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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: | NSE:

Fundamental Analysis of Sakar Healthcare Ltd

About the Company - Sakar Healthcare Ltd

Sakar Healthcare Ltd. is a Public Limited Listed company incorporated on 26/03/2004 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24231GJ2004PLC043861 and registration number is 043861. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 128.23 Cr. and Equity Capital is Rs. 17.12 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Hospitals & Medical ServicesBlock No. 10/13, Village: Changodar, Ahmedabad District Gujarat 382213cs@sakarhealthcare.com
http://www.sakarhealthcare.com
Management
NamePosition Held
Mr. Sanjay S ShahChairman & Managing Director
Mr. Aarsh S ShahJoint Managing Director
Ms. Rita S ShahWhole Time Director
Mr. Shailesh B PatelIndependent Director
Mr. Prashant C SrivastavIndependent Director
Mr. Hemendra C ShahIndependent Director

Sakar Healthcare Ltd. Share Price Update

Share PriceValue
Today₹428.05
Previous Day₹421.45

Basic Stock Data of Sakar Healthcare Ltd

Market Cap 829 Cr.
Current Price 381
High / Low479/191
Stock P/E66.4
Book Value 109
Dividend Yield0.00 %
ROCE8.91 %
ROE8.49 %
Face Value 10.0

Data Source: screener.in

Competitors of Sakar Healthcare Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Max Healthcare Institute Ltd 81,777 Cr. 841910/41277.4 80.70.12 %15.0 %16.1 % 10.0
Shalby Ltd 3,187 Cr. 295340/11439.2 89.20.41 %10.6 %7.37 % 10.0
Metropolis Healthcare Ltd 8,726 Cr. 1,7031,831/1,17169.9 2040.46 %17.4 %15.2 % 2.00
Thyrocare Technologies Ltd 3,398 Cr. 642695/41555.0 89.22.80 %15.3 %10.6 % 10.0
Max India Ltd 899 Cr. 208234/76.0 1230.00 %0.53 %1.81 % 10.0
Industry Average19,597.40 Cr737.8048.30117.220.76%11.77%10.22%8.40

Sakar Healthcare Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales26.1226.7921.6830.2631.6429.7436.5928.5330.7133.4740.6538.9934.08
Expenses19.1322.9314.6123.7724.5523.0927.4120.5722.1224.6732.8729.9624.72
Operating Profit6.993.867.076.497.096.659.187.968.598.807.789.039.36
OPM %26.76%14.41%32.61%21.45%22.41%22.36%25.09%27.90%27.97%26.29%19.14%23.16%27.46%
Other Income0.260.270.410.270.750.270.880.410.601.851.811.520.66
Interest0.610.800.430.490.790.940.680.860.991.942.152.081.65
Depreciation1.121.084.822.181.682.623.193.573.774.103.554.524.22
Profit before tax5.522.252.234.095.373.366.193.944.434.613.893.954.15
Tax %17.57%20.44%22.42%10.51%54.19%96.43%-45.56%26.90%56.21%13.02%-0.77%28.10%12.53%
Net Profit4.561.801.743.652.460.119.012.881.944.013.922.843.64
EPS in Rs3.051.201.112.131.440.065.261.681.042.152.061.491.70

Sakar Healthcare Ltd Quarterly Chart

Sakar Healthcare Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales16223035414453688395128133151
Expenses914222733344051637299100116
Operating Profit788881013172023293335
OPM %43%34%26%22%20%23%24%25%24%24%23%25%23%
Other Income0000010121244
Interest4443333222368
Depreciation2222334678101517
Profit before tax122235691213191715
Tax %32%19%13%24%22%30%38%28%21%19%20%24%
Net Profit112223471011151312
EPS in Rs1.241.812.192.302.783.083.124.476.436.848.906.706.20
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Sakar Healthcare Ltd Profit & Loss Yearly Chart

Sakar Healthcare Ltd Growth

Compounded Sales Growth
10 Years:20%
5 Years:20%
3 Years:17%
TTM:17%
Compounded Profit Growth
10 Years:24%
5 Years:27%
3 Years:10%
TTM:-30%
Stock Price CAGR
10 Years:%
5 Years:49%
3 Years:60%
1 Year:64%
Return on Equity
10 Years:11%
5 Years:11%
3 Years:11%
Last Year:8%

Sakar Healthcare Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital888881112151516171921
Reserves3467112535576683110154216
Borrowings322724252224111117439311968
Other Liabilities8111411101123151737474452
Total Liabilities5150525051718197115178268336357
Fixed Assets37373836374953646669205267275
CWIP000000091349168
Investments0000000000730
Other Assets14131414142228253660556075
Total Assets5150525051718197115178268336357

Sakar Healthcare Ltd Reserves and Borrowings Chart

Sakar Healthcare Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 117949251619153633
Cash from Investing Activity -4-3-3-1-4-14-8-25-22-47-90-74
Cash from Financing Activity -4-7-6-3-613-1393325541
Net Cash Flow3-4-01-10-160-0-0-00

Sakar Healthcare Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days252228212644745136484060
Inventory Days3982811901421071145170921126976
Days Payable11810997206651574146141149129
Cash Conversion Cycle3051941201436710768808319-397
Working Capital Days19415575894511010846418230
ROCE %12%14%15%14%14%15%15%16%16%13%12%9%

Sakar Healthcare Ltd Financial Efficiency Indicators Chart

Sakar Healthcare Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters74.02%67.54%67.54%67.54%67.54%67.54%62.10%62.10%60.72%60.72%54.15%53.15%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%16.12%16.12%15.74%15.74%14.03%13.76%
DIIs0.00%8.76%8.76%8.76%8.76%8.76%0.55%0.33%0.00%0.00%10.82%10.62%
Public25.97%23.70%23.70%23.70%23.70%23.70%21.24%21.45%23.54%23.54%21.00%22.47%
No. of Shareholders1,8074,6046,4816,5426,7026,0915,6786,2106,3226,0567,2997,001

Sakar Healthcare Ltd Shareholding Pattern Chart

No. of Sakar Healthcare Ltd Shareholders

This stock is not held by any mutual fund

Sakar Healthcare Ltd ROCE Trend

Sakar Healthcare Ltd EPS Trend

Sakar Healthcare Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.00
Basic EPS (Rs.)6.758.736.846.43
Diluted EPS (Rs.)6.758.736.846.43
Cash EPS (Rs.)14.5714.5212.0011.16
Book Value[Excl.RevalReserv]/Share (Rs.)91.0474.4663.0454.35
Book Value[Incl.RevalReserv]/Share (Rs.)91.0474.4663.0454.35
Revenue From Operations / Share (Rs.)70.0474.9160.6655.46
PBDIT / Share (Rs.)19.8618.4015.2214.41
PBIT / Share (Rs.)11.9912.7510.069.68
PBT / Share (Rs.)8.8711.068.478.17
Net Profit / Share (Rs.)6.708.876.846.43
NP After MI And SOA / Share (Rs.)6.708.876.846.43
PBDIT Margin (%)28.3524.5625.0925.98
PBIT Margin (%)17.1117.0216.5817.44
PBT Margin (%)12.6514.7613.9614.73
Net Profit Margin (%)9.5611.8311.2711.59
NP After MI And SOA Margin (%)9.5611.8311.2711.59
Return on Networth / Equity (%)7.3611.9010.8511.83
Return on Capital Employeed (%)8.109.8710.8714.35
Return On Assets (%)3.795.666.008.36
Long Term Debt / Equity (X)0.560.660.390.15
Total Debt / Equity (X)0.640.700.400.18
Asset Turnover Ratio (%)0.440.570.640.00
Current Ratio (X)1.031.071.011.52
Quick Ratio (X)0.740.760.540.75
Interest Coverage Ratio (X)6.3610.879.589.57
Interest Coverage Ratio (Post Tax) (X)3.156.245.305.27
Enterprise Value (Cr.)493.09320.85216.7089.08
EV / Net Operating Revenue (X)3.702.502.291.07
EV / EBITDA (X)13.0410.199.124.13
MarketCap / Net Operating Revenue (X)2.861.801.860.90
Price / BV (X)2.201.811.790.91
Price / Net Operating Revenue (X)2.861.801.860.90
EarningsYield0.030.060.060.12

Sakar Healthcare Ltd Profitability Ratios (%)

Sakar Healthcare Ltd Liquidity Ratios

Sakar Healthcare Ltd Liquidity Ratios (%)

Sakar Healthcare Ltd Interest Coverage Ratios (X)

Sakar Healthcare Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sakar Healthcare Ltd

Fair Value: ₹626.76

The stock is undervalued by 64.50% compared to the current price ₹381

*Investments are subject to market risks

Strength and Weakness of Sakar Healthcare Ltd

StrengthWeakness
  1. The company has higher reserves (59.77 cr) compared to borrowings (39.69 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (69.15 cr) and profit (8.15 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 11.12 and average Dividend Yield of 17.04%.
  2. The stock has a low average ROCE of 13.75%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 75.25, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 96.17, which may not be favorable.

Should I Buy Sakar Healthcare Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sakar Healthcare Ltd:
    1. Net Profit Margin: 9.56%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 8.10% (Industry Average ROCE: 13.57%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 3.15
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.74
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 66.4 (Industry average Stock P/E: 43.02)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.64
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sakar Healthcare Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE