Vertex Pharmaceuticals Incorporated

Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) is a biotechnology firm based in the United States that researches and develops small-molecule medications to treat acute diseases. For cystic fibrosis, its core medications are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio, and its therapies are still the gold standard of care around the world.

Key Highlights:

• Due to the international launch of KAFTRIO, total revenues climbed by 22.06% to USD 7.57 billion in FY21 (ended December 31, 2021), compared to USD 6.21 billion in FY20.
• However, VRTX's net income fell to USD 2.34 billion in FY21, compared to USD 2.71 billion in FY20.
• The company's cash conversion cycle is still long, at 106.3 days in FY21, compared to the industry norm of 77.3 days.
• Its EBITDA and net margin fell to 38.3% and 30.9% in FY21, respectively, from 47.8% and 43.7% in FY20.
• Stock is currently trading above its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• Stock is leaning towards the higher band of the 52-week range of USD 176.36 to USD 254.93.
• VRTX stock price has surged 23.05% and 14.85% in the past three and six months, respectively.

Conclusion:

Considering the company's robust top line, bottom line stress, deteriorating margins, macroeconomic headwinds, and other technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 230.03, up 0.0043% as of March 01, 2022, at 1:30 PM ET.

Three-Year Technical Price Chart (as of March 01, 2022, at 1:30 PM ET). Source: REFINITIV, Analysis by Kalkine Group

*The reference data in this report has been partly sourced from REFINITIV.

Tata Motors Limited

Tata Motors Limited (NYSE: TTM) is India's commercial vehicle market leader and is one of the top four-passenger vehicle manufacturers. Tata commercial and passenger vehicles are sold worldwide, including Africa, the Middle East, South Asia, South East Asia, South America, and Australia. TTM had 765.83 million American Depositary Shares (ADS) listed and outstanding (each ADS representing Five ordinary shares). 

Key Highlights:

• The company's consolidated revenue from operations is INR 722.29 billion in Q3FY22 (ended December 31, 2021) vs. INR 756.54 billion in Q3FY21.
• TTM reported a consolidated loss of INR 14.51 billion in Q3FY22 compared to a profit of INR 29.41 billion in Q3FY21.
• The company's gross and EBITDA margins expanded sequentially in Q3FY22 to 41.5% and 9.9%, respectively, compared to 39.3% and 7.2% in Q2FY22.
• Stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• Stock is leaning towards the higher-band of the 52-week range of USD 18.48 to USD 35.38.
• TTM stock price has surged 46.60% and 32.40% in the past six and nine months, respectively.

Conclusion:

Considering the substantial decline in topline and bottom-line metrics, incurred losses, an improvement on QoQ basis, and other technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 28.85, down 4.75% as of March 01, 2022, 1:35 PM ET.

Three-Year Technical Price Chart (as of March 01, 2022, at 1:35 PM ET). Source: REFINITIV, Analysis by Kalkine Group

*The reference data in this report has been partly sourced from REFINITIV.