Godavari Drugs Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 23, 2024, 9:12 pm

Market Cap	86.1 Cr.
Current Price	114
High / Low	155/87.0
Stock P/E	12.9
Book Value	55.4
Dividend Yield	0.00 %
ROCE	14.4 %
ROE	15.5 %
Face Value	10.0
PEG Ratio	1.43

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for Godavari Drugs Ltd

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	3,314 Cr.	304	390/128	62.9	20.5	0.22 %	45.0 %	33.8 %	1.00
Gujarat Terce Laboratories Ltd	63.0 Cr.	84.8	94.9/26.6	24.1	11.9	0.00 %	9.72 %	3.44 %	10.0
Gujarat Inject (Kerala) Ltd	37.6 Cr.	25.7	25.7/8.74	48.9	6.64	0.00 %	2.65 %	2.08 %	10.0
Godavari Drugs Ltd	86.1 Cr.	114	155/87.0	12.9	55.4	0.00 %	14.4 %	15.5 %	10.0
Glenmark Life Sciences Ltd	12,188 Cr.	994	1,335/645	28.8	207	2.26 %	28.1 %	21.1 %	2.00
Industry Average	18,990.42 Cr	1,177.87		55.53	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	44.40	38.67	33.76	44.28	42.55	40.55	39.16	37.37	35.42	39.54	43.11	38.64	32.21
Expenses	41.31	35.76	31.17	41.58	40.15	37.98	36.89	34.69	33.17	36.47	39.59	34.17	28.98
Operating Profit	3.09	2.91	2.59	2.70	2.40	2.57	2.27	2.68	2.25	3.07	3.52	4.47	3.23
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 Income	0.02	0.09	0.05	0.12	0.07	0.13	0.30	0.39	0.45	0.00	-0.01	0.08	0.77
Interest	0.71	0.79	0.73	0.62	0.74	1.06	1.10	1.03	1.11	1.30	1.27	1.23	1.44
Depreciation	0.42	0.43	0.43	0.42	0.46	0.47	0.51	0.50	0.47	0.49	0.50	0.53	0.55
Profit before tax	1.98	1.78	1.48	1.78	1.27	1.17	0.96	1.54	1.12	1.28	1.74	2.79	2.01
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 Profit	1.42	1.22	1.33	1.27	0.92	0.86	0.67	1.33	0.81	0.86	1.22	2.66	1.63
EPS in Rs	1.89	1.62	1.77	1.69	1.22	1.14	0.89	1.77	1.08	1.14	1.62	3.53	2.16

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 23, 2024, 2:26 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	TTM
Sales	8	9	55	71	76	64	84	96	123	161	160	157	154
Expenses	6	8	49	67	70	60	78	90	113	150	150	143	139
Operating Profit	2	2	6	4	5	4	5	6	10	11	10	13	14
OPM %	21%	20%	11%	6%	7%	6%	7%	6%	8%	7%	6%	8%	9%
Other Income	0	0	0	0	1	1	0	0	0	0	1	1	1
Interest	0	0	1	2	3	2	3	3	3	3	4	5	5
Depreciation	1	1	1	1	1	1	1	1	1	2	2	2	2
Profit before tax	1	1	5	2	3	1	2	2	6	7	5	7	8
Tax %	33%	-121%	23%	38%	33%	37%	31%	13%	28%	25%	23%	20%
Net Profit	0	2	4	1	2	1	1	2	4	5	4	6	6
EPS in Rs	0.64	2.06	4.85	1.79	2.40	1.10	1.61	2.66	5.48	6.97	5.03	7.37	8.45
Dividend Payout %	-0%	-0%	-0%	-0%	-0%	-0%	-0%	-0%	-0%	-0%	-0%	-0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
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:	9%
5 Years:	49%
3 Years:	27%
1 Year:	21%

Return on Equity
10 Years:	14%
5 Years:	15%
3 Years:	15%
Last Year:	16%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 1:36 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	8	8	8	8	8	8	8	8	8	8	8	8	8
Reserves	0	2	6	7	9	10	11	13	17	22	26	31	34
Borrowings	2	2	8	16	16	19	22	28	30	23	36	58	59
Other Liabilities	5	3	13	21	24	27	33	36	36	49	52	38	27
Total Liabilities	15	15	35	51	56	63	74	84	91	101	121	135	127
Fixed Assets	7	8	7	9	13	15	15	14	22	26	25	27	34
CWIP	0	0	0	1	0	1	2	9	1	0	9	18	18
Investments	0	0	0	0	0	0	0	0	0	0	0	0	0
Other Assets	7	7	27	41	43	47	57	61	68	75	87	90	75
Total Assets	15	15	35	51	56	63	74	84	91	101	121	135	127

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 +	1	2	-6	-5	5	4	4	6	1	11	13	18
Cash from Investing Activity +	-1	-2	-0	-2	-3	-3	-2	-7	-1	-5	-9	-13
Cash from Financing Activity +	1	0	6	7	-2	-0	-1	0	0	-6	-4	-6
Net Cash Flow	0	-0	0	0	0	1	-0	-0	0	1	1	-0

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	0.00	0.00	-2.00	-12.00	-11.00	-15.00	-17.00	-22.00	-20.00	-12.00	-26.00	-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

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	32	20	87	126	117	152	148	137	134	126	132	138
Inventory Days	1,484	973	84	67	70	100	93	84	55	28	57	62
Days Payable	284	179	79	108	124	171	171	144	112	121	70	96
Cash Conversion Cycle	1,231	814	92	85	63	81	70	78	78	33	119	105
Working Capital Days	147	120	95	104	95	112	95	88	86	52	122	113
ROCE %	9%	8%	32%	16%	17%	11%	12%	12%	18%	18%	12%	13%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	56.13%	56.13%	56.36%	56.92%	56.92%	53.12%	53.12%	53.16%	53.16%	53.16%	53.16%	53.16%
DIIs	0.50%	0.50%	0.50%	0.50%	0.50%	0.50%	0.50%	0.50%	0.50%	0.50%	0.50%	0.50%
Public	43.38%	43.38%	43.15%	42.58%	42.58%	46.37%	46.39%	46.34%	46.33%	46.35%	46.34%	46.34%
No. of Shareholders	5,394	5,750	6,034	6,232	5,968	6,651	6,555	6,561	7,019	6,894	7,005	7,044

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	7.37	5.03	6.97	5.48	2.66
Diluted EPS (Rs.)	7.37	5.03	6.97	5.48	2.66
Cash EPS (Rs.)	10.02	7.61	9.22	7.11	4.20
Book Value[Excl.RevalReserv]/Share (Rs.)	51.74	44.38	39.35	32.38	26.90
Book Value[Incl.RevalReserv]/Share (Rs.)	51.74	44.38	39.35	32.38	26.90
Revenue From Operations / Share (Rs.)	208.10	211.97	213.94	162.90	127.08
PBDIT / Share (Rs.)	18.49	14.04	15.36	13.59	8.45
PBIT / Share (Rs.)	15.84	11.46	13.11	11.97	6.91
PBT / Share (Rs.)	9.19	6.55	9.32	7.58	3.04
Net Profit / Share (Rs.)	7.37	5.03	6.96	5.48	2.66
PBDIT Margin (%)	8.88	6.62	7.17	8.34	6.64
PBIT Margin (%)	7.61	5.40	6.12	7.34	5.43
PBT Margin (%)	4.41	3.09	4.35	4.65	2.39
Net Profit Margin (%)	3.54	2.37	3.25	3.36	2.09
Return on Networth / Equity (%)	14.24	11.32	17.70	16.92	9.87
Return on Capital Employeed (%)	22.60	18.08	22.61	22.18	15.91
Return On Assets (%)	4.11	3.11	5.17	4.52	2.38
Long Term Debt / Equity (X)	0.28	0.35	0.39	0.59	0.55
Total Debt / Equity (X)	1.43	1.00	0.68	1.15	1.29
Asset Turnover Ratio (%)	1.22	1.43	1.67	1.40	1.21
Current Ratio (X)	1.08	1.18	1.29	1.34	1.19
Quick Ratio (X)	0.82	0.91	1.11	1.05	0.84
Inventory Turnover Ratio (X)	6.02	9.22	10.37	5.81	4.52
Interest Coverage Ratio (X)	2.83	2.69	4.06	3.09	2.19
Interest Coverage Ratio (Post Tax) (X)	2.15	1.91	2.84	2.25	1.69
Enterprise Value (Cr.)	123.00	87.45	67.32	60.89	33.35
EV / Net Operating Revenue (X)	0.78	0.54	0.41	0.49	0.34
EV / EBITDA (X)	8.83	8.27	5.82	5.95	5.24
MarketCap / Net Operating Revenue (X)	0.44	0.35	0.30	0.28	0.09
Price / BV (X)	1.80	1.71	1.66	1.41	0.42
Price / Net Operating Revenue (X)	0.44	0.35	0.30	0.28	0.09
EarningsYield	0.07	0.06	0.10	0.11	0.22

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Godavari Drugs Ltd as of December 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 December 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 December 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 December 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

Strength	Weakness
The company has shown consistent growth in sales (93.69 cr) and profit (3.85 cr) over the years.	The stock has a low average ROCE of 14.83%, which may not be favorable. The stock has a high average Working Capital Days of 102.42, which may not be favorable. The stock has a high average Cash Conversion Cycle of 134.92, which may not be favorable. The company has higher borrowings (24.54) compared to reserves (14.46), 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: 16.07%)
  - 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: 15.77%)
  - 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: 45.65)
  - 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

Godavari Drugs Ltd. is a Public Limited Listed company incorporated on 02/12/1987 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L24230TG1987PLC008016 and registration number is 008016. 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. 161.11 Cr. and Equity Capital is Rs. 7.53 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Pharmaceuticals	1-8-303/34, Secunderabad Telangana 500003	info@godavaridrugs.com http://www.godavaridrugs.com

Management
Name	Position Held
Mr. Ghanshyam Jaju	Chairman
Mr. Mukund Kakani	Managing Director
Mr. Mohit Jaju	WholeTime Director & CFO
Mr. Mahendra Bhalerao	Ind. Non-Executive Director
Mr. Dinesh Udpa	Ind. Non-Executive Director
Mr. Syed Anis Hussain	Ind. Non-Executive Director
Mrs. Vimala Behram Madon	Ind. Non-Executive Director

FAQ

What is the latest intrinsic value of Godavari Drugs Ltd?

The latest intrinsic value of Godavari Drugs Ltd as on 23 December 2024 is ₹112.99, which is 0.89% lower than the current market price of ₹114.00. The stock has a market capitalization of 86.1 Cr. and recorded a high/low of 155/87.0 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹34 Cr and total liabilities of ₹127 Cr.

What is the Market Cap of Godavari Drugs Ltd?

The Market Cap of Godavari Drugs Ltd is 86.1 Cr..

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

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

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

In FY 2024-2025, 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 14.4 %.

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.