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What to decide between Supriya Lifescience and Divis Lab

Discussion in 'Technical Analysis' started by laveshdixit, Sep 27, 2022.

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  1. laveshdixit

    laveshdixit Responder

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    I would like to explore the option of buying one of the above stocks.

    Supriya - small cap
    MCAP 2600
    EPS 19
    PE 17
    PB 4
    FV 2
    ROE 34
    ROCE 43
    Shareholding 68%

    2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
    Net Sales 92 113 138 171 184 213 278 312 391 530
    PAT 5 6 8 6 6 9 39 73 124 152

    Consistent growth in Sales and Profits.
    Sales growth 5 years - 24%

    38 API products, and a lot in pipeline. Valuation decreased a lot in last 2 quarters, after significant margin pressure.

    Divis Lab - Large Cap
    MCAP 97000
    EPS 117
    PE 31
    PB 7.8
    FV 2
    ROE 28
    ROCE 35
    Shareholding 52%

    2014 2015 2016 2017 2018 2019 2020 2021 2022
    Net Sales 2,532 3,115 3,776 4,064 3,891 4,946 5,394 6,969 8,960
    PAT 773 852 1,126 1,060 877 1,353 1,377 1,984 2,960

    Sales growth 5 years - 17%
    Large API developer in 10 Generics.
    Low interest

    My preference is Supriya, since it is a small cap and can grow very fast, and it execution is good.
    But Divi's has consistently showed its top performance, but will it be able to grow further, and keep going.

    How do I decide which one to choose between the two?

    @shabbir
     
    laveshdixit, Sep 27, 2022
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  2. shabbir

    shabbir Administrator Staff Member

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    If you think Divis will have growth challenges then Supriya is better choice but not otherwise.

    I think DIVIs will continue to grow at 20%+ profit growth. Profit growth is more important than sales growth.

    Supriya, still, has some time left to prove it can keep growing earnings. Untested I would say as yet but looks promising.
     
    shabbir, Sep 27, 2022
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  3. laveshdixit

    laveshdixit Responder

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    As we were discussing this, Supriya's CEO resigned, and the stock fell 6%. We cannot anticipate such news and such sharp falls.
    I will further evaluate between these companies, but may be my preference would be for the one which has already done it before.
     
    laveshdixit, Sep 28, 2022
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  4. shabbir

    shabbir Administrator Staff Member

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    Perfect timing of resignation.
    The preference should be the safety with future growth.
     
    shabbir, Sep 28, 2022
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  5. emailsaravanans

    emailsaravanans Active Member

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    @shabbir what is you take on supriya as of now? Is it a time for more accumulation to supriya or should we shift to divis?
     
    emailsaravanans, Sep 30, 2022
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  6. shabbir

    shabbir Administrator Staff Member

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    Businesswise I am not seeing any changes in Supriya but I am still trying to study what will be an impact of CEO change. I will prefer wait and watch as of now.
     
    shabbir, Sep 30, 2022
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