Fermenta Biotech Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 12:59 am

Market Cap	1,130 Cr.
Current Price	384
High / Low	440/145
Stock P/E	138
Book Value	98.6
Dividend Yield	0.33 %
ROCE	3.20 %
ROE	5.59 %
Face Value	5.00
PEG Ratio	-2.86

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Gujarat Themis Biosyn Ltd	3,354 Cr.	308	390/128	63.6	20.5	0.22 %	45.0 %	33.8 %	1.00
Gujarat Terce Laboratories Ltd	62.6 Cr.	84.4	94.9/26.6	24.0	11.9	0.00 %	9.72 %	3.44 %	10.0
Gujarat Inject (Kerala) Ltd	35.9 Cr.	24.5	24.5/8.74	46.6	6.64	0.00 %	2.65 %	2.08 %	10.0
Godavari Drugs Ltd	86.7 Cr.	115	155/87.0	13.0	55.4	0.00 %	14.4 %	15.5 %	10.0
Glenmark Life Sciences Ltd	12,416 Cr.	1,013	1,335/645	29.3	207	2.22 %	28.1 %	21.1 %	2.00
Industry Average	19,016.52 Cr	1,181.31		56.05	186.30	0.32%	16.20%	16.32%	6.27

All Competitor Stocks of

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	109.65	99.85	92.86	96.16	91.89	98.03	54.86	105.16	82.45	56.91	98.97	97.34	78.13
Expenses	83.87	84.14	90.65	78.40	86.99	94.75	64.68	85.87	71.52	70.82	73.84	91.96	77.33
Operating Profit	25.78	15.71	2.21	17.76	4.90	3.28	-9.82	19.29	10.93	-13.91	25.13	5.38	0.80
OPM %	23.51%	15.73%	2.38%	18.47%	5.33%	3.35%	-17.90%	18.34%	13.26%	-24.44%	25.39%	5.53%	1.02%
Other Income	1.82	2.27	1.16	2.88	3.84	2.69	-19.41	-7.91	2.01	-5.53	2.52	5.38	2.82
Interest	4.14	4.42	4.10	4.43	4.47	4.86	5.14	6.31	4.78	3.69	5.19	3.39	3.43
Depreciation	5.95	6.44	6.68	6.49	6.67	9.07	6.32	6.19	5.95	5.93	6.38	6.46	6.12
Profit before tax	17.51	7.12	-7.41	9.72	-2.40	-7.96	-40.69	-1.12	2.21	-29.06	16.08	0.91	-5.93
Tax %	34.04%	41.85%	12.69%	20.58%	8.33%	6.28%	-7.50%	373.21%	0.00%	0.00%	37.81%	884.62%	0.00%
Net Profit	11.54	4.14	-8.34	7.72	-2.59	-8.46	-37.64	-5.29	2.21	-29.07	9.99	-7.14	-5.93
EPS in Rs	3.84	1.53	-2.73	2.61	-0.88	-2.75	-12.70	-1.40	0.62	-9.70	3.35	-2.36	-1.98

Last Updated: October 7, 2024, 8:05 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	117	139	142	155	164	302	403	292	376	397	349	335	331
Expenses	94	113	126	134	152	209	248	225	293	335	330	307	314
Operating Profit	23	26	16	21	12	93	156	66	83	62	18	28	17
OPM %	20%	19%	11%	13%	7%	31%	39%	23%	22%	16%	5%	8%	5%
Other Income	2	3	0	1	3	9	6	12	8	8	-20	4	5
Interest	5	5	4	6	10	14	21	20	19	18	21	17	16
Depreciation	9	10	9	8	10	12	12	15	20	26	28	25	25
Profit before tax	10	14	3	7	-6	76	129	43	52	27	-51	-10	-18
Tax %	36%	24%	67%	61%	49%	28%	8%	-37%	18%	44%	4%	143%
Net Profit	4	10	1	2	-9	46	117	60	43	15	-53	-24	-32
EPS in Rs	1.51	2.86	0.17	-0.41	-4.14	12.21	42.71	20.23	15.46	5.25	-17.36	-7.84	-10.69
Dividend Payout %	124%	29%	249%	-51%	-5%	2%	1%	24%	16%	23%	-7%	-16%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	150.00%	-90.00%	100.00%	-550.00%	611.11%	154.35%	-48.72%	-28.33%	-65.12%	-453.33%	54.72%
Change in YoY Net Profit Growth (%)	0.00%	-240.00%	190.00%	-650.00%	1161.11%	-456.76%	-203.07%	20.38%	-36.78%	-388.22%	508.05%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	9%
5 Years:	-4%
3 Years:	-4%
TTM:	23%

Compounded Profit Growth
10 Years:	%
5 Years:	%
3 Years:	%
TTM:	122%

Stock Price CAGR
10 Years:	22%
5 Years:	11%
3 Years:	11%
1 Year:	156%

Return on Equity
10 Years:	10%
5 Years:	5%
3 Years:	-3%
Last Year:	-6%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 1:43 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	2	2	2	2	2	2	5	14	14	14	14	14	14
Reserves	125	130	129	128	142	122	246	295	346	358	301	274	276
Borrowings	43	65	71	89	87	173	209	224	232	239	220	139	125
Other Liabilities	55	61	60	70	75	87	92	80	94	96	102	120	125
Total Liabilities	226	259	262	288	307	385	551	614	687	707	637	548	539
Fixed Assets	94	87	85	168	172	177	178	200	263	299	267	269	258
CWIP	15	36	65	6	5	4	22	71	57	35	45	2	6
Investments	11	17	18	15	18	10	8	0	0	0	3	0	0
Other Assets	105	118	94	99	112	193	344	342	367	373	321	277	274
Total Assets	226	259	262	288	307	385	551	614	687	707	637	548	539

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	23	14	15	4	2	59	90	34	63	43	116	105
Cash from Investing Activity +	-20	-25	-18	-13	7	-101	-97	-44	-41	-26	-55	-16
Cash from Financing Activity +	-8	13	1	10	-12	89	12	-47	-1	-22	-41	-91
Net Cash Flow	-4	2	-2	1	-4	47	6	-57	21	-4	19	-1

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-20.00	-39.00	-55.00	-68.00	-75.00	-80.00	-53.00	-158.00	-149.00	-177.00	-202.00	-111.00

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	79	106	91	101	99	83	59	87	66	80	44	76
Inventory Days	225	149	125	160	208	234	347	594	441	380	309	245
Days Payable	134	120	95	113	147	183	169	260	169	154	109	182
Cash Conversion Cycle	171	136	122	148	160	134	237	421	338	306	244	139
Working Capital Days	72	73	4	20	115	90	97	202	171	180	123	108
ROCE %	8%	9%	3%	6%	2%	31%	41%	12%	13%	7%	-0%	3%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	59.58%	59.58%	59.58%	59.58%	59.58%	59.58%	62.06%	62.06%	62.06%	62.06%	62.06%	62.06%
FIIs	0.01%	0.01%	0.01%	0.01%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.05%
DIIs	0.05%	0.05%	0.05%	0.05%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Public	38.37%	38.37%	38.37%	38.38%	38.45%	38.46%	36.00%	36.04%	36.05%	36.05%	36.11%	36.41%
Others	1.98%	1.98%	1.98%	1.98%	1.95%	1.95%	1.92%	1.89%	1.89%	1.89%	1.82%	1.47%
No. of Shareholders	18,578	17,518	17,472	17,971	17,610	16,897	16,148	15,721	15,150	15,178	14,589	13,221

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	5.00	5.00	5.00	5.00	5.00
Basic EPS (Rs.)	-7.99	-17.85	5.33	15.77	20.63
Diluted EPS (Rs.)	-7.99	-17.85	5.33	15.69	20.63
Cash EPS (Rs.)	0.24	-8.77	14.08	21.78	25.83
Book Value[Excl.RevalReserv]/Share (Rs.)	98.76	108.08	128.76	124.90	107.27
Book Value[Incl.RevalReserv]/Share (Rs.)	98.76	108.08	128.76	124.90	107.27
Revenue From Operations / Share (Rs.)	116.25	121.27	138.15	130.79	101.55
PBDIT / Share (Rs.)	13.62	8.88	24.12	31.17	26.89
PBIT / Share (Rs.)	5.06	-0.90	15.26	24.13	21.69
PBT / Share (Rs.)	-3.42	-17.98	9.34	17.90	15.05
Net Profit / Share (Rs.)	-8.31	-18.56	5.22	14.74	20.63
NP After MI And SOA / Share (Rs.)	-7.99	-17.85	5.35	15.77	20.63
PBDIT Margin (%)	11.71	7.32	17.46	23.83	26.47
PBIT Margin (%)	4.34	-0.74	11.04	18.44	21.35
PBT Margin (%)	-2.94	-14.82	6.76	13.68	14.82
Net Profit Margin (%)	-7.15	-15.30	3.77	11.27	20.31
NP After MI And SOA Margin (%)	-6.86	-14.71	3.87	12.06	20.31
Return on Networth / Equity (%)	-7.98	-16.36	4.15	12.62	19.23
Return on Capital Employeed (%)	3.89	-0.61	8.81	14.56	14.92
Return On Assets (%)	-4.20	-8.09	2.18	6.62	9.69
Long Term Debt / Equity (X)	0.14	0.26	0.30	0.30	0.32
Total Debt / Equity (X)	0.45	0.68	0.63	0.57	0.66
Asset Turnover Ratio (%)	0.56	0.52	0.55	0.57	0.51
Current Ratio (X)	1.40	1.21	1.52	1.48	1.46
Quick Ratio (X)	0.89	0.58	0.74	0.70	0.79
Inventory Turnover Ratio (X)	0.70	0.77	0.91	1.06	1.02
Dividend Payout Ratio (NP) (%)	-15.65	-7.00	46.68	0.00	12.09
Dividend Payout Ratio (CP) (%)	217.49	-15.50	17.58	0.00	9.65
Earning Retention Ratio (%)	115.65	107.00	53.32	0.00	87.91
Cash Earning Retention Ratio (%)	-117.49	115.50	82.42	0.00	90.35
Interest Coverage Ratio (X)	2.31	1.23	4.07	5.00	4.05
Interest Coverage Ratio (Post Tax) (X)	0.02	-0.20	1.88	3.37	4.11
Enterprise Value (Cr.)	505.89	464.45	795.24	883.96	786.75
EV / Net Operating Revenue (X)	1.51	1.33	2.00	2.34	2.69
EV / EBITDA (X)	12.87	18.12	11.43	9.83	10.14
MarketCap / Net Operating Revenue (X)	1.30	0.88	1.49	1.91	2.09
Retention Ratios (%)	115.65	107.00	53.31	0.00	87.90
Price / BV (X)	1.51	0.98	1.59	2.00	1.98
Price / Net Operating Revenue (X)	1.30	0.88	1.49	1.91	2.10
EarningsYield	-0.05	-0.16	0.02	0.06	0.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 763.13

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 December 22, 2024, is Undervalued by 98.73% compared to the current share price 384.00

Intrinsic Value of as of December 22, 2024 is: 394.32

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 December 22, 2024, is Undervalued by 2.69% compared to the current share price 384.00

Last 5 Year EPS CAGR: -48.33%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (220.92 cr) compared to borrowings (147.38 cr), indicating strong financial stability. The company has shown consistent growth in sales (269.38 cr) and profit (21.23 cr) over the years.	The stock has a low average ROCE of 11.25%, which may not be favorable. The stock has a high average Working Capital Days of 104.58, which may not be favorable. The stock has a high average Cash Conversion Cycle of 213.00, which may not be favorable.

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 :
1. Net Profit Margin: -7.15%
  - 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: 3.89% (Industry Average ROCE: 16.2%)
  - 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%: -7.98% (Industry Average ROE: 16.32%)
  - 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): 0.02
  - 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: 0.89
  - 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: 138 (Industry average Stock P/E: 56.05)
  - 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: 0.45
  - 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

Fermenta Biotech Ltd. is a Public Limited Listed company incorporated on 01/05/1951 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L99999MH1951PLC008485 and registration number is 008485. Currently Company is involved in the business activities of Manufacture of medicinal substances used in the manufacture of pharmaceuticals: antibiotics, endocrine products, basic vitamins; opium derivatives; sulpha drugs; serums and plasmas; salicylic acid, its salts and esters; glycosides and vegetable alkaloids; chemically pure suger etc.. Company’s Total Operating Revenue is Rs. 387.96 Cr. and Equity Capital is Rs. 14.42 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Pharmaceuticals	A-1501, Thane One, Thane Maharashtra 400610	info@fermentabiotech.com https://fermentabiotech.com

Management
Name	Position Held
Mr. Pradeep M Chandan	Chairman & Ind.Dire (Non-Exe)
Mr. Krishna Datla	Exe.Vice Chairman & Whole Time Director
Mr. Prashant Nagre	Managing Director
Mr. Satish Varma	Executive Director
Ms. Anupama Datla Desai	Executive Director
Ms. Rajeshwari Datla	Non Executive Director
Mr. Pramod Kasat	Ind. Non-Executive Director
Ms. Rajashri Ojha	Ind. Non-Executive Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹763.13, which is 98.73% higher than the current market price of ₹384.00. The stock has a market capitalization of 1,130 Cr. and recorded a high/low of 440/145 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹276 Cr and total liabilities of ₹539 Cr.

What is the Market Cap of ?

The Market Cap of is 1,130 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 384.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 440/145.

What is the Stock P/E of ?

The Stock P/E of is 138.

What is the Book Value of ?

The Book Value of is 98.6.

What is the Dividend Yield of ?

The Dividend Yield of is 0.33 %.

What is the ROCE of ?

The ROCE of is 3.20 %.

What is the ROE of ?

The ROE of is 5.59 %.

What is the Face Value of ?

The Face Value of is 5.00.