ScoreWhy is SMS Pharmaceuticals Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate 16.91% of over the last 5 years
2
Positive results in Sep 25
- NET SALES(Latest six months) At Rs 438.48 cr has Grown at 21.40%
- ROCE(HY) Highest at 12.36%
- DEBT-EQUITY RATIO(HY) Lowest at 0.45 times
3
With ROCE of 13.1, it has a Expensive valuation with a 3.4 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 21.10%, its profits have risen by 42.2% ; the PEG ratio of the company is 1.3
4
34.65% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
5
Consistent Returns over the last 3 years
- Along with generating 21.10% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow 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.
58.29%
0.43
49.25%
Sensex
8.49%
0.43
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.42%
EBIT Growth (5y)
16.91%
EBIT to Interest (avg)
4.51
Debt to EBITDA (avg)
2.95
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
0.80
Tax Ratio
25.93%
Dividend Payout Ratio
4.08%
Pledged Shares
17.99%
Institutional Holding
3.25%
ROCE (avg)
10.77%
ROE (avg)
9.74%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
32
Price to Book Value
4.04
EV to EBIT
25.47
EV to EBITDA
19.63
EV to Capital Employed
3.33
EV to Sales
3.69
PEG Ratio
1.23
Dividend Yield
0.12%
ROCE (Latest)
13.07%
ROE (Latest)
11.57%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
NET SALES(Latest six months)
At Rs 438.48 cr has Grown at 21.40%
ROCE(HY)
Highest at 12.36%
DEBT-EQUITY RATIO(HY)
Lowest at 0.45 times
OPERATING PROFIT TO INTEREST(Q)
Highest at 8.43 times
PBT LESS OI(Q)
At Rs 32.61 cr has Grown at 45.9% (vs previous 4Q average
PAT(9M)
Higher at Rs 66.12 Cr
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 99.68 cr
PBDIT(Q)
Highest at Rs 48.36 cr.
EPS(Q)
Highest at Rs 2.70
-4What is not working for the Company
INTEREST(Latest six months)
At Rs 11.58 cr has Grown at 24.92%
Loading Valuation Snapshot...
Here's what is working for SMS Pharma.
Operating Profit to Interest - Quarterly
Highest at 8.43 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 32.61 cr has Grown at 45.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 22.36 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 25.31 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Latest six months
At Rs 438.48 cr has Grown at 21.40%
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 periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Profit (PBDIT) - Quarterly
Highest at Rs 48.36 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 32.61 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 25.31 cr has Grown at 38.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 18.29 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 2.70
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 99.68 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for SMS Pharma.
Interest - Latest six months
At Rs 11.58 cr has Grown at 24.92%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
