Fundamental Analysis of Kwality Pharmaceuticals Ltd

About the Company - Kwality Pharmaceuticals Ltd

Kwality Pharmaceuticals Ltd. is a Public Limited Listed company incorporated on 04/05/1983 and has its registered office in the State of Punjab, India. Company’s Corporate Identification Number(CIN) is L24232PB1983PLC005426 and registration number is 005426. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 456.13 Cr. and Equity Capital is Rs. 10.38 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Pharmaceuticals	Village Nagkalan, Amritsar Punjab 143601	cs@kwalitypharma.com http://www.kwalitypharma.com

Management
Name	Position Held
Mr. Ramesh Arora	Managing Director
Mr. Aditya Arora	WholeTime Director & CFO
Mr. Ajay Kumar Arora	Whole Time Director
Mrs. Anju Arora	Whole Time Director
Mrs. Geeta Arora	Whole Time Director
Mr. Kiran Kumar Verma	Independent Director
Mr. Pankaj Takkar	Independent Director
Mr. Prashanth Vellanki	Independent Director
Mr. Ravi Shanker Singh	Independent Director
Mr. Kartik Kapur	Independent Director

Basic Stock Data of Kwality Pharmaceuticals Ltd

Last Updated: July 26, 2024, 10:25 pm

Market Cap	544 Cr.
Current Price	524
High / Low	590/309
Stock P/E	18.6
Book Value	218
Dividend Yield	0.00 %
ROCE	15.9 %
ROE	13.7 %
Face Value	10.0
PEG Ratio	2.83

Data Source: screener.in

Competitors of Kwality Pharmaceuticals Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Murae Organisor Ltd	36.1 Cr.	1.46	3.10/0.90	722	2.26	0.00 %	0.79 %	0.13 %	2.00
Dipna Pharmachem Ltd	18.6 Cr.	7.73	24.1/7.46	17.0	15.6	0.00 %	8.49 %	4.47 %	10.0
Decipher Labs Ltd	18.5 Cr.	18.3	25.8/14.4		21.6	0.00 %	4.30 %	7.46 %	10.0
Coral Laboratories Ltd	255 Cr.	715	748/245	16.0	497	0.00 %	12.6 %	9.58 %	10.0
Concord Drugs Ltd	38.0 Cr.	38.0	61.5/28.2	90.6	33.8	0.00 %	4.54 %	1.29 %	10.0
Industry Average	22,359.87 Cr	1,365.96		61.90	207.02	0.34%	17.44%	17.03%	6.44

Kwality Pharmaceuticals Ltd Quarterly Results

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	120.19	183.71	88.19	64.04	70.22	55.96	56.01	68.80	67.45	69.65	78.10
Expenses	72.66	100.29	63.65	47.81	52.20	40.39	40.84	57.28	53.64	54.38	61.40
Operating Profit	47.53	83.42	24.54	16.23	18.02	15.57	15.17	11.52	13.81	15.27	16.70
OPM %	39.55%	45.41%	27.83%	25.34%	25.66%	27.82%	27.08%	16.74%	20.47%	21.92%	21.38%
Other Income	0.96	0.12	0.84	1.60	0.38	0.75	0.35	-15.07	0.40	0.23	0.62
Interest	0.68	0.71	0.50	1.03	1.22	1.18	1.95	1.67	2.19	2.41	2.73
Depreciation	2.06	2.65	3.19	2.75	3.13	3.83	3.54	4.42	4.78	4.88	4.81
Profit before tax	45.75	80.18	21.69	14.05	14.05	11.31	10.03	-9.64	7.24	8.21	9.78
Tax %	24.92%	25.59%	26.74%	25.27%	24.91%	20.07%	27.92%	23.65%	24.72%	23.75%	21.17%
Net Profit	34.35	59.66	15.89	10.51	10.55	9.05	7.23	-7.36	5.45	6.26	7.70
EPS in Rs	33.10	57.50	15.31	10.13	10.17	8.72	6.97	-7.09	5.25	6.03	7.42

Last Updated: July 11, 2024, 8:37 am

Kwality Pharmaceuticals Ltd Quarterly Chart

Kwality Pharmaceuticals Ltd Profit & Loss

Last Updated: July 10, 2024, 7:10 pm

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	38	62	60	52	76	95	137	165	138	261	456	251	262
Expenses	36	58	56	49	70	86	125	149	124	231	284	190	206
Operating Profit	2	3	4	4	6	9	12	15	14	29	172	61	56
OPM %	5%	5%	6%	7%	8%	9%	8%	9%	10%	11%	38%	24%	21%
Other Income	1	0	0	1	0	2	1	1	4	2	4	-14	-14
Interest	1	1	1	1	1	2	2	2	3	3	3	7	8
Depreciation	1	1	1	1	2	2	3	3	4	6	11	15	18
Profit before tax	1	2	2	2	3	6	8	11	11	22	162	26	16
Tax %	39%	27%	47%	29%	39%	41%	38%	31%	24%	29%	26%	24%
Net Profit	1	1	1	1	2	3	5	8	8	15	120	19	12
EPS in Rs	0.86	1.66	0.95	1.32	1.89	3.31	4.51	7.28	8.12	14.86	115.70	18.76	11.16
Dividend Payout %	0%	0%	0%	0%	0%	9%	0%	0%	0%	0%	0%	0%

Kwality Pharmaceuticals Ltd Profit & Loss Yearly Chart

Kwality Pharmaceuticals Ltd Growth

Compounded Sales Growth
10 Years:	18%
5 Years:	13%
3 Years:	6%
TTM:	22%

Compounded Profit Growth
10 Years:	41%
5 Years:	31%
3 Years:	24%
TTM:	-8%

Stock Price CAGR
10 Years:	%
5 Years:	63%
3 Years:	34%
1 Year:	51%

Return on Equity
10 Years:	30%
5 Years:	33%
3 Years:	34%
Last Year:	14%

Last Updated: July 24, 2024, 5:32 pm

Kwality Pharmaceuticals Ltd Balance Sheet

Last Updated: July 10, 2024, 7:10 pm

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	4	4	4	4	5	5	10	10	10	10	10	10	10
Reserves	7	8	13	15	18	21	21	28	37	52	172	192	203
Borrowings	10	6	6	8	13	19	26	28	35	41	54	90	91
Other Liabilities	11	11	12	10	17	27	41	40	53	65	106	71	54
Total Liabilities	32	29	35	38	52	72	98	107	135	169	343	364	358
Fixed Assets	9	10	11	11	11	16	19	28	42	56	91	120	135
CWIP	0	0	0	0	0	0	0	0	0	3	12	14	0
Investments	1	1	3	4	5	7	9	8	8	9	4	4	4
Other Assets	22	18	21	23	36	50	70	71	86	102	236	226	220
Total Assets	32	29	35	38	52	72	98	107	135	169	343	364	358

Kwality Pharmaceuticals Ltd Reserves and Borrowings Chart

Kwality Pharmaceuticals Ltd 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	8	-0	1	-3	4	-0	12	6	26	59	42	43
Cash from Investing Activity	-1	-4	-1	-2	-7	-6	-11	-17	-23	-63	-48	-26
Cash from Financing Activity	-5	3	1	5	5	5	-2	12	1	6	1	-17
Net Cash Flow	2	-2	0	0	1	-1	-1	1	4	2	-5	-0

Kwality Pharmaceuticals Ltd Financial Efficiency Indicators

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Debtor Days	82	42	41	63	95	87	99	86	80	53	57	107
Inventory Days	114	33	58	61	54	72	54	34	94	38	97	310
Days Payable	93	31	58	40	61	67	79	52	96	58	63	117
Cash Conversion Cycle	104	44	41	85	89	92	74	68	78	33	91	300
Working Capital Days	102	35	60	81	87	79	76	62	99	48	89	212
ROCE %	13%	14%	12%	11%	15%	19%	19%	21%	18%	26%	97%	18%

Kwality Pharmaceuticals Ltd Financial Efficiency Indicators Chart

Kwality Pharmaceuticals Ltd Share Holding Pattern

Month	Mar 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoters	54.13%	54.24%	54.24%	54.43%	54.45%	54.44%	54.44%	54.73%	54.73%	54.76%	54.76%	54.82%
DIIs	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.01%	0.01%	0.01%	0.01%	0.01%	0.00%
Public	45.87%	45.76%	45.76%	45.57%	45.55%	45.56%	45.54%	45.25%	45.25%	45.22%	45.22%	45.17%
No. of Shareholders	148	168	379	581	1,049	4,198	5,376	6,211	6,943	6,291	5,786	5,695

Kwality Pharmaceuticals Ltd Shareholding Pattern Chart

No. of Kwality Pharmaceuticals Ltd Shareholders

This stock is not held by any mutual fund

Kwality Pharmaceuticals Ltd ROCE Trend

Kwality Pharmaceuticals Ltd EPS Trend

Kwality Pharmaceuticals Ltd 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.)	22.76	18.16	115.64	14.60	8.02
Diluted EPS (Rs.)	22.76	18.16	115.64	14.60	8.02
Cash EPS (Rs.)	41.61	33.00	125.89	20.61	12.18
Book Value[Excl.RevalReserv]/Share (Rs.)	214.51	191.08	172.50	56.91	42.56
Book Value[Incl.RevalReserv]/Share (Rs.)	214.51	191.85	173.27	57.68	43.33
Revenue From Operations / Share (Rs.)	296.03	241.93	439.64	252.51	134.25
PBDIT / Share (Rs.)	65.67	60.79	168.82	29.33	17.20
PBIT / Share (Rs.)	46.82	46.38	158.52	23.07	12.93
PBT / Share (Rs.)	29.97	24.65	155.71	20.50	10.52
Net Profit / Share (Rs.)	22.76	18.58	115.59	14.35	7.91
NP After MI And SOA / Share (Rs.)	22.93	18.67	115.64	14.60	8.02
PBDIT Margin (%)	22.18	25.12	38.39	11.61	12.81
PBIT Margin (%)	15.81	19.16	36.05	9.13	9.63
PBT Margin (%)	10.12	10.18	35.41	8.11	7.83
Net Profit Margin (%)	7.68	7.68	26.29	5.68	5.89
NP After MI And SOA Margin (%)	7.74	7.71	26.30	5.78	5.97
Return on Networth / Equity (%)	10.61	9.69	66.53	25.09	18.39
Return on Capital Employeed (%)	20.04	21.13	78.21	27.21	20.65
Return On Assets (%)	6.03	5.47	35.23	9.10	6.26
Long Term Debt / Equity (X)	0.08	0.13	0.11	0.30	0.22
Total Debt / Equity (X)	0.43	0.45	0.24	0.57	0.69
Asset Turnover Ratio (%)	0.82	0.72	1.79	1.73	1.16
Current Ratio (X)	1.60	1.65	1.75	1.35	1.31
Quick Ratio (X)	1.08	0.95	1.34	1.13	0.98
Inventory Turnover Ratio (X)	1.87	1.62	5.64	8.31	5.46
Interest Coverage Ratio (X)	6.56	10.48	60.05	11.39	7.14
Interest Coverage Ratio (Post Tax) (X)	3.96	6.95	42.11	6.57	4.28
Enterprise Value (Cr.)	515.35	400.57	630.81	85.72	55.35
EV / Net Operating Revenue (X)	1.68	1.60	1.38	0.32	0.39
EV / EBITDA (X)	7.56	6.35	3.60	2.82	3.10
MarketCap / Net Operating Revenue (X)	1.38	1.27	1.32	0.22	0.19
Price / BV (X)	1.89	1.60	3.34	0.96	0.58
Price / Net Operating Revenue (X)	1.38	1.27	1.32	0.22	0.19
EarningsYield	0.05	0.06	0.19	0.26	0.31

Kwality Pharmaceuticals Ltd Profitability Ratios (%)

Kwality Pharmaceuticals Ltd Liquidity Ratios

Kwality Pharmaceuticals Ltd Liquidity Ratios (%)

Kwality Pharmaceuticals Ltd Interest Coverage Ratios (%)

Kwality Pharmaceuticals Ltd Valuation Ratios

Fair Value

Fair Value: 566.62

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.

Undervalued: 8.13% compared to the current price 524

Intrinsic Value: 603.83

Calculation basis:

Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 15.23% compared to the current price 524

Last 5 Year EPS CAGR: 6.57%

*Investments are subject to market risks

Strength and Weakness of Kwality Pharmaceuticals Ltd Stock

Strength	Weakness
The stock has a high average ROCE of 23.58%, which is a positive sign. The company has higher reserves (66.08 cr) compared to borrowings (35.33 cr), indicating strong financial stability. The company has shown consistent growth in sales (157.92 cr) and profit (20.92 cr) over the years.	The stock has a high average Working Capital Days of 85.83, which may not be favorable. The stock has a high average Cash Conversion Cycle of 91.58, which may not be favorable.

FAQ

What is the latest fair value of Kwality Pharmaceuticals Ltd?

The latest fair value of Kwality Pharmaceuticals Ltd is ₹566.62.

What is the Market Cap of Kwality Pharmaceuticals Ltd?

The Market Cap of Kwality Pharmaceuticals Ltd is 544 Cr..

What is the current Stock Price of Kwality Pharmaceuticals Ltd as on 27 July 2024?

The current stock price of Kwality Pharmaceuticals Ltd as on 27 July 2024 is 524.

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

In FY 2024, the High / Low of Kwality Pharmaceuticals Ltd stocks is 590/309.

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

The Stock P/E of Kwality Pharmaceuticals Ltd is 18.6.

What is the Book Value of Kwality Pharmaceuticals Ltd?

The Book Value of Kwality Pharmaceuticals Ltd is 218.

What is the Dividend Yield of Kwality Pharmaceuticals Ltd?

The Dividend Yield of Kwality Pharmaceuticals Ltd is 0.00 %.

What is the ROCE of Kwality Pharmaceuticals Ltd?

The ROCE of Kwality Pharmaceuticals Ltd is 15.9 %.

What is the ROE of Kwality Pharmaceuticals Ltd?

The ROE of Kwality Pharmaceuticals Ltd is 13.7 %.

What is the Face Value of Kwality Pharmaceuticals Ltd?

The Face Value of Kwality Pharmaceuticals Ltd is 10.0.