RATING

RECOMMENDATION

Sell

  • Martin and Harris Laboratories
  • ₹1,700.00

  • PLACE ORDER
  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Sell

Business Type

Near Leader

RATING

RECOMMENDATION

Sell

Business Type

Near Leader

  • Martin & Harris Growth

Get detailed information about the Martin and Harris Pre IPO shares. In this research report, you will get to know about Martin & Harris Laboratories Limited Key Ratio data. In addition, get the Complete details about the Net Profit Growth, Revenue Growth and Book Value Growth.

Martin & Harris Revenue Growth

Growth in %

  • 13.11%

    1 Year

  • 23.68%

    3 Year

  • 25.09%

    4 Year

  • The Total revenue for the company has increased from Rs. 297 cr. in FY20 to Rs. 336 cr. in FY21 showcasing a rise of 13% year on year (y-o-y). This increase in the total revenue was  driven by an increase in other income by 471% y-o-y which was contributed by the company's subsidiary Delite infrastructures increased revenue from Rs. 6 cr. in FY20 to Rs. 197 cr. in FY21 because of a short term FTVPL of Rs 155 cr.
  • The operating revenue from pharmaceutical business of Martin and Harris labs has remained constant at Rs 138 cr. in FY21 as compare to Rs.139 cr. in FY21 , were as the future and options revenue for FY21 was nil as compared to Rs 128 cr. in FY20.

Martin & Harris Net Profit Growth(PAT)

Growth in %

  • 1289.73%

    1 Year

  • 56.25%

    2 Year

  • 57.23%

    4 Year

  • The company's PAT for FY21 was Rs.177 cr., compared to Rs. 13 cr. in FY20, showcasing a 1290% growth y-o-y. The significant increase in PAT was primarily owing to a short-term capital gain - FVTPL (Fair Value through Profit and Loss)  from the investing arm of the company of Rs. 155 cr. in FY21
  • The revenue per expense for the company after removing the gain from the investment has increased from 1.044 in FY20 to 1.139 in FY21, whereas if we consider the FVTPL, then it stands at 2.117.
  • The overall expense of the company fell by 44% y-o-y the major reason for this fall was a decrease in Cost of goods sold (COGS) by 60% in FY21, which was driven by the fall in F&O positions of the company from Rs. 118 cr. in FY20 to nil in FY21 as well as the overall operating expense by fell by 65% y-o-y.
  • The 82% decline in PAT of the company in FY20 compared to FY19 was attributable to increased other operating costs and purchases of stock in trade.

Martin & Harris EPS Growth

Growth in %

  • 1289.64%

    1 Year

  • 56.25%

    2 Year

  • 57.23%

    4 Year

The company's EPS grew by 1290% from Rs 32 per share in FY20 to Rs 443 per share in FY21, driven by a 1290% y-o-y growth in net income from Rs. 13 cr. in FY20 to Rs 177 cr. in FY21, this was contributed by the revenues of the subsidiary company. The total outstanding shares for the company remained same as the last year at 3996040. The company has given no commentary regarding its financials that's why the rating for accounting practices is 3 stars.

  • Martin & Harris Book Value Growth

Growth in %

  • 35.73%

    1 Year

  • 27.59%

    2 Year

  • 32.87%

    3 Year

The company's book value has increased at a growth rate of 35.5%, primarily because of increased retained earnings by 67% in FY21 compared to FY20 led by higher net income for FY21 due to increased other incomes and overall operational efficiency. The overall outstanding shares for the company remained the same as compared to FY20.

Martin & Harris EBITDA Growth

Growth in %

  • 764.48%

    1 Year

  • 54.77%

    2 Year

  • 51.24%

    4 Year

The EBITDA of the company grew from Rs. 26 cr. in FY20 to Rs. 225 cr. in FY21 showcasing an increase of 764% y-o-y. This is due to an increased other income of FTVPL from Delite infrastructures the company's subsidiary as well as operational efficiency which was led by a decrease in other operating expenses as well as the cost of goods sold by 65% and 60% respectively in FY21.

Martin & Harris Operating Profit Growth

Growth in %

  • 835.38%

    1 Year

  • 55.02%

    2 Year

  • 51.93%

    4 Year

The EBIT rose to Rs. 221 cr. in FY21 from Rs. 24 cr. in FY20, showcasing an increase of 835%. An increase in operating profit is due to an increased EBITDA  in FY21 due to an increased other income by 471% as the overall depreciation and amortization expense has increased from Rs 2 cr. in FY20 to Rs 3 cr. in F21, which is due to increased fixed assets by Rs. 4 cr. year on year.

Martin & Harris Asset Growth

Growth in %

  • 49.31%

    1 Year

  • 32.25%

    3 Year

  • 28.32%

    4 Year

The significant increase in the asset base of the company in FY21 to INR 461 Cr is primarily because of the increase in non-current investments made by the company on fully paid-up equity shares of Reliance Industries Limited, increased cash balance due to the margin money of Rs. 99 cr. in FY21 and advances paid by the company which are repayable on demand by Rs.194 cr.

Martin & Harris Cash Flow from Operations

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    4 Year

The cash flow from operations for the company has fallen from negative Rs. 22 cr. in FY20 to negative Rs. 170 cr. in FY21 . This fall is due to an increase in other current financial assets by Rs. 190 cr. as well as an sale on gains of assets of Rs.156 cr. in FY21. 

  • Martin & Harris Solvency Ratios

Martin & Harris D/E Ratio

The Debt to Equity ratio of the company has been significantly constant around 0.02 since last three years as the company has not taken any major debt which signifies a very low risk of solvency for the company, the major portion of debt standing in the financial statement of the company is cash credit from banks.

Martin & Harris Current Ratio

The company's current ratio decreased significantly in FY20, owing to an increase in current liabilities-trade payables to various creditors and short-term provisions such as proposed dividends and other expenses payables. However, in FY21, the current ratio increased to 7.42 as the company paid off its trade payables and short-term debt, resulting in a reduction in current liabilities as well as an increase in current assets due to an increase in balance by margin calls as well as the increased other current assets lead to increase.

Martin & Harris Quick Ratio

The company's quick ratio fell to 6.67 in FY21 from 9.91 in FY19, indicating that its liquidity has declined, owing mostly to an increase in current liabilities, particularly trade payables to various creditors. The company is currently reducing its current liabilities by paying off trade payables and short-term loans, while its quick assets, mainly cash and cash equivalents, have increased by Rs. 99 cr. 

Martin & Harris Interest Coverage Ratio

The company's Interest Coverage Ratio is 909.47 in FY21, up from 94.51 in FY20. This is mostly due to the company's profits by 1280 % y-o-y in FY21 than it was in FY20. Since the company has no significant debt, its interest payments are also minimal.

  • Martin & Harris Operating Efficiency

The operating efficiency of the company has increased significantly in FY21 primarily owing to the increase in net profits of the company as there was a short-term capital gain to the company from assets measured at fair value through profit and loss for Rs. 155 cr. This was driven due to the company's subsidiary DELITE Infrastructures the investment arm of Martin and Harris Labs . As well as the company's overall expense has also declined year on year by 44%.

Martin & Harris Operating Profit EBIT Margin(OPM)

Martin & Harris Profit Before Tax Margin (PBT Margin)

Martin & Harris Profit After Tax Margin (PAT Margin)

  • Martin & Harris Profitablity Ratio

Martin & Harris Return on Equity(RoE)

ROE of the company in FY21 has witnessed a growth of  926% in FY21 from FY20. As per Dupont Analysis, the net income margin drove an overall increase in the ROE. Net income margin has witnessed a growth of  2115% in FY21 from FY20, the reason being the increase in revenue due to other income of by Rs.139 cr. flown in the P&L by the company's subsidiary.  Overall, the equity multiplier has remained stable over the FY21 from FY20, whereas the asset turnover has fallen by 53% due to a significant increase in profit in comparison to the increase in the overall assets.

Martin & Harris Return on Capital Employed(RoCE)

The company's return on capital employed has increased from 8.9% in FY20 to 61.8% in FY21, mostly due to increased profits for FY21 by Rs.165 cr. due to income from short-term capital gains of Rs. 155 Cr.

Martin & Harris Return to Assets (RoA)

ROA of Martin and Harris Labs has seen a 950% rise y-o-y. The reason for this rise is the increase in the net income of the company due to a significant increase in other incomes for the company year on year. Also, the cash and cash equivalents, as well as the other current liabilities, increased by Rs 99 cr. and Rs 199 cr. respectively.

  • Martin & Harris Valuation Ratios

Martin & Harris Dividend Yield

Martin & Harris Earning Yield