Why is Deccan Health Care Ltd ?
1
Weak Long Term Fundamental Strength with a -31.80% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 1.56% signifying low profitability per unit of shareholders funds
2
Flat results in Dec 24
- PBDIT(Q) Lowest at Rs 0.59 cr.
- OPERATING PROFIT TO NET SALES (Q) Lowest at 2.89%
- PBT LESS OI(Q) Lowest at Rs 0.20 cr.
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 03-Feb-25 and has generated -29.68% returns since then
- The stocks MACD and KST technical factors are also Bearish
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -28.44% returns in the last 1 year, the stock has also underperformed BSE 500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Drugs)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Deccan Healthcar for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Deccan Healthcar
-28.48%
-0.46
61.36%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
6.20%
EBIT Growth (5y)
-31.80%
EBIT to Interest (avg)
2.05
Debt to EBITDA (avg)
0.60
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.58
Tax Ratio
31.58%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
5.87%
ROCE (avg)
8.09%
ROE (avg)
1.56%
Valuation Key Factors 
Factor
Value
P/E Ratio
36
Industry P/E
33
Price to Book Value
0.42
EV to EBIT
23.36
EV to EBITDA
12.80
EV to Capital Employed
0.42
EV to Sales
0.59
PEG Ratio
0.24
Dividend Yield
NA
ROCE (Latest)
2.41%
ROE (Latest)
1.56%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
Technical Movement
8What is working for the Company
NET SALES(HY)
At Rs 39.25 cr has Grown at 20.66%
-4What is not working for the Company
PBDIT(Q)
Lowest at Rs 0.59 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 2.89%
PBT LESS OI(Q)
Lowest at Rs 0.20 cr.
EPS(Q)
Lowest at Rs 0.06
Loading Valuation Snapshot...
Here's what is working for Deccan Healthcar
Net Sales - Quarterly
Highest at Rs 20.43 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 20.43 cr has Grown at 25.4% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 16.30 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Deccan Healthcar
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 0.59 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 2.89%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 0.20 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.06
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)