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Last Updated on: 19 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Lincoln Pharmaceuticals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 19, 2024, 6:51 pm

Market Cap 1,248 Cr.
Current Price 623
High / Low814/498
Stock P/E12.9
Book Value 319
Dividend Yield0.29 %
ROCE22.3 %
ROE16.8 %
Face Value 10.0
PEG Ratio1.16

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

View Share Price Target for Lincoln Pharmaceuticals Ltd

Competitors of Lincoln Pharmaceuticals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,574 Cr. 328390/10867.8 20.50.20 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 61.0 Cr. 82.294.9/25.823.4 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 86.3 Cr. 115155/87.012.9 55.40.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 13,185 Cr. 1,0771,335/62031.1 2072.09 %28.1 %21.1 % 2.00
Industry Average19,511.81 Cr1,183.5254.38184.880.32%16.40%16.92%6.61

All Competitor Stocks of Lincoln Pharmaceuticals Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales11580122127120103123141134112136156146
Expenses95649798968510711210796115125117
Operating Profit20152529231717292717213130
OPM %17%19%21%23%20%17%14%21%20%15%15%20%20%
Other Income13233266648911
Interest0100010001000
Depreciation2222222222333
Profit before tax18152531241721323117253738
Tax %27%18%29%25%25%34%28%26%29%26%25%25%26%
Net Profit13131823181115242213192828
EPS in Rs6.746.298.8511.528.795.507.4911.8410.796.279.4913.8014.00

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales188195210266400360361366386424472510551
Expenses174179190240359313308299321337376421452
Operating Profit14162026414753686687969098
OPM %7%8%10%10%10%13%15%18%17%21%20%18%18%
Other Income36277255115102231
Interest88781075422122
Depreciation23455667788910
Profit before tax711122033374662678496100117
Tax %30%16%16%24%28%25%25%22%23%26%28%27%
Net Profit5101015242835495162697387
EPS in Rs3.145.926.539.2014.5214.0617.3124.3625.7231.1234.6336.4043.56
Dividend Payout %19%10%9%11%7%9%9%6%6%5%4%4%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)100.00%0.00%50.00%60.00%16.67%25.00%40.00%4.08%21.57%11.29%5.80%
Change in YoY Net Profit Growth (%)0.00%-100.00%50.00%10.00%-43.33%8.33%15.00%-35.92%17.49%-10.28%-5.49%

Lincoln Pharmaceuticals Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:10%
3 Years:11%
TTM:11%
Compounded Profit Growth
10 Years:25%
5 Years:14%
3 Years:14%
TTM:20%
Stock Price CAGR
10 Years:23%
5 Years:29%
3 Years:25%
1 Year:-6%
Return on Equity
10 Years:17%
5 Years:17%
3 Years:17%
Last Year:17%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:37 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital16161616202020202020202020
Reserves738295117172204249293346413482573619
Borrowings76687678646134512211
Other Liabilities7293706448626371859983106139
Total Liabilities237260258275305347366389452534587700780
Fixed Assets65656698103117121123111132151179177
CWIP22337020216737
Investments000010111834819791139164
Other Assets169192190174186219225232259290339379432
Total Assets237260258275305347366389452534587700780

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-16525452527537569763963
Cash from Investing Activity +-1617-42-25-12-18-31-64-78-37-57
Cash from Financing Activity +29-11-32-30-11-36-38-6-3-4-5
Net Cash Flow-3-4-1-0-03-17-1-4-21

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow14.00-60.00-48.00-50.00-37.00-17.00-8.0034.0061.0086.0094.0088.00

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 Days140154163739211112296989098102
Inventory Days546244366386759586121106101
Days Payable13317492405482921021051207795
Cash Conversion Cycle624311670100115106887891126108
Working Capital Days849714579115138143130119115123128
ROCE %11%11%15%22%19%19%23%22%25%24%22%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters40.28%42.08%42.05%44.08%44.09%46.34%47.00%48.68%50.53%49.81%49.54%49.78%
FIIs0.75%0.95%0.77%0.64%0.63%1.44%1.27%1.74%2.59%3.22%3.93%3.95%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.06%0.05%0.04%
Public58.97%56.97%57.19%55.28%55.29%52.22%51.74%49.57%46.87%46.92%46.49%46.24%
No. of Shareholders30,27431,91332,44731,90231,73129,84629,08827,48028,67029,31631,37529,967

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal S&P BSE Healthcare ETF1060.080.011062024-11-120%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)46.5836.4034.6331.1125.72
Diluted EPS (Rs.)46.5836.4034.6331.1125.72
Cash EPS (Rs.)51.8940.9738.6634.9129.40
Book Value[Excl.RevalReserv]/Share (Rs.)295.98250.86216.12187.85156.74
Book Value[Incl.RevalReserv]/Share (Rs.)295.98250.86216.12187.85156.74
Revenue From Operations / Share (Rs.)289.84254.78235.71212.09193.25
PBDIT / Share (Rs.)67.0755.7652.6646.4238.29
PBIT / Share (Rs.)61.7651.1848.6242.6434.63
PBT / Share (Rs.)61.0350.1647.9041.8633.62
Net Profit / Share (Rs.)46.5836.4034.6331.1225.73
NP After MI And SOA / Share (Rs.)46.5836.4034.6331.1125.72
PBDIT Margin (%)23.1321.8822.3421.8819.81
PBIT Margin (%)21.3020.0820.6220.1017.91
PBT Margin (%)21.0519.6820.3219.7317.39
Net Profit Margin (%)16.0714.2814.6914.6713.31
NP After MI And SOA Margin (%)16.0714.2814.6914.6613.30
Return on Networth / Equity (%)15.7314.5016.0216.5816.42
Return on Capital Employeed (%)20.3419.8921.9422.1021.38
Return On Assets (%)13.3212.4112.9713.5413.21
Total Debt / Equity (X)0.000.000.000.000.01
Asset Turnover Ratio (%)0.900.900.950.991.03
Current Ratio (X)4.845.083.904.173.78
Quick Ratio (X)4.004.113.103.533.06
Inventory Turnover Ratio (X)2.732.482.662.182.76
Dividend Payout Ratio (NP) (%)3.224.124.320.0011.66
Dividend Payout Ratio (CP) (%)2.893.663.870.0010.21
Earning Retention Ratio (%)96.7895.8895.680.0088.34
Cash Earning Retention Ratio (%)97.1196.3496.130.0089.79
Interest Coverage Ratio (X)91.7055.0172.6859.4437.95
Interest Coverage Ratio (Post Tax) (X)64.6936.9148.7940.8626.51
Enterprise Value (Cr.)1159.77646.08574.49436.11258.08
EV / Net Operating Revenue (X)2.001.271.221.030.66
EV / EBITDA (X)8.635.795.454.703.37
MarketCap / Net Operating Revenue (X)2.021.331.321.060.69
Retention Ratios (%)96.7795.8795.670.0088.33
Price / BV (X)1.981.351.441.200.85
Price / Net Operating Revenue (X)2.021.331.321.060.69
EarningsYield0.070.100.110.130.19

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Lincoln Pharmaceuticals Ltd as of November 19, 2024 is: 693.34

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 19, 2024, Lincoln Pharmaceuticals Ltd is Undervalued by 11.29% compared to the current share price 623.00

Intrinsic Value of Lincoln Pharmaceuticals Ltd as of November 19, 2024 is: 770.39

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 19, 2024, Lincoln Pharmaceuticals Ltd is Undervalued by 23.66% compared to the current share price 623.00

Last 5 Year EPS CAGR: 11.11%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.58%, which is a positive sign.
  2. The company has higher reserves (286.00 cr) compared to borrowings (36.08 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (360.69 cr) and profit (53.23 cr) over the years.
  1. The stock has a high average Working Capital Days of 118.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 91.92, 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 Lincoln Pharmaceuticals Ltd:
    1. Net Profit Margin: 16.07%
      • 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: 20.34% (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%: 15.73% (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): 64.69
      • 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: 4
      • 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: 54.38)
      • 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
      • 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

Lincoln Pharmaceuticals Ltd. is a Public Limited Listed company incorporated on 20/01/1995 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24230GJ1995PLC024288 and registration number is 024288. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 472.08 Cr. and Equity Capital is Rs. 20.03 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsLincoln House, Ahmedabad Gujarat 380060investor@lincolnpharma.com
http://www.lincolnpharma.com
Management
NamePosition Held
Mr. Kishor M ShahNon Executive Chairman
Mr. Mahendra G PatelManaging Director
Mr. Hashmukh I PatelWhole Time Director
Mr. Munjal M PatelWhole Time Director
Mr. Ashish R PatelWhole Time Director
Mr. Rajnikant G PatelNon Executive Director
Mr. Nareshkumar SutharIndependent Director
Mr. Saurin J ParikhIndependent Director
Ms. Seema MehtaIndependent Director

FAQ

What is the latest intrinsic value of Lincoln Pharmaceuticals Ltd?

The latest intrinsic value of Lincoln Pharmaceuticals Ltd as on 19 November 2024 is ₹693.34, which is 11.29% higher than the current market price of ₹623.00.

What is the Market Cap of Lincoln Pharmaceuticals Ltd?

The Market Cap of Lincoln Pharmaceuticals Ltd is 1,248 Cr..

What is the current Stock Price of Lincoln Pharmaceuticals Ltd as on 19 November 2024?

The current stock price of Lincoln Pharmaceuticals Ltd as on 19 November 2024 is ₹623.

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

In FY 2024, the High / Low of Lincoln Pharmaceuticals Ltd stocks is 814/498.

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

The Stock P/E of Lincoln Pharmaceuticals Ltd is 12.9.

What is the Book Value of Lincoln Pharmaceuticals Ltd?

The Book Value of Lincoln Pharmaceuticals Ltd is 319.

What is the Dividend Yield of Lincoln Pharmaceuticals Ltd?

The Dividend Yield of Lincoln Pharmaceuticals Ltd is 0.29 %.

What is the ROCE of Lincoln Pharmaceuticals Ltd?

The ROCE of Lincoln Pharmaceuticals Ltd is 22.3 %.

What is the ROE of Lincoln Pharmaceuticals Ltd?

The ROE of Lincoln Pharmaceuticals Ltd is 16.8 %.

What is the Face Value of Lincoln Pharmaceuticals Ltd?

The Face Value of Lincoln 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 Lincoln 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