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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Orchid Pharma Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 2:12 pm

Market Cap 7,306 Cr.
Current Price 1,440
High / Low1,592/519
Stock P/E61.4
Book Value 241
Dividend Yield0.00 %
ROCE9.37 %
ROE9.94 %
Face Value 10.0
PEG Ratio0.50

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

View Share Price Target for Orchid Pharma Ltd

Competitors of Orchid Pharma Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,205 Cr. 294390/10860.8 20.50.23 %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 86.2 Cr. 114155/87.012.9 55.40.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 13,265 Cr. 1,0831,335/62031.3 2072.08 %28.1 %21.1 % 2.00
Industry Average15,064.80N/A44.21N/AN/A16.2516.45N/A

All Competitor Stocks of Orchid Pharma Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales10312092128161178131165160210183199221
Expenses10812395116147152119147146170161175185
Operating Profit-5-4-311142612181440222335
OPM %-5%-3%-3%9%9%14%10%11%9%19%12%12%16%
Other Income211368-1-036934288
Interest13121110748987644
Depreciation292020202027221887889
Profit before tax-45-25-3149-14-5-14-3759112030
Tax %0%0%0%0%0%0%0%0%0%0%0%0%0%
Net Profit-45-25-3149-14-7-15-585992029
EPS in Rs-10.96-6.06-7.5712.10-3.40-1.61-3.68-1.321.8614.491.853.905.80

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2011Mar 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,7821,8741,9481,747873797683600484450560666751
Expenses1,4371,5171,8371,429703794659612515421505581653
Operating Profit345357110317171324-12-3129558499
OPM %19%19%6%18%20%0%4%-2%-6%7%10%13%13%
Other Income775292156-28-59202182415675253
Interest1171805235372943473107652333325
Depreciation134154252325145141133130118109875531
Profit before tax17275-573-389-296-544-39969-131-11724897
Tax %9%-29%2%49%6%9%12%0%0%0%0%0%
Net Profit15697-560-197-279-495-35369-131-117-24696
EPS in Rs22.1713.84-79.21-23.06-31.37-55.69-39.657.80-32.11-28.55-0.4811.3522.10
Dividend Payout %14%22%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2011-20122012-20132015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-37.82%-677.32%-41.62%-77.42%28.69%119.55%-289.86%10.69%98.29%2400.00%
Change in YoY Net Profit Growth (%)0.00%-639.50%635.70%-35.79%106.11%90.86%-409.40%300.54%87.60%2301.71%

Orchid Pharma Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2011-2012 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:-8%
5 Years:6%
3 Years:22%
TTM:20%
Compounded Profit Growth
10 Years:8%
5 Years:22%
3 Years:41%
TTM:87%
Stock Price CAGR
10 Years:34%
5 Years:%
3 Years:53%
1 Year:175%
Return on Equity
10 Years:%
5 Years:-5%
3 Years:4%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:56 pm

MonthMar 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital70708589898989414141415151
Reserves1,062310244-40-556-881-7937256126076481,1191,174
Borrowings2,0053,2043,2113,2153,1063,2023,230566453268331135165
Other Liabilities8011,067521598616715551128132195205249246
Total Liabilities3,9384,6514,0613,8623,2563,1253,0771,4601,2371,1111,2251,5541,635
Fixed Assets2,0742,5841,7951,6371,4971,3861,256858670584573620650
CWIP35236028228028827227826710463125
Investments111111001545444648
Other Assets1,5111,7061,9841,9441,4701,4671,542576544472561857912
Total Assets3,9384,6514,0613,8623,2563,1253,0771,4601,2371,1111,2251,5541,635

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +737168-36921240191281249218126
Cash from Investing Activity +-293-9861,334-1-176-284516767113-31-312
Cash from Financing Activity +-480664-597-286-46533-0-250-165-21731167
Net Cash Flow-36-153367-76-2401557-2-74-1118-19

Free Cash Flow

MonthMar 2011Mar 2012Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2013
Free Cash Flow345.00355.00314.00168.000.0021.00-15.00-597.00-424.00-213.00-247.00107.00

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 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days2234541307564735111011111887
Inventory Days279187118220196202214254244201217199
Days Payable186220146341402374381182176195173173
Cash Conversion Cycle114-0269-130-108-94123179117163113
Working Capital Days34-1138697-226-505-735166305136154124
ROCE %8%-3%1%1%-4%-4%-5%-6%-5%-2%5%9%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters90.00%90.00%90.00%89.96%89.96%89.96%89.96%72.40%72.40%69.84%69.84%69.84%
FIIs1.79%1.78%1.61%1.48%1.37%0.86%0.81%8.58%8.08%4.14%1.96%1.42%
DIIs3.35%3.35%2.97%2.97%2.98%3.94%2.62%13.48%12.46%14.51%17.73%18.93%
Government0.04%0.04%0.04%0.04%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public4.83%4.84%5.39%5.55%5.69%5.22%6.60%5.54%7.05%11.52%10.47%9.82%
No. of Shareholders34,79833,53333,69833,67932,71730,89429,52329,13229,19736,93136,72034,695

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Small Cap Fund1,534,9190.7887.281,262,5962024-11-1521.57%
Quant Multi Asset Fund1,262,5966.2371.81,262,5962024-11-150%
Nippon India Pharma Fund1,000,0000.9256.871,262,5962024-11-15-20.8%
Quant Value Fund668,4324.2938.011,262,5962024-11-15-47.06%
UTI Small Cap Fund445,0000.7325.31,262,5962024-11-15-64.76%
ICICI Prudential Pharma Healthcare & Diagnostics (P.H.D) Fund269,6670.4715.331,262,5962024-11-15-78.64%
Tata Multi Asset Opportunities Fund175,2600.489.971,262,5962024-11-15-86.12%
Tata India Pharma & HealthCare Fund175,0001.329.951,262,5962024-11-15-86.14%
UTI Healthcare Fund100,0000.675.691,262,5962024-11-15-92.08%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)19.0611.35-0.48-28.55-14.75
Diluted EPS (Rs.)19.0611.35-0.48-28.55-14.75
Cash EPS (Rs.)25.3025.3021.71-1.87-1.26
Book Value[Excl.RevalReserv]/Share (Rs.)230.58168.72158.61159.96250.97
Book Value[Incl.RevalReserv]/Share (Rs.)230.58168.72158.61159.96250.97
Revenue From Operations / Share (Rs.)161.55163.14137.09110.26124.47
PBDIT / Share (Rs.)27.9125.2515.2215.93-0.24
PBIT / Share (Rs.)21.3511.82-6.10-10.76-31.09
PBT / Share (Rs.)18.1313.54-13.94-23.34-32.11
Net Profit / Share (Rs.)18.7411.880.38-28.55-32.11
NP After MI And SOA / Share (Rs.)18.1711.35-0.47-28.55-32.11
PBDIT Margin (%)17.2715.4711.1014.44-0.19
PBIT Margin (%)13.217.24-4.44-9.75-24.98
PBT Margin (%)11.228.29-10.16-21.16-25.79
Net Profit Margin (%)11.607.270.28-25.89-25.79
NP After MI And SOA Margin (%)11.246.95-0.34-25.89-25.79
Return on Networth / Equity (%)7.886.72-0.30-17.84-12.79
Return on Capital Employeed (%)8.375.65-2.86-4.00-8.23
Return On Assets (%)5.933.78-0.17-9.41-7.61
Long Term Debt / Equity (X)0.100.210.320.650.48
Total Debt / Equity (X)0.110.480.410.650.48
Asset Turnover Ratio (%)0.580.570.470.300.21
Current Ratio (X)3.041.351.873.873.25
Quick Ratio (X)2.030.731.152.792.39
Inventory Turnover Ratio (X)2.142.022.091.601.44
Interest Coverage Ratio (X)8.653.201.941.27-0.23
Interest Coverage Ratio (Post Tax) (X)6.811.50-0.77-0.85-30.52
Enterprise Value (Cr.)5169.071869.701420.3010472.28346.98
EV / Net Operating Revenue (X)6.312.812.5423.270.68
EV / EBITDA (X)36.5218.1422.86161.10-350.31
MarketCap / Net Operating Revenue (X)6.472.362.0722.360.04
Price / BV (X)4.532.281.7915.410.02
Price / Net Operating Revenue (X)6.472.362.0722.360.04
EarningsYield0.010.020.00-0.01-6.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Orchid Pharma Ltd as of November 17, 2024 is: 1,500.28

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 17, 2024, Orchid Pharma Ltd is Undervalued by 4.19% compared to the current share price 1,440.00

Intrinsic Value of Orchid Pharma Ltd as of November 17, 2024 is: 3,346.38

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 17, 2024, Orchid Pharma Ltd is Undervalued by 132.39% compared to the current share price 1,440.00

Last 5 Year EPS CAGR: 123.05%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -39.75, which is a positive sign.
  1. The stock has a low average ROCE of -0.42%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 42.67, which may not be favorable.
  3. The company has higher borrowings (1,776.23) compared to reserves (325.46), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (451.38) and profit (-152.77).

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 Orchid Pharma Ltd:
    1. Net Profit Margin: 11.6%
      • 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: 8.37% (Industry Average ROCE: 16.25%)
      • 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%: 7.88% (Industry Average ROE: 16.45%)
      • 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): 6.81
      • 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: 2.03
      • 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: 61.4 (Industry average Stock P/E: 44.21)
      • 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: 0.11
      • 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

Orchid Pharma Ltd. is a Public Limited Listed company incorporated on 01/07/1992 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L24222TN1992PLC022994 and registration number is 022994. Currently Company is involved in the business activities of Manufacture of medicinal substances used in the manufacture of pharmaceuticals: antibiotics, endocrine products, basic vitamins; opium derivatives; sulpha drugs; serums and plasmas; salicylic acid, its salts and esters; glycosides and vegetable alkaloids; chemically pure suger etc.. Company’s Total Operating Revenue is Rs. 556.97 Cr. and Equity Capital is Rs. 40.82 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsPlot Nos. 121-128, 128A-133, 138-151, 159-164, SIDCO Industrial Estate, Alathur, Chengalpattu Tamil Nadu 600110corporate@orchidpharma.com
http://www.orchidpharma.com
Management
NamePosition Held
Mr. Ram Gopal AgarwalChairman & Non-Exe.Director
Mr. Manish DhanukaManaging Director
Mr. Mridul DhanukaWhole Time Director
Mrs. Tanu SinglaIndependent Director
Dr. Dharam VirIndependent Director
Mr. Manoj Kumar GoyalIndependent Director
Mr. Mudit TandonIndependent Director

FAQ

What is the latest intrinsic value of Orchid Pharma Ltd?

The latest intrinsic value of Orchid Pharma Ltd as on 17 November 2024 is ₹1500.28, which is 4.19% higher than the current market price of ₹1,440.00.

What is the Market Cap of Orchid Pharma Ltd?

The Market Cap of Orchid Pharma Ltd is 7,306 Cr..

What is the current Stock Price of Orchid Pharma Ltd as on 17 November 2024?

The current stock price of Orchid Pharma Ltd as on 17 November 2024 is ₹1,440.

What is the High / Low of Orchid Pharma Ltd stocks in FY 2024?

In FY 2024, the High / Low of Orchid Pharma Ltd stocks is 1,592/519.

What is the Stock P/E of Orchid Pharma Ltd?

The Stock P/E of Orchid Pharma Ltd is 61.4.

What is the Book Value of Orchid Pharma Ltd?

The Book Value of Orchid Pharma Ltd is 241.

What is the Dividend Yield of Orchid Pharma Ltd?

The Dividend Yield of Orchid Pharma Ltd is 0.00 %.

What is the ROCE of Orchid Pharma Ltd?

The ROCE of Orchid Pharma Ltd is 9.37 %.

What is the ROE of Orchid Pharma Ltd?

The ROE of Orchid Pharma Ltd is 9.94 %.

What is the Face Value of Orchid Pharma Ltd?

The Face Value of Orchid Pharma 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 Orchid Pharma 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