BSE:526546

Stock Analysis Report

Executive Summary

Choksi Laboratories Limited provides contract testing and analytical services in India and internationally.


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has Choksi Laboratories's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 526546's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

526546

0.6%

IN Professional Services

-0.07%

IN Market


1 Year Return

-31.4%

526546

8.2%

IN Professional Services

9.5%

IN Market

Return vs Industry: 526546 underperformed the Indian Professional Services industry which returned 8.2% over the past year.

Return vs Market: 526546 underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

526546IndustryMarket
7 Day-1.9%0.6%-0.07%
30 Day-9.8%-3.5%-1.3%
90 Day-8.2%10.6%1.9%
1 Year-31.4%-31.4%9.6%8.2%11.5%9.5%
3 Year-45.8%-45.8%61.4%59.0%23.6%16.7%
5 Year-2.1%-2.1%-51.1%-51.4%35.5%22.9%

Price Volatility Vs. Market

How volatile is Choksi Laboratories's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Choksi Laboratories undervalued compared to its fair value and its price relative to the market?

0.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 526546 (₹9.61) is trading above our estimate of fair value (₹2.33)

Significantly Below Fair Value: 526546 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 526546 is unprofitable, so we can't compare its PE Ratio to the Professional Services industry average.

PE vs Market: 526546 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 526546's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 526546 is good value based on its PB Ratio (0.3x) compared to the IN Professional Services industry average (0.8x).


Next Steps

Future Growth

How is Choksi Laboratories forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.4%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Choksi Laboratories has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Choksi Laboratories performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 526546 is currently unprofitable.

Growing Profit Margin: 526546 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 526546 is unprofitable, but has reduced losses over the past 5 years at a rate of 4.7% per year.

Accelerating Growth: Unable to compare 526546's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 526546 is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (6.1%).


Return on Equity

High ROE: 526546 has a negative Return on Equity (-3.07%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Choksi Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: 526546's short term assets (₹166.7M) exceed its short term liabilities (₹115.0M).

Long Term Liabilities: 526546's short term assets (₹166.7M) do not cover its long term liabilities (₹243.3M).


Debt to Equity History and Analysis

Debt Level: 526546's debt to equity ratio (97.7%) is considered high.

Reducing Debt: 526546's debt to equity ratio has increased from 44% to 97.7% over the past 5 years.


Balance Sheet

Inventory Level: 526546 has a high level of physical assets or inventory.

Debt Coverage by Assets: 526546's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 526546 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 526546 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Choksi Laboratories's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 526546's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 526546's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 526546's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 526546's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 526546's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.3yrs

Average board tenure


CEO

Sunil Choksi (64yo)

₹3,960,000

Compensation

Mr. Sunil Kumar Choksi serves as the Chief Executive Officer, Chairman and Managing Director at Choksi Laboratories Ltd and has been its Executive Director since September 01, 2008. 


CEO Compensation Analysis

Compensation vs Market: Sunil's total compensation ($USD55.13K) is about average for companies of similar size in the Indian market ($USD50.06K).

Compensation vs Earnings: Sunil's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Sunil Choksi
CEO, MD & Executive Chairman0yrs₹3.96m13.25% 8.9m
Vyangesh Choksi
CFO & Whole-Time Director15.5yrs₹2.64m6.42% 4.3m
Himika Varma
COO & Whole Time Director3.9yrs₹2.58m0.014% 9.6k
Stela Choksi
Whole-Time Director26.4yrs₹2.59m3.16% 2.1m
Sudarshan Shastri
Independent Non-Executive Director21.1yrs₹32.00k0.0057% 3.8k
N. Mani
Independent Non-Executive Director10.3yrs₹30.00kno data
Mayank Pandey
Independent Additional Director1.8yrsno datano data
Ratnesh Sadoriya
Independent Non-Executive Director1.8yrsno datano data

10.3yrs

Average Tenure

53yo

Average Age

Experienced Board: 526546's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Choksi Laboratories Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Choksi Laboratories Limited
  • Ticker: 526546
  • Exchange: BSE
  • Founded: 1982
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: ₹66.936m
  • Shares outstanding: 6.97m
  • Website: https://www.choksilab.com

Number of Employees


Location

  • Choksi Laboratories Limited
  • 6/3 Manoramaganj
  • Indore
  • Madhya Pradesh
  • 452001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
526546BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005

Biography

Choksi Laboratories Limited provides contract testing and analytical services in India and internationally. The company's contract laboratory services include pharmaceutical, food and beverages, water, and construction material analysis. Its instrument calibration and validation services comprise laboratory and on-site calibration for test equipment, process equipment, and various end-user equipment; plant shutdown calibration; and consultancy for setting up an in-house calibration laboratory. The company also offers environment management, laboratory, waste water management, and air pollution monitoring services. In addition, it provides clinical research services, such as bio-availability and bio-equivalence studies; and consultancy and allied services consisting of training, third-party inspection, auditing, laboratory set-up and management, and environment management services. Further, the company offers assaying and hallmarking services for gold and silver. It primarily serves the pharmaceuticals, consumer products, and engineering sectors. Choksi Laboratories Limited was founded in 1982 and is based in Indore, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:35
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.