Weekly Fin-Fun Newsletter #104

Stock & CE of the Week, Superstar Investor Stocks, Ilya's warning, Richest Family of the world, The untouchables.

Nov 19, 2023

If trading is all about confidence Then your first goal should be to do what keeps you confident: - A + Setups - Focus on the process - Position size correctly Focus 100% on these and your confidence will 10x - Alan Edward

Nifty & Gold is in the bullish zone, Crude & bonds still weak

On the small brick size after a 600 pointer rally, Nifty is in the sell zone, Fresh buys above 19900 levels only

Nifty 50 Breadth remains in the over bought levels

Stock of the Week

Cipla CMP 1249

Cipla is engaged in the Business of Pharmaceuticals.(Source : 202003 Annual Report Page No:157)

KEY POINTS [ edit ]

Market Leadership
Cipla is the 3rd largest pharmaceutical player in India and leader in therapies such as respiratory and urology. It also ranks 2nd in the overall chronic business. It continues to be the 3 rd largest player in the South African private market with 7.5% market share, growing ~4.3% greater than market. ^[1] It is the 2nd largest Indian exporter in emerging markets. ^[2]

Diversified Product portfolio
Co. has a diversified product portfolio of 1,500+ products in 50+ dosage forms and 65 therapeutic categories. ^[3] In FY22, it launched 93 products across the globe. ^[4]

Perks

Company has a negative Cash Conversion Days of -3.69
D/E is 0.02
D/E 0.02 has reduced as compared to last year's D/E 0.04
Free Cash Flow yield is 2.9%
FII have increased their stakes by 0.24% in the latest quarter (25.5% to 25.74%)
Interest Coverage ratio is 37.87
Interest Coverage ratio 37.87 is higher than last year's Interest Coverage Ratio 33.85
Quarterly Profit has grown by 44.88% YoY
Quarterly Profit has grown by 15.98% QoQ
Quarterly Sales has grown by 14.58% YoY
Net Profit Margin (PAT Margin) is 9.17%
Net Profit Margin (PAT Margin) 9.17% has improved as compared to last year's NPM 8.61%
Operating Profit Margin (EBITDA Margin) is 21.93%
Operating Profit Margin (EBITDA Margin) 21.93% has improved as compared to last year's OPM 20.73%
PEG ratio is 1.31
3 Years Profit CAGR is 22.38%
Annual Profit has grown over by 10.78%
Promoters + FIIs + DIIs hold 81.41% in the company
Retail/Public have reduced their stakes by 0.1% in the latest quarter (16.77% to 16.67%)
ROCE is 18.19%
ROCE 18.19% is above the 5 years ROCE average 15.55%
ROCE 18.19% has increased as compared to last year's ROCE 17.24%
ROE is 12.85%
ROE 12.85% is above the 5 years ROE average 12.11%
Retail/Public have reduced their stakes by 6.58% in last 3 years