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Last Updated on: 05 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Indoco Remedies Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 5, 2024, 12:33 am

Market Cap 3,085 Cr.
Current Price 335
High / Low417/286
Stock P/E46.1
Book Value 120
Dividend Yield0.45 %
ROCE10.4 %
ROE8.33 %
Face Value 2.00
PEG Ratio1.38

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

View Share Price Target for Indoco Remedies Ltd

Competitors of Indoco Remedies Ltd

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

All Competitor Stocks of Indoco Remedies Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales332305387387358409408433399428426482459
Expenses272250300300285329337345337363365410397
Operating Profit60558786738171886265617163
OPM %18%18%22%22%21%20%18%20%16%15%14%15%14%
Other Income021100100004-6
Interest65434345798810
Depreciation17192219191820161718202124
Profit before tax38346165516048673839344623
Tax %33%26%35%36%35%32%20%26%26%34%29%24%31%
Net Profit25254042334039502826243516
EPS in Rs2.752.714.304.523.584.394.195.403.052.802.653.811.77

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthJun 2006Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2416297318541,0051,0711,0419681,1071,2421,5411,6691,796
Expenses1985376106898349149068929831,0171,2131,3811,536
Operating Profit439312016617115713577123225328288260
OPM %18%15%16%19%17%15%13%8%11%18%21%17%14%
Other Income1212214562321-1
Interest622191112624212622142535
Depreciation6243147616368727173797183
Profit before tax434972110999148-929132237193142
Tax %27%12%20%24%17%15%15%69%16%30%35%26%
Net Profit31435883827741-32493155142101
EPS in Rs3.564.646.298.998.898.364.47-0.312.6210.1016.8015.4411.03
Dividend Payout %23%24%22%18%18%19%22%-95%11%15%13%15%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)34.88%43.10%-1.20%-6.10%-46.75%-107.32%900.00%287.50%66.67%-8.39%
Change in YoY Net Profit Growth (%)0.00%8.22%-44.31%-4.89%-40.66%-60.56%1007.32%-612.50%-220.83%-75.05%

Indoco Remedies Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2013-2014 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:13%
3 Years:14%
TTM:8%
Compounded Profit Growth
10 Years:4%
5 Years:104%
3 Years:-2%
TTM:-48%
Stock Price CAGR
10 Years:2%
5 Years:19%
3 Years:-9%
1 Year:1%
Return on Equity
10 Years:11%
5 Years:12%
3 Years:13%
Last Year:8%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:28 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital181818181818181818181818
Reserves3964395005586336576426617518861,0101,091
Borrowings1209297140280282296262267257333672
Other Liabilities157180230224266281301330279325297363
Total Liabilities6927298469411,1971,2381,2581,2721,3151,4861,6582,145
Fixed Assets322325340374440489468590570555678954
CWIP38446355911361855168122114125
Investments0001600000029
Other Assets3323604434966666136056316778098641,057
Total Assets6927298469411,1971,2381,2581,2721,3151,4861,6582,145

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 69991091128912313212382174179157
Cash from Investing Activity -43-41-88-111-171-135-104-56-67-121-208-433
Cash from Financing Activity -24-59-20-2132-39-16-64-30-4423280
Net Cash Flow2-11-050-51123-148-74

Free Cash Flow

MonthJun 2006Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow43.00-27.0028.0069.0031.00-123.00-147.00-219.00-139.00-42.0071.00-45.00

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 Days746966697473746969707782
Inventory Days130148181174189203209230245248228230
Days Payable959514613716615719518311710786100
Cash Conversion Cycle1081221021059711988116197212219212
Working Capital Days7473788081776457107113120124
ROCE %17%21%17%12%7%1%6%16%23%17%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters58.69%58.69%58.69%58.69%58.68%58.68%58.69%58.73%58.75%58.75%58.72%58.76%
FIIs2.43%1.62%1.15%1.17%1.19%1.23%1.55%1.58%1.59%1.69%1.92%1.48%
DIIs17.69%17.78%18.27%18.07%17.97%18.07%18.06%17.93%17.79%19.56%19.41%18.67%
Public21.19%21.91%21.89%22.07%22.16%22.00%21.69%21.75%21.87%20.00%19.92%21.07%
Others0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.03%
No. of Shareholders34,74637,27937,86338,49838,07235,71334,73135,43136,58832,60033,20134,511

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund2,744,5590.2387.221,362,7002024-10-04101.41%
ICICI Prudential Smallcap Fund2,090,6881.1166.441,362,7002024-10-0453.42%
Nippon India Pharma Fund1,834,9241.0558.311,362,7002024-10-0434.65%
Franklin India Smaller Companies Fund1,362,7000.4543.311,362,7002024-10-040%
DSP Healthcare Fund1,312,3242.4341.711,362,7002024-10-04-3.7%
HDFC Capital Builder Value Fund - Regular Plan673,5890.3821.411,362,7002024-10-04-50.57%
Quant Small Cap Fund609,7930.219.381,362,7002024-10-04-55.25%
Mahindra Manulife Flexi Cap Fund336,9281.0510.711,362,7002024-10-04-75.27%
Quant Healthcare Fund320,2956.310.181,362,7002024-10-04-76.5%
UTI Healthcare Fund271,6981.138.631,362,7002024-10-04-80.06%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)10.5315.4416.8010.102.62
Diluted EPS (Rs.)10.5115.4216.8010.102.62
Cash EPS (Rs.)20.4923.1025.3718.0310.30
Book Value[Excl.RevalReserv]/Share (Rs.)120.44111.5898.1783.4573.75
Book Value[Incl.RevalReserv]/Share (Rs.)120.44111.5898.1783.4573.75
Revenue From Operations / Share (Rs.)197.10181.07167.20134.73120.08
PBDIT / Share (Rs.)27.5731.3035.7724.6813.63
PBIT / Share (Rs.)17.6023.6427.2116.745.95
PBT / Share (Rs.)14.7320.9225.6714.323.10
Net Profit / Share (Rs.)10.5215.4416.8010.102.62
NP After MI And SOA / Share (Rs.)10.6815.4416.8010.102.62
PBDIT Margin (%)13.9817.2821.3918.3111.35
PBIT Margin (%)8.9313.0516.2712.424.95
PBT Margin (%)7.4711.5515.3510.632.58
Net Profit Margin (%)5.338.5210.047.492.17
NP After MI And SOA Margin (%)5.418.5210.047.492.17
Return on Networth / Equity (%)8.8713.8317.1112.093.54
Return on Capital Employeed (%)10.5917.6523.6216.986.74
Return On Assets (%)4.598.5710.417.071.89
Long Term Debt / Equity (X)0.320.130.100.120.14
Total Debt / Equity (X)0.600.300.260.270.29
Asset Turnover Ratio (%)0.951.061.100.950.87
Current Ratio (X)1.561.901.821.531.23
Quick Ratio (X)0.981.141.090.940.77
Inventory Turnover Ratio (X)1.431.291.441.361.34
Dividend Payout Ratio (NP) (%)0.0014.578.920.0011.46
Dividend Payout Ratio (CP) (%)0.009.745.910.002.91
Earning Retention Ratio (%)0.0085.4391.080.0088.54
Cash Earning Retention Ratio (%)0.0090.2694.090.0097.09
Interest Coverage Ratio (X)6.6811.5223.3110.214.79
Interest Coverage Ratio (Post Tax) (X)3.256.6811.955.181.92
Enterprise Value (Cr.)3677.003301.123694.362857.472094.15
EV / Net Operating Revenue (X)2.021.982.402.301.89
EV / EBITDA (X)14.4711.4511.2112.5716.67
MarketCap / Net Operating Revenue (X)1.671.802.252.141.74
Retention Ratios (%)0.0085.4291.070.0088.53
Price / BV (X)2.732.923.843.462.84
Price / Net Operating Revenue (X)1.671.802.252.141.74
EarningsYield0.030.040.040.030.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Indoco Remedies Ltd as of October 5, 2024 is: ₹462.89

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 October 5, 2024, Indoco Remedies Ltd is Undervalued by 38.18% compared to the current share price ₹335.00

Intrinsic Value of Indoco Remedies Ltd as of October 5, 2024 is: ₹617.07

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 October 5, 2024, Indoco Remedies Ltd is Undervalued by 84.20% compared to the current share price ₹335.00

Last 5 Year EPS CAGR: 33.31%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (685.33 cr) compared to borrowings (258.17 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (263.92 cr) and profit (95.08 cr) over the years.
  1. The stock has a low average ROCE of 12.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 87.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 141.42, 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 Indoco Remedies Ltd:
    1. Net Profit Margin: 5.33%
      • 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: 10.59% (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%: 8.87% (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): 3.25
      • 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: 0.98
      • 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: 46.1 (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: 0.6
      • 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

Indoco Remedies Ltd. is a Public Limited Listed company incorporated on 23/08/1947 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L85190MH1947PLC005913 and registration number is 005913. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 1539.72 Cr. and Equity Capital is Rs. 18.43 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsIndoco House, 166, CST Road, Kalina, Mumbai Maharashtra 400098compliance.officer@indoco.com
http://www.indoco.com
Management
NamePosition Held
Mr. Suresh G KareChairman
Ms. Aditi PanandikarManaging Director
Mr. Sundeep V BambolkarJoint Managing Director
Dr. Anand NadkarniNon Executive Director
Mr. Satish ShenoyIndependent Director
Mr. Ajay MulgaokarIndependent Director
Dr.(Ms.) Vasudha V KamatIndependent Director
Mr. Abhijit Y GoreIndependent Director

FAQ

What is the latest fair value of Indoco Remedies Ltd?

The latest fair value of Indoco Remedies Ltd is ₹462.89.

What is the Market Cap of Indoco Remedies Ltd?

The Market Cap of Indoco Remedies Ltd is 3,085 Cr..

What is the current Stock Price of Indoco Remedies Ltd as on 05 October 2024?

The current stock price of Indoco Remedies Ltd as on 05 October 2024 is ₹335.

What is the High / Low of Indoco Remedies Ltd stocks in FY 2024?

In FY 2024, the High / Low of Indoco Remedies Ltd stocks is 417/286.

What is the Stock P/E of Indoco Remedies Ltd?

The Stock P/E of Indoco Remedies Ltd is 46.1.

What is the Book Value of Indoco Remedies Ltd?

The Book Value of Indoco Remedies Ltd is 120.

What is the Dividend Yield of Indoco Remedies Ltd?

The Dividend Yield of Indoco Remedies Ltd is 0.45 %.

What is the ROCE of Indoco Remedies Ltd?

The ROCE of Indoco Remedies Ltd is 10.4 %.

What is the ROE of Indoco Remedies Ltd?

The ROE of Indoco Remedies Ltd is 8.33 %.

What is the Face Value of Indoco Remedies Ltd?

The Face Value of Indoco Remedies Ltd is 2.00.

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 Indoco Remedies 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