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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 506414 | NSE: FERMENTA

Fermenta Biotech Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 8:37 pm

Market Cap 962 Cr.
Current Price 327
High / Low355/145
Stock P/E117
Book Value 98.6
Dividend Yield0.38 %
ROCE3.20 %
ROE5.59 %
Face Value 5.00
PEG Ratio-2.42

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

View Share Price Target for Fermenta Biotech Ltd

Competitors of Fermenta Biotech 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 Fermenta Biotech Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales109.6599.8592.8696.1691.8998.0354.86105.1682.4556.9198.9797.3478.13
Expenses83.8784.1490.6578.4086.9994.7564.6885.8771.5270.8273.8491.9677.33
Operating Profit25.7815.712.2117.764.903.28-9.8219.2910.93-13.9125.135.380.80
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 Income1.822.271.162.883.842.69-19.41-7.912.01-5.532.525.382.82
Interest4.144.424.104.434.474.865.146.314.783.695.193.393.43
Depreciation5.956.446.686.496.679.076.326.195.955.936.386.466.12
Profit before tax17.517.12-7.419.72-2.40-7.96-40.69-1.122.21-29.0616.080.91-5.93
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 Profit11.544.14-8.347.72-2.59-8.46-37.64-5.292.21-29.079.99-7.14-5.93
EPS in Rs3.841.53-2.732.61-0.88-2.75-12.70-1.400.62-9.703.35-2.36-1.98

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

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales117139142155164302403292376397349335331
Expenses94113126134152209248225293335330307314
Operating Profit232616211293156668362182817
OPM %20%19%11%13%7%31%39%23%22%16%5%8%5%
Other Income23013961288-2045
Interest5546101421201918211716
Depreciation91098101212152026282525
Profit before tax101437-676129435227-51-10-18
Tax %36%24%67%61%49%28%8%-37%18%44%4%143%
Net Profit41012-946117604315-53-24-32
EPS in Rs1.512.860.17-0.41-4.1412.2142.7120.2315.465.25-17.36-7.84-10.69
Dividend Payout %124%29%249%-51%-5%2%1%24%16%23%-7%-16%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
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%

Fermenta Biotech Ltd 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:19%
5 Years:9%
3 Years:5%
1 Year:109%
Return on Equity
10 Years:10%
5 Years:5%
3 Years:-3%
Last Year:-6%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital22222251414141414
Reserves125130129128142122246295346358301274
Borrowings4365718987173209224232239220139
Other Liabilities55616070758792809496102120
Total Liabilities226259262288307385551614687707637548
Fixed Assets948785168172177178200263299267269
CWIP15366565422715735452
Investments111718151810800030
Other Assets1051189499112193344342367373321277
Total Assets226259262288307385551614687707637548

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +231415425990346343116105
Cash from Investing Activity +-20-25-18-137-101-97-44-41-26-55-16
Cash from Financing Activity +-813110-128912-47-1-22-41-91
Net Cash Flow-42-21-4476-5721-419-1

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days79106911019983598766804476
Inventory Days225149125160208234347594441380309245
Days Payable13412095113147183169260169154109182
Cash Conversion Cycle171136122148160134237421338306244139
Working Capital Days72734201159097202171180123108
ROCE %8%9%3%6%2%31%41%12%13%7%-0%3%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters59.44%59.58%59.58%59.58%59.58%59.58%59.58%62.06%62.06%62.06%62.06%62.06%
FIIs0.01%0.01%0.01%0.01%0.01%0.01%0.00%0.00%0.00%0.00%0.00%0.00%
DIIs0.00%0.05%0.05%0.05%0.05%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public38.57%38.37%38.37%38.37%38.38%38.45%38.46%36.00%36.04%36.05%36.05%36.11%
Others1.98%1.98%1.98%1.98%1.98%1.95%1.95%1.92%1.89%1.89%1.89%1.82%
No. of Shareholders18,39918,57817,51817,47217,97117,61016,89716,14815,72115,15015,17814,589

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
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)-7.99-17.855.3315.7720.63
Diluted EPS (Rs.)-7.99-17.855.3315.6920.63
Cash EPS (Rs.)0.24-8.7714.0821.7825.83
Book Value[Excl.RevalReserv]/Share (Rs.)98.76108.08128.76124.90107.27
Book Value[Incl.RevalReserv]/Share (Rs.)98.76108.08128.76124.90107.27
Revenue From Operations / Share (Rs.)116.25121.27138.15130.79101.55
PBDIT / Share (Rs.)13.628.8824.1231.1726.89
PBIT / Share (Rs.)5.06-0.9015.2624.1321.69
PBT / Share (Rs.)-3.42-17.989.3417.9015.05
Net Profit / Share (Rs.)-8.31-18.565.2214.7420.63
NP After MI And SOA / Share (Rs.)-7.99-17.855.3515.7720.63
PBDIT Margin (%)11.717.3217.4623.8326.47
PBIT Margin (%)4.34-0.7411.0418.4421.35
PBT Margin (%)-2.94-14.826.7613.6814.82
Net Profit Margin (%)-7.15-15.303.7711.2720.31
NP After MI And SOA Margin (%)-6.86-14.713.8712.0620.31
Return on Networth / Equity (%)-7.98-16.364.1512.6219.23
Return on Capital Employeed (%)3.89-0.618.8114.5614.92
Return On Assets (%)-4.20-8.092.186.629.69
Long Term Debt / Equity (X)0.140.260.300.300.32
Total Debt / Equity (X)0.450.680.630.570.66
Asset Turnover Ratio (%)0.560.520.550.570.51
Current Ratio (X)1.401.211.521.481.46
Quick Ratio (X)0.890.580.740.700.79
Inventory Turnover Ratio (X)0.700.770.911.061.02
Dividend Payout Ratio (NP) (%)-15.65-7.0046.680.0012.09
Dividend Payout Ratio (CP) (%)217.49-15.5017.580.009.65
Earning Retention Ratio (%)115.65107.0053.320.0087.91
Cash Earning Retention Ratio (%)-117.49115.5082.420.0090.35
Interest Coverage Ratio (X)2.311.234.075.004.05
Interest Coverage Ratio (Post Tax) (X)0.02-0.201.883.374.11
Enterprise Value (Cr.)505.89464.45795.24883.96786.75
EV / Net Operating Revenue (X)1.511.332.002.342.69
EV / EBITDA (X)12.8718.1211.439.8310.14
MarketCap / Net Operating Revenue (X)1.300.881.491.912.09
Retention Ratios (%)115.65107.0053.310.0087.90
Price / BV (X)1.510.981.592.001.98
Price / Net Operating Revenue (X)1.300.881.491.912.10
EarningsYield-0.05-0.160.020.060.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Fermenta Biotech Ltd as of November 21, 2024 is: 647.32

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 21, 2024, Fermenta Biotech Ltd is Undervalued by 97.96% compared to the current share price 327.00

Intrinsic Value of Fermenta Biotech Ltd as of November 21, 2024 is: 334.48

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 21, 2024, Fermenta Biotech Ltd is Undervalued by 2.29% compared to the current share price 327.00

Last 5 Year EPS CAGR: -48.33%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (216.33 cr) compared to borrowings (149.25 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (269.38 cr) and profit (21.23 cr) over the years.
  1. The stock has a low average ROCE of 11.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 104.58, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 213.00, 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 Fermenta Biotech Ltd:
    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: 16.25%)
      • 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%: -7.98% (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): 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: 117 (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: 0.45
      • 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.
INDUSTRYADDRESSCONTACT
PharmaceuticalsA-1501, Thane One, Thane Maharashtra 400610info@fermentabiotech.com
https://fermentabiotech.com
Management
NamePosition Held
Mr. Pradeep M ChandanChairman & Ind.Dire (Non-Exe)
Mr. Krishna DatlaExe.Vice Chairman & Whole Time Director
Mr. Prashant NagreManaging Director
Mr. Satish VarmaExecutive Director
Ms. Anupama Datla DesaiExecutive Director
Ms. Rajeshwari DatlaNon Executive Director
Mr. Pramod KasatInd. Non-Executive Director
Ms. Rajashri OjhaInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Fermenta Biotech Ltd?

The latest intrinsic value of Fermenta Biotech Ltd as on 21 November 2024 is ₹647.32, which is 97.96% higher than the current market price of ₹327.00.

What is the Market Cap of Fermenta Biotech Ltd?

The Market Cap of Fermenta Biotech Ltd is 962 Cr..

What is the current Stock Price of Fermenta Biotech Ltd as on 21 November 2024?

The current stock price of Fermenta Biotech Ltd as on 21 November 2024 is ₹327.

What is the High / Low of Fermenta Biotech Ltd stocks in FY 2024?

In FY 2024, the High / Low of Fermenta Biotech Ltd stocks is 355/145.

What is the Stock P/E of Fermenta Biotech Ltd?

The Stock P/E of Fermenta Biotech Ltd is 117.

What is the Book Value of Fermenta Biotech Ltd?

The Book Value of Fermenta Biotech Ltd is 98.6.

What is the Dividend Yield of Fermenta Biotech Ltd?

The Dividend Yield of Fermenta Biotech Ltd is 0.38 %.

What is the ROCE of Fermenta Biotech Ltd?

The ROCE of Fermenta Biotech Ltd is 3.20 %.

What is the ROE of Fermenta Biotech Ltd?

The ROE of Fermenta Biotech Ltd is 5.59 %.

What is the Face Value of Fermenta Biotech Ltd?

The Face Value of Fermenta Biotech Ltd is 5.00.

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 Fermenta Biotech 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