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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

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.
INDUSTRYADDRESSCONTACT
PharmaceuticalsVillage Nagkalan, Amritsar Punjab 143601cs@kwalitypharma.com
http://www.kwalitypharma.com
Management
NamePosition Held
Mr. Ramesh AroraManaging Director
Mr. Aditya AroraWholeTime Director & CFO
Mr. Ajay Kumar AroraWhole Time Director
Mrs. Anju AroraWhole Time Director
Mrs. Geeta AroraWhole Time Director
Mr. Kiran Kumar VermaIndependent Director
Mr. Pankaj TakkarIndependent Director
Mr. Prashanth VellankiIndependent Director
Mr. Ravi Shanker SinghIndependent Director
Mr. Kartik KapurIndependent Director

Basic Stock Data of Kwality Pharmaceuticals Ltd

Last Updated: May 30, 2024, 6:30 am

Market Cap 553 Cr.
Current Price 533
High / Low545/250
Stock P/E18.9
Book Value 218
Dividend Yield0.00 %
ROCE15.9 %
ROE13.7 %
Face Value 10.0
PEG Ratio2.88

Competitors of Kwality Pharmaceuticals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Pharmaids Pharmaceuticals Ltd 210 Cr. 59.679.2/28.5 9.600.00 %64.4 %49.1 % 10.0
J B Chemicals & Pharmaceuticals Ltd 26,042 Cr. 1,6791,940/95847.1 1880.53 %25.1 %20.4 % 1.00
Lyka Labs Ltd 364 Cr. 110144/92.4 20.60.00 %3.78 %6.32 % 10.0
Vivimed Labs Ltd 41.0 Cr. 4.956.00/4.85 21.30.00 %51.5 %163 % 2.00
Ami Organics Ltd 4,532 Cr. 1,2291,389/1,00476.1 1830.24 %16.0 %9.39 % 10.0
Industry Average6,237.80 Cr616.5124.6484.500.15%32.16%49.64%6.60

Kwality Pharmaceuticals Ltd Quarterly Results

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales120.19183.7188.1964.0470.2255.9656.0168.8067.4569.6578.10
Expenses72.66100.2963.6547.8152.2040.3940.8457.2853.6454.3861.40
Operating Profit47.5383.4224.5416.2318.0215.5715.1711.5213.8115.2716.70
OPM %39.55%45.41%27.83%25.34%25.66%27.82%27.08%16.74%20.47%21.92%21.38%
Other Income0.960.120.841.600.380.750.35-15.070.400.230.62
Interest0.680.710.501.031.221.181.951.672.192.412.73
Depreciation2.062.653.192.753.133.833.544.424.784.884.81
Profit before tax45.7580.1821.6914.0514.0511.3110.03-9.647.248.219.78
Tax %24.92%25.59%26.74%25.27%24.91%20.07%27.92%23.65%24.72%23.75%21.17%
Net Profit34.3559.6615.8910.5110.559.057.23-7.365.456.267.70
EPS in Rs33.1057.5015.3110.1310.178.726.97-7.095.256.037.42

Last Updated: May 7, 2024, 9:51 am

Kwality Pharmaceuticals Ltd Quarterly Chart

Kwality Pharmaceuticals Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales386260527695137165138261456251262
Expenses365856497086125149124231284190206
Operating Profit234469121514291726156
OPM %5%5%6%7%8%9%8%9%10%11%38%24%21%
Other Income10010211424-14-14
Interest1111122233378
Depreciation1111223346111518
Profit before tax12223681111221622616
Tax %39%27%47%29%39%41%38%31%24%29%26%24%
Net Profit111123588151201912
EPS in Rs0.861.660.951.321.893.314.517.288.1214.86115.7018.7611.16
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:15%
5 Years:13%
3 Years:22%
TTM:15%
Compounded Profit Growth
10 Years:39%
5 Years:47%
3 Years:56%
TTM:-24%
Stock Price CAGR
10 Years:%
5 Years:62%
3 Years:102%
1 Year:40%
Return on Equity
10 Years:35%
5 Years:41%
3 Years:45%
Last Year:16%

Last Updated: April 17, 2024, 8:06 am

Kwality Pharmaceuticals Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital44445510101010101010
Reserves781315182121283752172192203
Borrowings10668131926283541549091
Other Liabilities111112101727414053651067154
Total Liabilities32293538527298107135169343364358
Fixed Assets910111111161928425691120135
CWIP000000000312140
Investments1134579889444
Other Assets221821233650707186102236226220
Total Assets32293538527298107135169343364358

Kwality Pharmaceuticals Ltd Reserves and Borrowings Chart

Kwality Pharmaceuticals Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 08-01-34-0126265942
Cash from Investing Activity -1-1-4-1-2-7-6-11-17-23-63-48
Cash from Financing Activity 1-531555-212161
Net Cash Flow-02-2001-1-1142-5

Kwality Pharmaceuticals Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days8242416395879986805357107
Inventory Days11433586154725434943897310
Days Payable9331584061677952965863117
Cash Conversion Cycle10444418589927468783391300
Working Capital Days10235608187797662994889212
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

MonthMar 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters54.13%54.24%54.24%54.43%54.45%54.44%54.44%54.73%54.73%54.76%54.76%54.82%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.01%0.01%0.01%0.01%0.00%
Public45.87%45.76%45.76%45.57%45.55%45.56%45.54%45.25%45.25%45.22%45.22%45.17%
No. of Shareholders1481683795811,0494,1985,3766,2116,9436,2915,7865,695

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

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)18.16115.6414.608.027.28
Diluted EPS (Rs.)18.16115.6414.608.027.28
Cash EPS (Rs.)33.00125.8920.6112.1810.29
Book Value[Excl.RevalReserv]/Share (Rs.)191.08172.5056.9142.5634.23
Book Value[Incl.RevalReserv]/Share (Rs.)191.85173.2757.6843.3335.00
Revenue From Operations / Share (Rs.)241.93439.64252.51134.25160.26
PBDIT / Share (Rs.)60.79168.8229.3317.2015.72
PBIT / Share (Rs.)46.38158.5223.0712.9312.72
PBT / Share (Rs.)24.65155.7120.5010.5210.51
Net Profit / Share (Rs.)18.58115.5914.357.917.28
NP After MI And SOA / Share (Rs.)18.67115.6414.608.027.28
PBDIT Margin (%)25.1238.3911.6112.819.80
PBIT Margin (%)19.1636.059.139.637.93
PBT Margin (%)10.1835.418.117.836.56
Net Profit Margin (%)7.6826.295.685.894.54
NP After MI And SOA Margin (%)7.7126.305.785.974.54
Return on Networth / Equity (%)9.6966.5325.0918.3920.69
Return on Capital Employeed (%)21.1378.2127.2120.6529.61
Return On Assets (%)5.4735.239.106.267.16
Long Term Debt / Equity (X)0.130.110.300.220.20
Total Debt / Equity (X)0.450.240.570.690.72
Asset Turnover Ratio (%)0.721.791.731.161.63
Current Ratio (X)1.651.751.351.311.24
Quick Ratio (X)0.951.341.130.981.05
Inventory Turnover Ratio (X)1.625.648.315.468.68
Interest Coverage Ratio (X)10.4860.0511.397.147.14
Interest Coverage Ratio (Post Tax) (X)6.9542.116.574.284.31
Enterprise Value (Cr.)400.57630.8185.7255.3562.38
EV / Net Operating Revenue (X)1.601.380.320.390.37
EV / EBITDA (X)6.353.602.823.103.82
MarketCap / Net Operating Revenue (X)1.271.320.220.190.23
Price / BV (X)1.603.340.960.581.05
Price / Net Operating Revenue (X)1.271.320.220.190.23
EarningsYield0.060.190.260.310.19

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: ₹575.76

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: 8.02% compared to the current price ₹533

Intrinsic Value: ₹613.57

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: 15.12% compared to the current price ₹533

Last 5 Year EPS CAGR: 6.57%

*Investments are subject to market risks

Strength and Weakness of Kwality Pharmaceuticals Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 23.58%, which is a positive sign.
  2. The company has higher reserves (60.54 cr) compared to borrowings (32.85 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (157.92 cr) and profit (20.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 85.83, which may not be favorable.
  2. 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 ₹575.76.

What is the Market Cap of Kwality Pharmaceuticals Ltd?

The Market Cap of Kwality Pharmaceuticals Ltd is 553 Cr..

What is the current Stock Price of Kwality Pharmaceuticals Ltd as on 30 May 2024?

The current stock price of Kwality Pharmaceuticals Ltd as on 30 May 2024 is ₹533.

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 545/250.

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

The Stock P/E of Kwality Pharmaceuticals Ltd is 18.9.

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.

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 Kwality 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