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Last Updated on: 05 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532296 | NSE: GLENMARK

Glenmark Pharmaceuticals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 2, 2024, 10:03 pm

Market Cap 47,698 Cr.
Current Price 1,690
High / Low1,831/702
Stock P/E
Book Value 278
Dividend Yield0.15 %
ROCE12.3 %
ROE50.9 %
Face Value 1.00
PEG Ratio0.00

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

View Share Price Target for Glenmark Pharmaceuticals Ltd

Competitors of Glenmark Pharmaceuticals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,180 Cr. 292390/10860.3 20.50.23 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 66.8 Cr. 90.094.9/22.725.6 11.90.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 25.8 Cr. 17.619.5/7.6033.5 6.640.00 %4.06 %3.33 % 10.0
Godavari Drugs Ltd 89.6 Cr. 119155/84.013.9 51.80.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 13,105 Cr. 1,0701,335/61031.0 2072.03 %28.1 %21.1 % 2.00
Industry Average20,508.11 Cr1,254.0761.59178.210.30%16.88%15.97%6.55

All Competitor Stocks of Glenmark Pharmaceuticals Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales2,9653,1473,1733,0192,7773,0183,1003,0013,0363,2072,5073,0633,244
Expenses2,3912,5572,4802,5562,3462,5392,6262,6032,5992,7452,7152,5592,656
Operating Profit574590693463432479474398437462-209504588
OPM %19%19%22%15%16%16%15%13%14%14%-8%16%18%
Other Income59-13-1642518386209-696-32-2058735131
Interest7669678760839710911212113414940
Depreciation113123119132147146152135142141147151118
Profit before tax444385343270408337435-542151-6-403555462
Tax %31%29%30%36%48%17%33%-26%-14%997%-18%319%26%
Net Profit307275240173211279291-403173-62-331-1,214340
EPS in Rs10.869.137.865.516.829.239.66-15.185.31-2.90-12.45-43.1712.06

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales5,0126,0056,5637,5629,0799,0749,86510,64110,94412,30512,99011,81312,021
Expenses3,9974,9145,3486,1257,0437,4578,2808,9428,8609,97810,71210,61810,675
Operating Profit1,0151,0911,2141,4372,0371,6171,5861,6992,0842,3272,2781,1951,346
OPM %20%18%18%19%22%18%16%16%19%19%18%10%11%
Other Income1111-18020-448937519195-101-449336265
Interest160189190179237286335377353298350516444
Depreciation127217300234264302326417444487611582558
Profit before tax7396975441,0441,4911,1191,3011,0961,3821,441868434609
Tax %15%22%61%29%26%28%29%29%30%31%57%430%
Net Profit6285462097431,109804925776970994377-1,434-1,266
EPS in Rs22.8919.997.7226.3339.2928.4932.7827.5034.3833.3710.53-53.22-46.46
Dividend Payout %0%0%26%8%5%7%6%9%7%7%24%-5%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-13.06%-61.72%255.50%49.26%-27.50%15.05%-16.11%25.00%2.47%-62.07%-480.37%
Change in YoY Net Profit Growth (%)0.00%-48.66%317.22%-206.24%-76.76%42.55%-31.16%41.11%-22.53%-64.55%-418.30%

Glenmark Pharmaceuticals 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:7%
5 Years:4%
3 Years:3%
TTM:-1%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-407%
Stock Price CAGR
10 Years:8%
5 Years:42%
3 Years:48%
1 Year:125%
Return on Equity
10 Years:5%
5 Years:-3%
3 Years:-11%
Last Year:-51%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 3:45 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital272727282828282828282828
Reserves2,7362,9561,7563,6014,4645,1355,5776,0427,0369,0589,4467,820
Borrowings2,7653,2673,8003,9884,7244,6394,4494,8694,9863,9624,6081,231
Other Liabilities1,4662,1762,7262,5752,5482,7933,2353,7293,5244,0035,2895,279
Total Liabilities6,9948,4278,30910,19311,76412,59513,28914,66815,57517,05219,37114,358
Fixed Assets2,8223,0912,0152,5942,7553,0303,6705,0295,1295,8875,4224,210
CWIP654775437081,1221,3991,2221,3821,0101,190662
Investments00171716153025255045790
Other Assets4,1665,3315,7997,0398,2858,4298,1908,3939,04010,10512,7158,697
Total Assets6,9948,4278,30910,19311,76412,59513,28914,66815,57517,05219,37114,358

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 6488544823456571,6481,3241,3921,1311,109625-265
Cash from Investing Activity -558-566-712-950-1,001-1,003-883-774-662-316-5154,387
Cash from Financing Activity 195-98199699543-468-739-445-442-520-77-3,906
Net Cash Flow285190-3193199177-2971742827232215

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-1.00-2.00-2.00-2.00-2.00-3.00-3.00-3.00-2.00-1.00-2.000.00

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 Days11913114012097948183869211557
Inventory Days194191247249299244244211230208203208
Days Payable239279379308243225241210226190172210
Cash Conversion Cycle754386115211385849011014756
Working Capital Days9483668913311176699610015932
ROCE %18%15%16%19%21%15%15%14%15%16%10%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters46.65%46.65%46.65%46.65%46.65%46.65%46.65%46.65%46.65%46.65%46.65%46.65%
FIIs24.18%24.12%24.23%23.14%23.19%22.47%25.51%24.79%23.71%21.38%20.98%23.05%
DIIs10.86%10.96%10.50%10.90%10.69%10.40%9.10%10.31%10.92%13.36%13.93%13.21%
Government0.00%0.00%0.00%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.04%
Public18.31%18.27%18.63%19.27%19.45%20.46%18.70%18.21%18.70%18.58%18.42%17.06%
No. of Shareholders3,17,3833,10,5163,12,4733,13,5403,00,1062,85,4612,36,9082,32,6852,09,9311,99,4511,92,6301,93,949

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Aditya Birla Sun Life Flexi Cap Fund2,000,0001.29293.752,000,0002024-11-030%
Aditya Birla Sun Life Midcap Fund1,135,6972.74166.812,000,0002024-11-03-43.22%
UTI Value Fund950,0001.35139.532,000,0002024-11-03-52.5%
Mahindra Manulife Small Cap Fund700,0002.04102.812,000,0002024-11-03-65%
Bandhan Core Equity Fund550,0001.3580.782,000,0002024-11-03-72.5%
Kotak Equity Arbitrage Fund - Regular Plan479,9500.1470.492,000,0002024-11-03-76%
Bandhan Small Cap Fund463,1851.0268.032,000,0002024-11-03-76.84%
UTI Large & Mid Cap Fund341,9001.3450.222,000,0002024-11-03-82.91%
Bandhan Flexi Cap Fund325,0000.6247.732,000,0002024-11-03-83.75%
HDFC Large and Mid Cap Fund - Regular Plan311,0000.245.682,000,0002024-11-03-84.45%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)-53.2210.5333.3734.3827.50
Diluted EPS (Rs.)-53.2210.5333.3734.3827.50
Cash EPS (Rs.)-30.1835.0452.4650.1042.28
Book Value[Excl.RevalReserv]/Share (Rs.)278.09348.70334.48250.36215.12
Book Value[Incl.RevalReserv]/Share (Rs.)278.09348.70334.48250.36215.12
Revenue From Operations / Share (Rs.)418.62460.36436.08387.85377.11
PBDIT / Share (Rs.)72.1391.9788.1475.6565.84
PBIT / Share (Rs.)51.5070.3170.8959.9351.05
PBT / Share (Rs.)1.2930.7851.0848.9938.84
Net Profit / Share (Rs.)-50.8013.3735.2134.3827.50
NP After MI And SOA / Share (Rs.)-53.2110.5333.3734.3827.50
PBDIT Margin (%)17.2219.9720.2119.5017.45
PBIT Margin (%)12.3015.2716.2515.4513.53
PBT Margin (%)0.306.6811.7112.6310.30
Net Profit Margin (%)-12.132.908.078.867.29
NP After MI And SOA Margin (%)-12.712.287.658.867.29
Return on Networth / Equity (%)-19.133.1310.3613.7312.78
Return on Capital Employeed (%)17.0113.8416.1314.8313.64
Return On Assets (%)-10.451.535.516.215.28
Long Term Debt / Equity (X)0.000.400.280.550.66
Total Debt / Equity (X)0.120.450.400.660.73
Asset Turnover Ratio (%)0.700.710.420.420.41
Current Ratio (X)1.281.961.771.751.65
Quick Ratio (X)0.841.371.231.211.13
Inventory Turnover Ratio (X)1.151.311.851.851.46
Dividend Payout Ratio (NP) (%)0.0023.737.497.278.76
Dividend Payout Ratio (CP) (%)0.007.764.934.995.70
Earning Retention Ratio (%)0.0076.2792.5192.7391.24
Cash Earning Retention Ratio (%)0.0092.2495.0795.0194.30
Interest Coverage Ratio (X)3.947.428.346.044.92
Interest Coverage Ratio (Post Tax) (X)-0.804.275.213.622.97
Enterprise Value (Cr.)26350.4516364.2715087.8616656.129188.07
EV / Net Operating Revenue (X)2.231.261.231.520.86
EV / EBITDA (X)12.956.316.077.804.95
MarketCap / Net Operating Revenue (X)2.291.011.011.200.54
Retention Ratios (%)0.0076.2692.5092.7291.23
Price / BV (X)3.441.381.371.860.95
Price / Net Operating Revenue (X)2.291.011.011.200.54
EarningsYield-0.050.020.070.070.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Glenmark Pharmaceuticals Ltd as of November 5, 2024 is: 2,125.71

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 5, 2024, Glenmark Pharmaceuticals Ltd is Undervalued by 25.78% compared to the current share price ₹1,690.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Glenmark Pharmaceuticals Ltd as of November 5, 2024 is: 880.87

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 5, 2024, Glenmark Pharmaceuticals Ltd is Overvalued by 47.88% compared to the current share price ₹1,690.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -58.56%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.50%, which is a positive sign.
  2. The company has higher reserves (5,468.92 cr) compared to borrowings (3,940.67 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (9.08 cr) and profit (299.85 cr) over the years.
  1. The stock has a high average Working Capital Days of 92.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 85.33, 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 Glenmark Pharmaceuticals Ltd:
    1. Net Profit Margin: -12.13%
      • 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: 17.01% (Industry Average ROCE: 16.88%)
      • 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%: -19.13% (Industry Average ROE: 15.97%)
      • 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): -0.8
      • 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: 0.84
      • 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: 0 (Industry average Stock P/E: 61.59)
      • 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: 0.12
      • 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

Glenmark Pharmaceuticals Ltd. is a Public Limited Listed company incorporated on 18/11/1977 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24299MH1977PLC019982 and registration number is 019982. Currently Company is involved in the business activities of Manufacture of allopathic pharmaceutical preparations. Company’s Total Operating Revenue is Rs. 8141.58 Cr. and Equity Capital is Rs. 28.22 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsB/2, Mahalaxmi Chambers, 22, Bhulabhai Desai Road, Mumbai Maharashtra 400026complianceofficer@glenmarkpharma.com
http://www.glenmarkpharma.com
Management
NamePosition Held
Mr. Glenn SaldanhaChairman & Managing Director
Mrs. Cherylann PintoExecutive Director - Corporate Affairs
Mr. V S ManiExecutive Director & Global CFO
Mrs. B E SaldanhaNon Executive Director
Ms. Saira RamasastryInd. Non-Executive Director
Mrs. Vijayalakshmi IyerInd. Non-Executive Director
Mr. Rajesh V DesaiInd. Non-Executive Director
Mr. Dipankar BhattacharjeeInd. Non-Executive Director

FAQ

What is the latest fair value of Glenmark Pharmaceuticals Ltd?

The latest fair value of Glenmark Pharmaceuticals Ltd is ₹2125.71.

What is the Market Cap of Glenmark Pharmaceuticals Ltd?

The Market Cap of Glenmark Pharmaceuticals Ltd is 47,698 Cr..

What is the current Stock Price of Glenmark Pharmaceuticals Ltd as on 05 November 2024?

The current stock price of Glenmark Pharmaceuticals Ltd as on 05 November 2024 is 1,690.

What is the High / Low of Glenmark Pharmaceuticals Ltd stocks in FY 2024?

In FY 2024, the High / Low of Glenmark Pharmaceuticals Ltd stocks is 1,831/702.

What is the Stock P/E of Glenmark Pharmaceuticals Ltd?

The Stock P/E of Glenmark Pharmaceuticals Ltd is .

What is the Book Value of Glenmark Pharmaceuticals Ltd?

The Book Value of Glenmark Pharmaceuticals Ltd is 278.

What is the Dividend Yield of Glenmark Pharmaceuticals Ltd?

The Dividend Yield of Glenmark Pharmaceuticals Ltd is 0.15 %.

What is the ROCE of Glenmark Pharmaceuticals Ltd?

The ROCE of Glenmark Pharmaceuticals Ltd is 12.3 %.

What is the ROE of Glenmark Pharmaceuticals Ltd?

The ROE of Glenmark Pharmaceuticals Ltd is 50.9 %.

What is the Face Value of Glenmark Pharmaceuticals Ltd?

The Face Value of Glenmark Pharmaceuticals 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 Glenmark Pharmaceuticals 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