Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 530317 | NSE: GODAVARI

Godavari Drugs Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 8:30 pm

Market Cap 86.2 Cr.
Current Price 114
High / Low155/87.0
Stock P/E12.9
Book Value 55.4
Dividend Yield0.00 %
ROCE12.7 %
ROE15.5 %
Face Value 10.0
PEG Ratio1.43

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

View Share Price Target for Godavari Drugs Ltd

Competitors of Godavari Drugs Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,399 Cr. 312390/10864.5 20.50.21 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 58.6 Cr. 79.094.9/25.822.5 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 86.2 Cr. 114155/87.012.9 55.40.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 12,800 Cr. 1,0461,335/62030.2 2072.15 %28.1 %21.1 % 2.00
Industry Average19,451.65 Cr1,190.0155.13184.880.32%16.40%16.92%6.61

All Competitor Stocks of Godavari Drugs Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales44.4038.6733.7644.2842.5540.5539.1637.3735.4239.5443.1138.6432.21
Expenses41.3135.7631.1741.5840.1537.9836.8934.6933.1736.4739.5934.1728.98
Operating Profit3.092.912.592.702.402.572.272.682.253.073.524.473.23
OPM %6.96%7.53%7.67%6.10%5.64%6.34%5.80%7.17%6.35%7.76%8.17%11.57%10.03%
Other Income0.020.090.050.120.070.130.300.390.450.00-0.010.080.77
Interest0.710.790.730.620.741.061.101.031.111.301.271.231.44
Depreciation0.420.430.430.420.460.470.510.500.470.490.500.530.55
Profit before tax1.981.781.481.781.271.170.961.541.121.281.742.792.01
Tax %28.28%31.46%9.46%29.21%26.77%26.50%30.21%13.64%27.68%32.81%29.89%4.66%18.91%
Net Profit1.421.221.331.270.920.860.671.330.810.861.222.661.63
EPS in Rs1.891.621.771.691.221.140.891.771.081.141.623.532.16

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 23, 2024, 2:26 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales89557176648496123161160157154
Expenses68496770607890113150150143139
Operating Profit226454561011101314
OPM %21%20%11%6%7%6%7%6%8%7%6%8%9%
Other Income0000110000111
Interest0012323333455
Depreciation1111111112222
Profit before tax1152312267578
Tax %33%-121%23%38%33%37%31%13%28%25%23%20%
Net Profit0241211245466
EPS in Rs0.642.064.851.792.401.101.612.665.486.975.037.378.45
Dividend Payout %-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)100.00%-75.00%100.00%-50.00%0.00%100.00%100.00%25.00%-20.00%50.00%
Change in YoY Net Profit Growth (%)0.00%-175.00%175.00%-150.00%50.00%100.00%0.00%-75.00%-45.00%70.00%

Godavari Drugs Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2014-2015 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:32%
5 Years:13%
3 Years:9%
TTM:-8%
Compounded Profit Growth
10 Years:14%
5 Years:36%
3 Years:11%
TTM:92%
Stock Price CAGR
10 Years:12%
5 Years:51%
3 Years:24%
1 Year:16%
Return on Equity
10 Years:14%
5 Years:15%
3 Years:15%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital888888888888
Reserves0267910111317222631
Borrowings228161619222830235758
Other Liabilities5313212427333636493138
Total Liabilities151535515663748491101121135
Fixed Assets78791315151422262527
CWIP0001012910918
Investments000000000000
Other Assets7727414347576168758790
Total Assets151535515663748491101121135

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +12-6-554461111318
Cash from Investing Activity +-1-2-0-2-3-3-2-7-1-5-9-13
Cash from Financing Activity +1067-2-0-100-6-4-6
Net Cash Flow0-00001-0-0011-0

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow0.000.00-2.00-12.00-11.00-15.00-17.00-22.00-20.00-12.00-47.00-45.00

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 Days322087126117152148137134126132138
Inventory Days1,484973846770100938455285762
Days Payable284179791081241711711441121217096
Cash Conversion Cycle1,2318149285638170787833119105
Working Capital Days147120951049511295888652122113
ROCE %9%8%32%16%17%11%12%12%18%18%12%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters56.13%56.13%56.36%56.92%56.92%53.12%53.12%53.16%53.16%53.16%53.16%53.16%
DIIs0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%
Public43.38%43.38%43.15%42.58%42.58%46.37%46.39%46.34%46.33%46.35%46.34%46.34%
No. of Shareholders5,3945,7506,0346,2325,9686,6516,5556,5617,0196,8947,0057,044

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)7.375.036.975.482.66
Diluted EPS (Rs.)7.375.036.975.482.66
Cash EPS (Rs.)10.027.619.227.114.20
Book Value[Excl.RevalReserv]/Share (Rs.)51.7444.3839.3532.3826.90
Book Value[Incl.RevalReserv]/Share (Rs.)51.7444.3839.3532.3826.90
Revenue From Operations / Share (Rs.)208.10211.97213.94162.90127.08
PBDIT / Share (Rs.)18.4914.0415.3613.598.45
PBIT / Share (Rs.)15.8411.4613.1111.976.91
PBT / Share (Rs.)9.196.559.327.583.04
Net Profit / Share (Rs.)7.375.036.965.482.66
PBDIT Margin (%)8.886.627.178.346.64
PBIT Margin (%)7.615.406.127.345.43
PBT Margin (%)4.413.094.354.652.39
Net Profit Margin (%)3.542.373.253.362.09
Return on Networth / Equity (%)14.2411.3217.7016.929.87
Return on Capital Employeed (%)22.6018.0822.6122.1815.91
Return On Assets (%)4.113.115.174.522.38
Long Term Debt / Equity (X)0.280.350.390.590.55
Total Debt / Equity (X)1.431.000.681.151.29
Asset Turnover Ratio (%)1.221.431.671.401.21
Current Ratio (X)1.081.181.291.341.19
Quick Ratio (X)0.820.911.111.050.84
Inventory Turnover Ratio (X)6.029.2210.375.814.52
Interest Coverage Ratio (X)2.832.694.063.092.19
Interest Coverage Ratio (Post Tax) (X)2.151.912.842.251.69
Enterprise Value (Cr.)123.0087.4567.3260.8933.35
EV / Net Operating Revenue (X)0.780.540.410.490.34
EV / EBITDA (X)8.838.275.825.955.24
MarketCap / Net Operating Revenue (X)0.440.350.300.280.09
Price / BV (X)1.801.711.661.410.42
Price / Net Operating Revenue (X)0.440.350.300.280.09
EarningsYield0.070.060.100.110.22

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Godavari Drugs Ltd as of November 23, 2024 is: 112.99

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, Godavari Drugs Ltd is Overvalued by 0.89% compared to the current share price 114.00

Intrinsic Value of Godavari Drugs Ltd as of November 23, 2024 is: 123.21

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, Godavari Drugs Ltd is Undervalued by 8.08% compared to the current share price 114.00

Last 5 Year EPS CAGR: 9.05%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (93.69 cr) and profit (3.85 cr) over the years.
  1. The stock has a low average ROCE of 14.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 102.42, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 134.92, which may not be favorable.
  4. The company has higher borrowings (23.42) compared to reserves (12.83), 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 Godavari Drugs Ltd:
    1. Net Profit Margin: 3.54%
      • 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: 22.6% (Industry Average ROCE: 16.4%)
      • 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%: 14.24% (Industry Average ROE: 16.92%)
      • 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): 2.15
      • 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: 0.82
      • 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: 12.9 (Industry average Stock P/E: 55.13)
      • 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: 1.43
      • 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

No data availabale for About the Company
INDUSTRYADDRESSCONTACT
Industry not foundAddress not foundContact not found
Management Data not Available

FAQ

What is the latest intrinsic value of Godavari Drugs Ltd?

The latest intrinsic value of Godavari Drugs Ltd as on 23 November 2024 is ₹112.99, which is 0.89% lower than the current market price of ₹114.00.

What is the Market Cap of Godavari Drugs Ltd?

The Market Cap of Godavari Drugs Ltd is 86.2 Cr..

What is the current Stock Price of Godavari Drugs Ltd as on 23 November 2024?

The current stock price of Godavari Drugs Ltd as on 23 November 2024 is 114.

What is the High / Low of Godavari Drugs Ltd stocks in FY 2024?

In FY 2024, the High / Low of Godavari Drugs Ltd stocks is 155/87.0.

What is the Stock P/E of Godavari Drugs Ltd?

The Stock P/E of Godavari Drugs Ltd is 12.9.

What is the Book Value of Godavari Drugs Ltd?

The Book Value of Godavari Drugs Ltd is 55.4.

What is the Dividend Yield of Godavari Drugs Ltd?

The Dividend Yield of Godavari Drugs Ltd is 0.00 %.

What is the ROCE of Godavari Drugs Ltd?

The ROCE of Godavari Drugs Ltd is 12.7 %.

What is the ROE of Godavari Drugs Ltd?

The ROE of Godavari Drugs Ltd is 15.5 %.

What is the Face Value of Godavari Drugs Ltd?

The Face Value of Godavari Drugs 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 Godavari Drugs 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