I am reading Sterling Biotech's financials on moneycontrol.com and wondering, why aren't mutual funds looking at this stock? More so, why aren't research houses tracking this stock?
Here's a company that -
a) Has just delivered Rs. 55 crs in net profits for the quarter ending 31st March 2008.
b) Sales has grown every quarter for the last 5 quarters
c) Both, sales and profits have grown at a 3-year CAGR of 32%
d) Operates at an OPM of 44%
e) Has a NPM of 20%
f) Has about 816 crores of cash/bank in it's books (which is 17.6% of m-cap)
The stock is currently at a 52-week high of around 205 rupees !
Sunday, May 4, 2008
Sterling Biotech
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3 comments:
hi, the stock is at a P/E of 24. does it make sense to purchase it at these levels
cheers
vikram
It has so high debt. and the growth is too less. Check ICSA and then u will realise that growth with high ROCE and ROE is more imp with less debt.
Hi Anonymous,
You'll find this interesting. Look at debt and match it with interest charges.
The secured plus unsecured debt over the years was -
Dec 2002 : 331 crs
Dec 2003 : 378 crs
Dec 2004 : 713 crs
Dec 2005 : 1721 crs
Dec 2006 : 1624 crs
Corresponding interest charges -
2002 : 37 crs
2003 : 49 crs
2004 : 44 crs
2005 : 36 crs
2006 : 41 crs
2007 has been no different .. at 42 crs of interest charge. I find it strange that 1700 crs of debt at just 42 crs of interest charge???
Anyways, I have already posted on ICSA India.
http://scrip-tures.blogspot.com/2008/01/icsa-india.html
Its a good stock to own
Warm Regards
Shankar
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