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Last Updated on: 19 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 543594 | NSE: DPL

Dipna Pharmachem Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 19, 2024, 5:42 pm

Market Cap 16.2 Cr.
Current Price 6.75
High / Low14.5/6.40
Stock P/E14.9
Book Value 15.6
Dividend Yield0.00 %
ROCE7.05 %
ROE3.52 %
Face Value 10.0
PEG Ratio-0.37

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

View Share Price Target for Dipna Pharmachem Ltd

Competitors of Dipna Pharmachem Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,574 Cr. 328390/10867.8 20.50.20 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 61.0 Cr. 82.294.9/25.823.4 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 86.3 Cr. 115155/87.012.9 55.40.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 13,185 Cr. 1,0771,335/62031.1 2072.09 %28.1 %21.1 % 2.00
Industry Average15,044.04N/A43.90N/AN/A16.2516.45N/A

All Competitor Stocks of Dipna Pharmachem Ltd

Quarterly Result

MonthSep 2021Mar 2022Sep 2022Mar 2023Sep 2023Mar 2024
Sales294449747490
Expenses284248737388
Operating Profit111222
OPM %3%3%2%2%2%2%
Other Income000000
Interest000111
Depreciation000000
Profit before tax010111
Tax %25%26%26%27%27%21%
Net Profit010110
EPS in Rs33.0084.000.130.240.240.20

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1720303173100164
Expenses162030317198161
Operating Profit0000223
OPM %2%2%1%1%3%2%2%
Other Income0000000
Interest0000112
Depreciation0000000
Profit before tax0000211
Tax %14%40%0%60%26%34%24%
Net Profit0000111
EPS in Rs6.003.006.002.00117.000.370.45
Dividend Payout %0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2022-20232023-2024
YoY Net Profit Growth (%)0.00%0.00%
Change in YoY Net Profit Growth (%)0.00%0.00%

Dipna Pharmachem Ltd has shown a consistent positive trend in YoY Net Profit Growth (%) in the last 2 years from 2022-2023 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:52%
3 Years:74%
TTM:64%
Compounded Profit Growth
10 Years:%
5 Years:105%
3 Years:279%
TTM:20%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:-36%
Return on Equity
10 Years:%
5 Years:7%
3 Years:7%
Last Year:4%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 4:38 pm

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital0.040.040.040.040.041224
Reserves001121213
Borrowings561012101619
Other Liabilities68812243776
Total Liabilities111418253678133
Fixed Assets0000000
CWIP-0-0-0-0-0-0-0
Investments-0-0-0-0-0-0-0
Other Assets111418253678133
Total Assets111418253678133

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-3-23-21-5
Cash from Investing Activity +00-0-0-0
Cash from Financing Activity +32-32614
Net Cash Flow00-058

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-5.00-6.00-10.00-12.00-8.00-14.00-16.00

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 Days13216013417613510469
Inventory Days112667089347286
Days Payable142148105145123139172
Cash Conversion Cycle10378991204638-17
Working Capital Days1161141191505912696
ROCE %8%5%3%17%9%7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2022Mar 2023Sep 2023Mar 2024
Promoters66.56%66.56%57.19%9.98%
Public33.45%33.43%42.81%90.02%
No. of Shareholders1,1109921,0781,807

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.)0.90260.55333.406.9116.86
Diluted EPS (Rs.)0.90260.55333.406.9116.86
Cash EPS (Rs.)0.450.77335.178.9719.37
Book Value[Excl.RevalReserv]/Share (Rs.)15.6020.35496.74163.34156.41
Book Value[Incl.RevalReserv]/Share (Rs.)15.6020.35496.74163.34156.41
Revenue From Operations / Share (Rs.)68.3483.4820787.268857.118725.29
PBDIT / Share (Rs.)1.431.96644.23118.6692.26
PBIT / Share (Rs.)1.421.95642.46116.6089.75
PBT / Share (Rs.)0.591.15449.8015.7117.15
Net Profit / Share (Rs.)0.450.76333.406.9116.86
PBDIT Margin (%)2.082.353.091.331.05
PBIT Margin (%)2.072.333.091.311.02
PBT Margin (%)0.861.382.160.170.19
Net Profit Margin (%)0.660.911.600.070.19
Return on Networth / Equity (%)2.893.7467.114.2310.78
Return on Capital Employeed (%)6.826.0644.399.5857.38
Return On Assets (%)0.811.173.220.090.32
Long Term Debt / Equity (X)0.330.581.916.440.00
Total Debt / Equity (X)0.510.655.8621.7417.45
Asset Turnover Ratio (%)1.561.762.381.431.88
Current Ratio (X)1.601.991.161.211.03
Quick Ratio (X)1.151.500.950.850.71
Inventory Turnover Ratio (X)0.000.0010.034.900.00
Interest Coverage Ratio (X)1.722.463.341.181.27
Interest Coverage Ratio (Post Tax) (X)1.541.952.731.071.23
Enterprise Value (Cr.)28.2225.240.000.000.00
EV / Net Operating Revenue (X)0.170.250.000.000.00
EV / EBITDA (X)8.2210.740.000.000.00
MarketCap / Net Operating Revenue (X)0.130.150.000.000.00
Price / BV (X)0.600.610.000.000.00
Price / Net Operating Revenue (X)0.130.150.000.000.00
EarningsYield0.040.060.000.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Dipna Pharmachem Ltd as of November 19, 2024 is: 8.35

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 19, 2024, Dipna Pharmachem Ltd is Undervalued by 23.70% compared to the current share price 6.75

Intrinsic Value of Dipna Pharmachem Ltd as of November 19, 2024 is: 4.97

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 19, 2024, Dipna Pharmachem Ltd is Overvalued by 26.37% compared to the current share price 6.75

Last 5 Year EPS CAGR: -40.43%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (62.14 cr) and profit (0.57 cr) over the years.
  1. The stock has a low average ROCE of 7.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 111.43, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 66.71, which may not be favorable.
  4. The company has higher borrowings (11.14) compared to reserves (4.14), which may suggest financial risk.

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 Dipna Pharmachem Ltd:
    1. Net Profit Margin: 0.66%
      • 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: 6.82% (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%: 2.89% (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): 1.54
      • 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: 1.15
      • 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: 14.9 (Industry average Stock P/E: 43.9)
      • 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: 0.51
      • 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

Dipna Pharmachem Ltd. is a Public Limited Listed company incorporated on 19/07/2011 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24100GJ2011PLC066400 and registration number is 066400. Currently company belongs to the Industry of Pharmaceuticals. Company’s Total Operating Revenue is Rs. 72.76 Cr. and Equity Capital is Rs. 0.04 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsA/211, Siddhi Vinayak Complex, Near D.A.V. School, Makarba, Ahmedabad Gujarat 380055info@dipnapharmachem.com
http://www.dipnapharmachem.com
Management
NamePosition Held
Mr. Keyur Dipakkumar ShahManaging Director
Ms. Dipna Keyur ShahNon Executive Director
Mr. Nandish Shaileshbhai JaniIndependent Director
Mr. Jitendra Pradipbhai ParmarIndependent Director

FAQ

What is the latest intrinsic value of Dipna Pharmachem Ltd?

The latest intrinsic value of Dipna Pharmachem Ltd as on 19 November 2024 is ₹8.35, which is 23.70% higher than the current market price of ₹6.75.

What is the Market Cap of Dipna Pharmachem Ltd?

The Market Cap of Dipna Pharmachem Ltd is 16.2 Cr..

What is the current Stock Price of Dipna Pharmachem Ltd as on 19 November 2024?

The current stock price of Dipna Pharmachem Ltd as on 19 November 2024 is ₹6.75.

What is the High / Low of Dipna Pharmachem Ltd stocks in FY 2024?

In FY 2024, the High / Low of Dipna Pharmachem Ltd stocks is 14.5/6.40.

What is the Stock P/E of Dipna Pharmachem Ltd?

The Stock P/E of Dipna Pharmachem Ltd is 14.9.

What is the Book Value of Dipna Pharmachem Ltd?

The Book Value of Dipna Pharmachem Ltd is 15.6.

What is the Dividend Yield of Dipna Pharmachem Ltd?

The Dividend Yield of Dipna Pharmachem Ltd is 0.00 %.

What is the ROCE of Dipna Pharmachem Ltd?

The ROCE of Dipna Pharmachem Ltd is 7.05 %.

What is the ROE of Dipna Pharmachem Ltd?

The ROE of Dipna Pharmachem Ltd is 3.52 %.

What is the Face Value of Dipna Pharmachem Ltd?

The Face Value of Dipna Pharmachem 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 Dipna Pharmachem 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