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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Gland Pharma Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:15 pm

Market Cap 28,890 Cr.
Current Price 1,755
High / Low2,221/1,586
Stock P/E26.2
Book Value 557
Dividend Yield1.14 %
ROCE16.7 %
ROE12.3 %
Face Value 1.00
PEG Ratio-14.95

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

View Share Price Target for Gland Pharma Ltd

Competitors of Gland Pharma Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Gland Pharma Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales8598881,1541,0801,0631,1038571,0489267858841,0111,098
Expenses595560718704714755587753642616625664728
Operating Profit264328436377349348270295284169259347369
OPM %31%37%38%35%33%32%32%28%31%22%29%34%34%
Other Income354762514665746662-18354143
Interest1111121232211
Depreciation25252526283135373838394040
Profit before tax273349472401366381309322305112254347372
Tax %25%25%26%25%25%25%26%26%25%29%26%26%26%
Net Profit20426035130227328622924022879188258277
EPS in Rs12.5015.9221.4018.4016.6417.4113.9414.5513.824.8111.3915.6416.81

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5277559919941,3481,4791,6202,0442,6333,4634,4013,6173,606
Expenses3945196306788458541,0851,3381,6782,1612,8902,5982,546
Operating Profit1332363613165026255357069551,3021,5111,0191,060
OPM %25%31%36%32%37%42%33%35%36%38%34%28%29%
Other Income14593037344966139135224184120
Interest31313171664473577
Depreciation11152857637478829599110147154
Profit before tax1332133272724595785026869931,3351,6191,0481,018
Tax %24%26%32%23%32%28%36%34%22%25%25%26%
Net Profit1011582242093144143214527739971,212776752
EPS in Rs86.09134.45190.40133.53202.40267.01207.24291.6549.8860.9473.7847.1145.66
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)56.44%41.77%-6.70%50.24%31.85%-22.46%40.81%71.02%28.98%21.56%-35.97%
Change in YoY Net Profit Growth (%)0.00%-14.66%-48.47%56.94%-18.39%-54.31%63.27%30.21%-42.04%-7.41%-57.54%

Gland Pharma Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:15%
5 Years:15%
3 Years:6%
TTM:21%
Compounded Profit Growth
10 Years:17%
5 Years:18%
3 Years:2%
TTM:40%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:-21%
1 Year:0%
Return on Equity
10 Years:16%
5 Years:16%
3 Years:14%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:41 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital12121615161616161616161616
Reserves5988221,3791,6622,0742,3952,8473,6315,8877,1427,9378,9799,157
Borrowings123176166117665555443
Other Liabilities187277197292378512655435588671815542737
Total Liabilities9201,2871,7582,0862,4742,9283,5234,0866,4967,8348,7739,5419,913
Fixed Assets3094606497888728439299689541,5021,5711,6941,673
CWIP202208192202161199123188338191177120129
Investments00000000116382,3862,790
Other Assets4096199171,0961,4411,8872,4712,9295,2035,9787,0175,3425,322
Total Assets9201,2871,7582,0862,4742,9283,5234,0866,4967,8348,7739,5419,913

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2204762021857016057913681,136
Cash from Investing Activity +-12-100-359-319-761-1,521-1,0071,211-2,918
Cash from Financing Activity +-93-116-4-3-71,2383515-7
Net Cash Flow115260-160-136-67322-1811,594-1,789

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow133.00113.00185.00150.00385.00619.00529.00701.00950.00-4.00-4.00-3.00

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 Days626262951031079083718987103
Inventory Days169229283248271283388250312205421253
Days Payable5774586013616119082978012859
Cash Conversion Cycle174217288283239229289251286214381296
Working Capital Days70100141155154185191161169168241224
ROCE %36%39%22%28%30%22%27%30%28%25%15%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters58.00%58.00%57.87%57.86%57.86%57.86%57.86%57.86%57.86%57.86%51.83%51.83%
FIIs11.30%10.72%9.41%6.10%4.67%4.33%2.80%4.91%4.05%3.59%6.88%4.48%
DIIs11.66%12.46%17.36%21.92%23.13%23.23%23.38%22.45%24.17%25.23%32.83%35.37%
Public19.05%18.82%15.35%14.13%14.35%14.59%15.97%14.78%13.93%13.32%8.46%8.33%
No. of Shareholders1,09,0971,09,0981,17,3391,27,8791,48,4691,50,5781,81,7471,61,6271,36,0211,22,3751,22,6651,22,358

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Mirae Asset Emerging Bluechip Fund3,271,2281.8505.732,047,1142024-11-2259.8%
Mirae Asset Large Cap Fund2,337,9061.05361.442,047,1142024-11-2214.2%
Mirae Asset Tax Saver Fund2,047,1141.81316.482,047,1142024-11-220%
SBI Large & Midcap Fund2,000,0001.98309.22,047,1142024-11-22-2.3%
Nippon India Small Cap Fund1,696,9330.7262.352,047,1142024-11-22-17.11%
Mirae Asset Focused Fund1,580,3112.82244.322,047,1142024-11-22-22.8%
Nippon India Pharma Fund1,500,0004.19231.92,047,1142024-11-22-26.73%
Nippon India Multi Cap Fund1,416,4371.05218.982,047,1142024-11-22-30.81%
SBI Magnum Global Fund1,300,0003.28200.982,047,1142024-11-22-36.5%
HDFC Large and Mid Cap Fund - Regular Plan1,105,8001.44170.962,047,1142024-11-22-45.98%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)46.9047.4473.8163.0749.88
Diluted EPS (Rs.)46.9047.4373.8162.9949.88
Cash EPS (Rs.)67.8256.3380.4666.9855.98
Book Value[Excl.RevalReserv]/Share (Rs.)529.65483.23435.64360.86235.32
Book Value[Incl.RevalReserv]/Share (Rs.)529.65483.23435.64360.86235.32
Revenue From Operations / Share (Rs.)343.92220.07267.85211.68169.94
PBDIT / Share (Rs.)91.2776.82105.5487.8470.64
PBIT / Share (Rs.)70.3567.9198.8381.8064.54
PBT / Share (Rs.)68.7664.0398.5181.5964.08
Net Profit / Share (Rs.)46.9047.4273.7560.9449.88
NP After MI And SOA / Share (Rs.)46.9047.4273.7560.9449.88
PBDIT Margin (%)26.5334.9039.4041.4941.56
PBIT Margin (%)20.4530.8536.8938.6437.97
PBT Margin (%)19.9929.0936.7738.5437.70
Net Profit Margin (%)13.6321.5427.5328.7929.35
NP After MI And SOA Margin (%)13.6321.5427.5328.7929.35
Return on Networth / Equity (%)8.859.8116.9216.8821.19
Return on Capital Employeed (%)12.5013.8922.3922.3626.83
Return On Assets (%)7.248.8915.4615.3418.91
Long Term Debt / Equity (X)0.010.000.000.000.00
Total Debt / Equity (X)0.030.000.000.000.00
Asset Turnover Ratio (%)0.580.430.610.650.00
Current Ratio (X)4.049.4610.0510.007.93
Quick Ratio (X)2.856.808.027.515.82
Inventory Turnover Ratio (X)1.251.101.661.720.00
Interest Coverage Ratio (X)57.38169.90330.81421.28152.41
Interest Coverage Ratio (Post Tax) (X)30.48113.46232.15293.28108.61
Enterprise Value (Cr.)28818.2817126.9950622.6337532.510.00
EV / Net Operating Revenue (X)5.094.7311.5010.840.00
EV / EBITDA (X)19.1713.5429.1926.120.00
MarketCap / Net Operating Revenue (X)5.365.7612.2111.710.00
Price / BV (X)3.482.637.506.870.00
Price / Net Operating Revenue (X)5.365.7612.2111.710.00
EarningsYield0.020.030.020.020.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Gland Pharma Ltd as of November 23, 2024 is: 1,815.45

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 23, 2024, Gland Pharma Ltd is Undervalued by 3.44% compared to the current share price 1,755.00

Intrinsic Value of Gland Pharma Ltd as of November 23, 2024 is: 1,783.64

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 23, 2024, Gland Pharma Ltd is Undervalued by 1.63% compared to the current share price 1,755.00

Last 5 Year EPS CAGR: -1.75%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 26.58%, which is a positive sign.
  2. The company has higher reserves (4,193.08 cr) compared to borrowings (48.08 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (252.85 cr) and profit (320.54 cr) over the years.
  1. The stock has a high average Working Capital Days of 163.25, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 262.25, 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 Gland Pharma Ltd:
    1. Net Profit Margin: 13.63%
      • 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: 12.5% (Industry Average ROCE: 0.59%)
      • 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%: 8.85% (Industry Average ROE: 0.49%)
      • 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): 30.48
      • 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: 2.85
      • 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: 26.2 (Industry average Stock P/E: 0)
      • 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: 0.03
      • 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

Gland Pharma Ltd. is a Public Limited Listed company incorporated on 20/03/1978 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L24239TG1978PLC002276 and registration number is 002276. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 4400.71 Cr. and Equity Capital is Rs. 16.43 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsSy.No. 143-148, 150 & 151, Hyderabad Telangana 500043investors@glandpharma.com
https://www.glandpharma.com
Management
NamePosition Held
Mr. Yiu Kwan Stanley LauChairman & Ind.Director
Mr. Srinivas SaduManaging Director & CEO
Mr. Yao FangNon Executive Director
Dr. Jia Ai (Allen) ZhangNon Executive Director
Mr. Qiyu ChenNon Executive Director
Mr. Essaji Goolam VahanvatiIndependent Director
Mr. Udo Johannes VetterIndependent Director
Mr. Satyanarayana Murthy ChavaliIndependent Director
Ms. Naina Lal KidwaiIndependent Director

FAQ

What is the latest intrinsic value of Gland Pharma Ltd?

The latest intrinsic value of Gland Pharma Ltd as on 22 November 2024 is ₹1815.45, which is 3.44% higher than the current market price of ₹1,755.00.

What is the Market Cap of Gland Pharma Ltd?

The Market Cap of Gland Pharma Ltd is 28,890 Cr..

What is the current Stock Price of Gland Pharma Ltd as on 22 November 2024?

The current stock price of Gland Pharma Ltd as on 22 November 2024 is 1,755.

What is the High / Low of Gland Pharma Ltd stocks in FY 2024?

In FY 2024, the High / Low of Gland Pharma Ltd stocks is 2,221/1,586.

What is the Stock P/E of Gland Pharma Ltd?

The Stock P/E of Gland Pharma Ltd is 26.2.

What is the Book Value of Gland Pharma Ltd?

The Book Value of Gland Pharma Ltd is 557.

What is the Dividend Yield of Gland Pharma Ltd?

The Dividend Yield of Gland Pharma Ltd is 1.14 %.

What is the ROCE of Gland Pharma Ltd?

The ROCE of Gland Pharma Ltd is 16.7 %.

What is the ROE of Gland Pharma Ltd?

The ROE of Gland Pharma Ltd is 12.3 %.

What is the Face Value of Gland Pharma Ltd?

The Face Value of Gland Pharma Ltd is 1.00.

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 Gland Pharma 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