Attractive Stock – Thyrocare Technologies Ltd – Fundamental Analysis
The Company was started in the year 1996, making the business with the Preventive Care Laboratories. India’s First laboratory automation was happened in Thyrocare. The Founder of this company, Mr. Velumani, Ex-Scientist of BARC, India.
Currently, the Market Cap is around Rs. 3,300 Crore. The Book value is said to be Rs. 75 and the Current Market Price is trading at Rs. 612 per share, which is 8 Times more than the Book value. Promoters holding of 66 Percent and there is no pledging of shares by the Promoters side.
Debt to Equity stands at 0.03, which is a healthy one for the Value Investors. The Interest Coverage Ratio(ICR) is at 140 Times. At the end of September 2019 quarter, the Reserves are Rs. 344 Crore in the Company Balance Sheet.
For the FY2018-19, the Company’s revenue was Rs. 370 Crore and the expenses are Rs. 222 Crore. The PBT was Rs. 147 Crore and the Net Profit was declared as Rs. 95 Crore. The Earning per share(EPS) were also increased in a good pace.
The Compounded Sales growth for the Past 3 years were 16 Percent and 20 Percent in the last 5 years. The Profit growth was 16.50 Percent and 15 Percent for the past 3 years and 5 years respectively. The CAGR of the Share price was up by 11.50 Percent in the past one year, but it was went down by 5 Percent in the last 3 Years.
The Return on Equity stood at 19.50 Percent and 19 Percent for the last 3 years and 5 year respectively. The Return on Capital Employed(ROCE) is good at around 31 Percent. Thyrocare Technologies is a Debt Free company, which provides a good dividend yield in the past earnings.
As per the December 2019 quarterly results, the Sales were at Rs. 98 Crore, Expenses at Rs. 55 Crore and the Net Profit was Rs. 30 Crore. The Company’s earnings and profitability ratio remained stable for the past few years. The Current Market Price(CMP) of this stock is heading towards near the peak.
However the stocks that are in high demand are always trading at the high prices in the Stock Market. Therefore one can take the investing decision by exploring other Fundamental Factors. Short term and Long term liabilities are less than the Company’s Assets. The Company’s Net worth were also favors the Long term Investors.
The Fair value of this stock – Rs. 342 Per Share (DCF Valuation)
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