29	12	23
Other Income	9	3	3	2	3
Total Income	862	772	610	282	599
Total Expenditure	821	740	576	267	568
EBIT	41	31	34	15	31
Interest	1	2	4	2	7
Tax	5	0	0	0	0

 

CASH FLOWS	Mar-20	Mar-19	Mar-18	Sep-17	Mar-17
Operating Activities	11	17	63	0	40
Investing Activities	-12	-13	-26	0	-13
Financing Activities	5	0	-37	0	-23
Others	0	0	0	0	0
Net Cash Flow	4	3	-1	0	3

 

Leverage Ratios	Mar-20	Mar-19	Mar-18	Sep-17	Mar-17
Debt to Equity (x)	0	0.04	0.79	0	0.64
Interest Coverage Ratios (%)	21	14.83	7.83	5.69	4.13
Margin Ratios	Mar-20	Mar-19	Mar-18	Sep-17	Mar-17
Gross Profit Margin (%)	9	9.26	11.28	11.14	10.93
Operating Margin (%)	5	4.07	5.62	5.35	5.23
Net Profit Margin (%)	4	3.75	4.9	4.4	3.96

 

historical prices	Then	Now	diff%
3yr befo	19.8	27.45	47.98
2yr befo	24.65	27.45	18.86
1yr befo	17.15	27.45	70.85
3m beofre	23	27.45	27.39
1m befo	29.8	27.45	-1.68
1w befor	25	27.45	17.2

 

Type	Dividend%	Ex-Dividend date
Final	30	Sep 18, 2002
Final	10	Sep 03, 2001
Interim	25	Jan 24, 2001
Final	5	Aug 18, 2000

 

share holding	Sep-20	Jun-20	Mar-20	Dec-19
Promoters	34.54	34.54	34.54	34.54
Pledged	0	0	0	0
FII/FPI	0.82	0.82	0.74	0.74
Total DII	22.36	24	23.65	23.59
Fin.Insts	0.3	0.5	0.43	0.61
Insurance Co	4.55	4.82	4.82	4.82
MF	0	0	0	0
Others DIIs	17.51	18.68	18.4	18.16
Others	42.28	40.65	41.07	41.13
Total	100	100.01	100	100

 

 STRENGTHS

High Piotroski Score - Companies with strong financials

MACD Crossover Above Signal Line

Company with high TTM EPS Growth

Good quarterly growth in the recent results

Effectively using its capital to generate profit - RoCE improving in last 2 years

Growth in Net Profit with increasing Profit Margin (QoQ)

Growth in Quarterly Net Profit with increasing Profit Margin (YoY)

Company with Low Debt

Increasing profits every quarter for the past 3 quarters

Company able to generate Net Cash - Improving Net Cash Flow for last 2 years

Book Value per share Improving for last 2 years

Company with Zero Promoter Pledge

Companies with rising net profit margins - quarterly as well as TTM basis

Strong Momentum: Price above short, medium and long term moving averages

WEAKNESSES

Poor cash generated from core business - Declining Cash Flow from Operations for last 2 years

OPPORTUNITIES

Companies with current TTM PE Ratio less than 3 Year, 5 Year and 10 Year PE

Positive Breakout Third Resistance ( LTP > R3)

Highest Recovery from 52 Week Low

RSI indicating price strength

High Volume, High Gain

 

NEWS

31.08.2020

 

Morepen Laboratories Q1 net profit jumps over two-fold to Rs 19.36 crore

 

23.06.2020

 

Morepen Lab Standalone March 2020 Net Sales at Rs 189.15 crore, down 8.21% Y-o-Y

 

23.06.2020

 

Morepen Lab Consolidated March 2020 Net Sales at Rs 206.60 crore, down 5.54% Y-o-Y

 

22.06.2020

 

Morepen Labs Q4 net profit rises 5% to Rs 11 crore