Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: | NSE:

Beta Drugs Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:24 pm

Market Cap 1,906 Cr.
Current Price 1,983
High / Low2,326/1,060
Stock P/E46.5
Book Value 188
Dividend Yield0.00 %
ROCE32.8 %
ROE26.0 %
Face Value 10.0
PEG Ratio1.50

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Beta Drugs Ltd

Competitors of Beta Drugs Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,465 Cr. 318390/10865.7 20.50.21 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 59.8 Cr. 80.694.9/25.822.9 11.90.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 28.0 Cr. 19.119.5/8.3536.3 6.640.00 %4.06 %3.33 % 10.0
Godavari Drugs Ltd 85.5 Cr. 114155/87.012.8 55.40.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 13,221 Cr. 1,0801,335/62031.2 2072.08 %28.1 %21.1 % 2.00
Industry Average15,004.70N/A43.76N/AN/A16.2516.45N/A

All Competitor Stocks of Beta Drugs Ltd

Quarterly Result

MonthSep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023Mar 2024
Sales474451658896112115141154
Expenses3736415168738688108127
Operating Profit981114202327263327
OPM %20%19%21%22%23%24%24%23%23%18%
Other Income0000000011
Interest1211111111
Depreciation2234345654
Profit before tax7579161821202722
Tax %27%14%21%30%28%27%25%25%25%25%
Net Profit5457121316152017
EPS in Rs5.334.465.396.8012.2213.6116.4715.4820.6717.23

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales516691116184227296
Expenses41547391141174236
Operating Profit9121825435360
OPM %19%18%20%21%23%23%20%
Other Income0000111
Interest1132223
Depreciation234771010
Profit before tax781216344149
Tax %1%-2%21%27%28%25%25%
Net Profit78912253136
EPS in Rs7.829.309.8012.1925.8331.9537.90
Dividend Payout %0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)14.29%12.50%33.33%108.33%24.00%16.13%
Change in YoY Net Profit Growth (%)0.00%-1.79%20.83%75.00%-84.33%-7.87%

Beta Drugs Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2018-2019 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:35%
3 Years:37%
TTM:31%
Compounded Profit Growth
10 Years:%
5 Years:35%
3 Years:46%
TTM:18%
Stock Price CAGR
10 Years:%
5 Years:91%
3 Years:60%
1 Year:77%
Return on Equity
10 Years:%
5 Years:26%
3 Years:28%
Last Year:26%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:36 am

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital99101010101010
Reserves2432485983113148171
Borrowings820231721201519
Other Liabilities922283145558295
Total Liabilities5083107118158198254295
Fixed Assets1318444055636566
CWIP115030000
Investments00011100
Other Assets35506374102135190229
Total Assets5083107118158198254295

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +170819302331
Cash from Investing Activity +-11-21-15-6-22-19-14
Cash from Financing Activity +5129-8-1-2-7
Net Cash Flow12-925729

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow1.00-8.00-5.008.0022.0033.0045.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days10413912810690101
Inventory Days3710410210087106
Days Payable81143119127123139
Cash Conversion Cycle60100111795368
Working Capital Days7510095887088
ROCE %18%21%22%36%34%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters66.68%66.71%66.71%66.71%66.71%66.71%66.73%66.73%66.73%66.73%66.73%66.73%
FIIs0.00%0.00%0.00%0.00%0.29%0.29%0.29%0.29%0.32%0.32%0.32%0.90%
DIIs0.28%0.29%0.29%0.29%0.04%0.04%0.04%0.04%0.02%0.02%0.06%0.12%
Public33.03%33.01%33.00%33.00%32.96%32.96%32.94%32.93%32.93%32.92%32.87%32.25%
No. of Shareholders5426757621,2961,4071,4441,4241,4511,7221,9282,1162,323

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)37.9031.9525.8212.209.93
Diluted EPS (Rs.)37.9031.9525.8212.209.93
Cash EPS (Rs.)48.0842.7833.3719.3413.70
Book Value[Excl.RevalReserv]/Share (Rs.)163.43127.8296.0571.3759.41
Book Value[Incl.RevalReserv]/Share (Rs.)163.43127.8296.0571.3759.41
Revenue From Operations / Share (Rs.)307.59236.24191.22120.7994.45
PBDIT / Share (Rs.)63.8256.0545.2026.2619.05
PBIT / Share (Rs.)53.6545.2237.6519.1115.14
PBT / Share (Rs.)50.7142.7035.6816.5912.45
Net Profit / Share (Rs.)37.9031.9525.8212.209.79
NP After MI And SOA / Share (Rs.)37.9031.9525.8212.209.79
PBDIT Margin (%)20.7423.7223.6321.7320.17
PBIT Margin (%)17.4419.1419.6915.8116.03
PBT Margin (%)16.4818.0718.6513.7313.18
Net Profit Margin (%)12.3213.5213.5010.0910.36
NP After MI And SOA Margin (%)12.3213.5213.5010.0910.36
Return on Networth / Equity (%)23.1924.9926.8817.0816.48
Return on Capital Employeed (%)30.4332.1033.2422.0920.65
Return On Assets (%)14.3315.4815.729.978.78
Long Term Debt / Equity (X)0.030.050.120.160.17
Total Debt / Equity (X)0.060.130.170.210.34
Asset Turnover Ratio (%)1.311.271.090.820.79
Current Ratio (X)2.102.031.981.991.53
Quick Ratio (X)1.511.541.521.531.19
Inventory Turnover Ratio (X)4.174.165.704.474.43
Interest Coverage Ratio (X)21.7622.3122.8810.437.08
Interest Coverage Ratio (Post Tax) (X)13.9213.7214.075.854.64
Enterprise Value (Cr.)1168.47599.62542.92119.6152.99
EV / Net Operating Revenue (X)3.952.642.951.030.58
EV / EBITDA (X)19.0411.1312.494.742.89
MarketCap / Net Operating Revenue (X)4.012.652.960.990.42
Price / BV (X)7.554.905.891.680.67
Price / Net Operating Revenue (X)4.012.652.960.990.42
EarningsYield0.030.050.040.100.24

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Beta Drugs Ltd as of November 22, 2024 is: 2,318.38

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, Beta Drugs Ltd is Undervalued by 16.91% compared to the current share price 1,983.00

Intrinsic Value of Beta Drugs Ltd as of November 22, 2024 is: 3,038.56

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, Beta Drugs Ltd is Undervalued by 53.23% compared to the current share price 1,983.00

Last 5 Year EPS CAGR: 31.06%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 18.71%, which is a positive sign.
  2. The company has higher reserves (84.75 cr) compared to borrowings (17.88 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (147.29 cr) and profit (23.86 cr) over the years.
  1. The stock has a high average Working Capital Days of 73.71, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 67.29, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Beta Drugs Ltd:
    1. Net Profit Margin: 12.32%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 30.43% (Industry Average ROCE: 16.25%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 23.19% (Industry Average ROE: 16.45%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 13.92
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.51
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 46.5 (Industry average Stock P/E: 43.76)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.06
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Beta Drugs Ltd. is a Public Limited Listed company incorporated on 21/09/2015 and has its registered office in the State of Himachal Pradesh, India. Company’s Corporate Identification Number(CIN) is L24230HP2005PLC028969 and registration number is 028969. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 124.85 Cr. and Equity Capital is Rs. 9.61 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsVillage Nandpur, Baddi Himachal Pradesh 174101cs@betadrugslimited.com
http://www.betadrugslimited.com
Management
NamePosition Held
Mr. Rahul BatraChairperson & Managing Director
Mr. Varun BatraJoint Managing Director
Mrs. Seema ChopraWhole Time Director
Mr. Balwant SinghWhole Time Director
Mr. Manmohan KhannaIndependent Director
Mr. Ashutosh ShuklaWhole Time Director
Mr. Rohit PartiIndependent Director

FAQ

What is the latest intrinsic value of Beta Drugs Ltd?

The latest intrinsic value of Beta Drugs Ltd as on 21 November 2024 is ₹2318.38, which is 16.91% higher than the current market price of ₹1,983.00.

What is the Market Cap of Beta Drugs Ltd?

The Market Cap of Beta Drugs Ltd is 1,906 Cr..

What is the current Stock Price of Beta Drugs Ltd as on 21 November 2024?

The current stock price of Beta Drugs Ltd as on 21 November 2024 is ₹1,983.

What is the High / Low of Beta Drugs Ltd stocks in FY 2024?

In FY 2024, the High / Low of Beta Drugs Ltd stocks is 2,326/1,060.

What is the Stock P/E of Beta Drugs Ltd?

The Stock P/E of Beta Drugs Ltd is 46.5.

What is the Book Value of Beta Drugs Ltd?

The Book Value of Beta Drugs Ltd is 188.

What is the Dividend Yield of Beta Drugs Ltd?

The Dividend Yield of Beta Drugs Ltd is 0.00 %.

What is the ROCE of Beta Drugs Ltd?

The ROCE of Beta Drugs Ltd is 32.8 %.

What is the ROE of Beta Drugs Ltd?

The ROE of Beta Drugs Ltd is 26.0 %.

What is the Face Value of Beta Drugs Ltd?

The Face Value of Beta Drugs Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Beta Drugs Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE