I have bought Gennex labs @ 12. Now it is trading low at 4.29. Is it advisable to exit or hold this stock? - Upadhyaya Sreenivasa
Setup in 1995, Gennex Laboratories Limited is a Pharmaceutical Ingredient manufacturing company with its unit located in IDA Bollaram. Gennex is among the leading ‘Vertically Integrated’ pharmaceutical companies in India and has a product portfolio spread over major product segments encompassing expectorants, muscle relaxants, analgesic and anti-fungal. The company has approval from the State Drug Control Authority to manufacture various active pharmaceuticals ingredients. Gennex has a prominent global presence with exports spread across five continents. On the financial front, Alembic Pharmaceutical’s revenue increased 8.8 per cent to ₹ 8.38 Crore in Q1FY18 from ₹ 7.70 crore in Q1FY17. Moreover, the company’s PBDT decreased 27.5 per cent to ₹ 0.58 crore in the first quarter of FY18 vis-à-vis ₹ 0.80 Crore in Q1FY17. The company’s net profit also decreased by 41.66 per cent to ₹ 0.35 rore for the same period. On an annual basis, the company’s revenue increased 9.42 per cent to ₹ 41.91 crore in FY17 compared to the previous fiscal. The company’s PBDT also increased 1.8 per cent to ₹ 3.94 crore in FY17 on a yearly basis. The company’s net profit too increased from ₹ 3.87 crore in FY16 to ₹ 3.94 crore in FY17. Company has a low return on equity of 7.04 per cent for last 3 years. Also the promoter’s stake has decreased. We recommend our investor’s to EXIT the stock.