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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500288 | NSE: MOREPENLAB

Morepen Laboratories Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:46 pm

Market Cap 4,016 Cr.
Current Price 73.2
High / Low101/38.6
Stock P/E30.6
Book Value 20.3
Dividend Yield0.00 %
ROCE16.8 %
ROE12.0 %
Face Value 2.00
PEG Ratio1.52

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

View Share Price Target for Morepen Laboratories Ltd

Competitors of Morepen Laboratories Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,465 Cr. 318390/10865.7 20.50.21 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 59.8 Cr. 80.694.9/25.822.9 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 85.5 Cr. 114155/87.012.8 55.40.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 13,221 Cr. 1,0801,335/62031.2 2072.08 %28.1 %21.1 % 2.00
Industry Average19,460.76 Cr1,177.0554.20184.880.33%16.40%16.92%6.61

All Competitor Stocks of Morepen Laboratories Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales287387395396368302403348364401422445423
Expenses256343353364350288374328348375388394375
Operating Profit30444232191529211626345148
OPM %11%11%11%8%5%5%7%6%4%7%8%11%11%
Other Income4233311132344
Interest-00-91100110021
Depreciation77777777788810
Profit before tax2839472714822141121294442
Tax %3%21%20%21%13%32%29%36%26%29%26%27%32%
Net Profit27303722126169815213229
EPS in Rs0.590.680.830.480.260.110.310.180.160.290.420.630.55

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales3263674014855956077698531,1881,5471,4181,690
Expenses2953183524245345427017851,0701,4101,3381,532
Operating Profit314948626165686911913780159
OPM %10%13%12%13%10%11%9%8%10%9%6%9%
Other Income641-344491210614
Interest121091084222-724
Depreciation464639353434403730282833
Profit before tax-21-3213243029399912756135
Tax %0%0%6%-1%0%0%1%14%1%20%31%29%
Net Profit-21-321324302934971023997
EPS in Rs-0.46-0.060.050.280.530.660.640.752.162.130.761.88
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)85.71%166.67%550.00%84.62%25.00%-3.33%17.24%185.29%5.15%-61.76%148.72%
Change in YoY Net Profit Growth (%)0.00%80.95%383.33%-465.38%-59.62%-28.33%20.57%168.05%-180.14%-66.92%210.48%

Morepen Laboratories Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:17%
3 Years:12%
TTM:15%
Compounded Profit Growth
10 Years:34%
5 Years:27%
3 Years:0%
TTM:147%
Stock Price CAGR
10 Years:22%
5 Years:34%
3 Years:14%
1 Year:67%
Return on Equity
10 Years:13%
5 Years:15%
3 Years:12%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:30 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital90909090909090909096102102110
Reserves908878911061361631942914576517451,001
Borrowings2312092011871691341321331719252933
Other Liabilities95103121156173226230246460499332417418
Total Liabilities5064904895245385866156638581,0701,1101,2931,562
Fixed Assets409368322297272264236216225252267307355
CWIP00000000214172418
Investments400000011001132
Other Assets931211672272663213794466318048279601,056
Total Assets5064904895245385866156638581,0701,1101,2931,562

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +343451504163171151-60-9173
Cash from Investing Activity +-3-1-32-27-14-27-13-12-70-32-47-83
Cash from Financing Activity +-30-29-19-27-24-38-0547661445
Net Cash Flow14-0-43-14428-266-5

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-200.00-160.00-153.00-125.00-108.00-69.00-64.00-64.00102.00118.0055.00130.00

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 Days444251665773645956596870
Inventory Days685655516576699182968785
Days Payable104116126140125173124113989087101
Cash Conversion Cycle8-17-20-23-3-2493740656954
Working Capital Days-19-20-18-10-86-62-30-3225910499
ROCE %-3%1%3%8%9%9%8%10%25%25%9%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters34.54%38.38%36.74%38.22%38.22%38.22%38.22%38.22%38.22%38.22%38.22%35.66%
FIIs0.91%0.96%0.95%1.15%0.89%0.96%1.00%1.29%2.11%1.85%1.67%2.08%
DIIs1.16%1.07%4.08%3.98%3.74%2.93%2.32%2.27%2.21%2.15%2.14%1.69%
Government0.00%0.00%0.00%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public63.39%59.59%58.24%56.63%57.15%57.88%58.45%58.20%57.46%57.76%57.96%60.57%
No. of Shareholders2,55,1552,61,4372,87,1152,90,3673,06,0303,06,1503,01,8323,04,0013,04,2893,36,0193,48,7664,30,929

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal BSE Healthcare ETF4,4010.160.024,4012024-11-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)1.880.772.262.160.75
Diluted EPS (Rs.)1.880.771.962.160.75
Cash EPS (Rs.)2.541.302.712.831.57
Book Value[Excl.RevalReserv]/Share (Rs.)16.5814.7212.109.436.30
Book Value[Incl.RevalReserv]/Share (Rs.)16.5814.7212.109.436.30
Revenue From Operations / Share (Rs.)33.0727.7332.3726.4118.97
PBDIT / Share (Rs.)3.381.683.082.901.73
PBIT / Share (Rs.)2.721.132.502.230.91
PBT / Share (Rs.)2.651.092.652.190.86
Net Profit / Share (Rs.)1.890.752.132.160.74
NP After MI And SOA / Share (Rs.)1.880.752.132.160.74
PBDIT Margin (%)10.216.049.5010.999.14
PBIT Margin (%)8.234.077.718.444.81
PBT Margin (%)8.013.938.198.294.58
Net Profit Margin (%)5.712.726.578.173.93
NP After MI And SOA Margin (%)5.682.726.578.173.93
Return on Networth / Equity (%)11.345.1317.5722.8511.82
Return on Capital Employeed (%)15.617.3119.4422.0713.16
Return On Assets (%)7.433.489.5011.315.06
Total Debt / Equity (X)0.030.030.030.030.04
Asset Turnover Ratio (%)1.411.301.601.471.24
Current Ratio (X)2.212.351.611.301.06
Quick Ratio (X)1.591.641.000.870.66
Inventory Turnover Ratio (X)3.703.103.534.013.65
Interest Coverage Ratio (X)46.5243.25-19.9673.0239.30
Interest Coverage Ratio (Post Tax) (X)27.0420.53-12.8155.2917.92
Enterprise Value (Cr.)2126.721280.991720.861393.88402.04
EV / Net Operating Revenue (X)1.260.901.111.170.47
EV / EBITDA (X)12.3214.9511.7110.675.15
MarketCap / Net Operating Revenue (X)1.270.921.131.220.50
Price / BV (X)2.541.743.023.401.51
Price / Net Operating Revenue (X)1.270.921.131.220.50
EarningsYield0.040.020.050.060.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Morepen Laboratories Ltd as of November 21, 2024 is: 76.03

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 21, 2024, Morepen Laboratories Ltd is Undervalued by 3.87% compared to the current share price 73.20

Intrinsic Value of Morepen Laboratories Ltd as of November 21, 2024 is: 91.37

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 21, 2024, Morepen Laboratories Ltd is Undervalued by 24.82% compared to the current share price 73.20

Last 5 Year EPS CAGR: 20.18%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 1.90 and average Dividend Yield of 6.65%.
  2. The stock has a low average Working Capital Days of 3.00, which is a positive sign.
  3. The company has higher reserves (314.69 cr) compared to borrowings (116.85 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (367.25 cr) and profit (44.17 cr) over the years.
  1. The stock has a low average ROCE of 10.08%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 16.25, 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 Morepen Laboratories Ltd:
    1. Net Profit Margin: 5.71%
      • 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: 15.61% (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%: 11.34% (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): 27.04
      • 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: 1.59
      • 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: 30.6 (Industry average Stock P/E: 54.2)
      • 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: 0.03
      • 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

Morepen Laboratories Ltd. is a Public Limited Listed company incorporated on 01/12/1984 and has its registered office in the State of Himachal Pradesh, India. Company’s Corporate Identification Number(CIN) is L24231HP1984PLC006028 and registration number is 006028. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 1449.27 Cr. and Equity Capital is Rs. 95.56 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsMorepen Village, Solan District Himachal Pradesh 173205investors@morepen.com
http://www.morepen.com
Management
NamePosition Held
Mr. Sushil SuriChairman & Managing Director
Mr. Sanjay SuriWhole Time Director
Mr. Sukhcharan SinghIndependent Director
Mr. Praveen Kumar DuttIndependent Director
Mr. Bhupender Raj WadhwaIndependent Director
Mrs. SavitaIndependent Director
Mr. Manoj JoshiIndependent Director
Mr. Ranjit KhattarIndependent Director
Mr. Sharad JainIndependent Director

FAQ

What is the latest intrinsic value of Morepen Laboratories Ltd?

The latest intrinsic value of Morepen Laboratories Ltd as on 21 November 2024 is ₹76.03, which is 3.87% higher than the current market price of ₹73.20.

What is the Market Cap of Morepen Laboratories Ltd?

The Market Cap of Morepen Laboratories Ltd is 4,016 Cr..

What is the current Stock Price of Morepen Laboratories Ltd as on 21 November 2024?

The current stock price of Morepen Laboratories Ltd as on 21 November 2024 is ₹73.2.

What is the High / Low of Morepen Laboratories Ltd stocks in FY 2024?

In FY 2024, the High / Low of Morepen Laboratories Ltd stocks is 101/38.6.

What is the Stock P/E of Morepen Laboratories Ltd?

The Stock P/E of Morepen Laboratories Ltd is 30.6.

What is the Book Value of Morepen Laboratories Ltd?

The Book Value of Morepen Laboratories Ltd is 20.3.

What is the Dividend Yield of Morepen Laboratories Ltd?

The Dividend Yield of Morepen Laboratories Ltd is 0.00 %.

What is the ROCE of Morepen Laboratories Ltd?

The ROCE of Morepen Laboratories Ltd is 16.8 %.

What is the ROE of Morepen Laboratories Ltd?

The ROE of Morepen Laboratories Ltd is 12.0 %.

What is the Face Value of Morepen Laboratories Ltd?

The Face Value of Morepen Laboratories 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 Morepen Laboratories 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