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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Panacea Biotec Ltd

Basic Stock Data

Last Updated: June 25, 2024, 10:27 pm

Market Cap 842 Cr.
Current Price 138
High / Low202/112
Stock P/E
Book Value 137
Dividend Yield0.00 %
ROCE3.60 %
ROE4.10 %
Face Value 1.00
PEG Ratio0.00

Competitors of Panacea Biotec Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sequent Scientific Ltd 2,986 Cr. 120156/86.0 26.30.00 %0.90 %2.46 % 2.00
Suven Life Sciences Ltd 2,184 Cr. 100129/59.6 12.40.00 %35.0 %34.9 % 1.00
Abbott India Ltd 57,542 Cr. 27,07829,639/21,90747.9 1,7411.52 %46.0 %34.9 % 10.0
Suven Pharmaceuticals Ltd 18,370 Cr. 721768/42761.2 80.60.14 %21.1 %15.9 % 1.00
Bacil Pharma Ltd 13.8 Cr. 23.529.2/4.68 2.070.00 %4.94 %5.19 % 10.0
Industry Average15,505.03 Cr1,231.2438.85196.740.36%17.48%16.86%6.57

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales141.76168.27132.45232.17155.88140.73110.70105.12115.20128.93129.19143.02150.50
Expenses126.66167.33134.00226.15144.02170.92190.51108.96123.84134.60139.50146.58150.65
Operating Profit15.100.94-1.556.0211.86-30.19-79.81-3.84-8.64-5.67-10.31-3.56-0.15
OPM %10.65%0.56%-1.17%2.59%7.61%-21.45%-72.10%-3.65%-7.50%-4.40%-7.98%-2.49%-0.10%
Other Income1.894.903.232.031.661,680.2639.9538.2241.7134.4433.826.008.46
Interest45.6946.9147.8950.1652.1330.661.251.180.961.051.000.910.85
Depreciation11.3111.5811.0610.9010.5511.1510.059.899.679.519.489.319.11
Profit before tax-40.01-52.65-57.27-53.01-49.161,608.26-51.1623.3122.4418.2113.03-7.78-1.65
Tax %-0.10%-2.83%-0.14%0.00%-0.08%23.06%-9.73%32.65%13.68%169.63%15.73%-6.56%-33.33%
Net Profit-40.05-54.14-57.35-53.01-49.201,237.47-56.1415.7019.37-12.6810.98-8.29-2.20
EPS in Rs-6.54-8.83-9.36-8.65-8.03201.86-9.162.563.16-2.071.79-1.35-0.36

Last Updated: June 11, 2024, 3:11 am

Quarterly Chart

Profit & Loss - Annual Report

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales710608510687653544593457544625661460552
Expenses773665582643541505509591490548674558571
Operating Profit-63-56-72441123984-1345477-13-98-20
OPM %-9%-9%-14%6%17%7%14%-29%10%12%-2%-21%-4%
Other Income-15-71832870628338-1491,68715483
Interest10110415010512710110110517418518144
Depreciation77867167736857544346443937
Profit before tax-255-253-111-99-19-67-6645-178-1461,4491322
Tax %21%7%-2%-3%-10%16%-15%17%-9%-1%26%363%
Net Profit-206-234-113-108-21-56-7638-194-1481,078-34-12
EPS in Rs-33.55-38.22-18.29-17.38-2.98-8.89-12.076.15-31.69-24.09175.91-5.42-1.99
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-13.59%51.71%4.42%80.56%-166.67%-35.71%150.00%-610.53%23.71%828.38%-103.15%
Change in YoY Net Profit Growth (%)0.00%65.30%-47.28%76.13%-247.22%130.95%185.71%-760.53%634.24%804.67%-931.53%

Growth

Compounded Sales Growth
10 Years:1%
5 Years:4%
3 Years:-4%
TTM:22%
Compounded Profit Growth
10 Years:6%
5 Years:13%
3 Years:21%
TTM:63%
Stock Price CAGR
10 Years:-2%
5 Years:-1%
3 Years:-29%
1 Year:8%
Return on Equity
10 Years:%
5 Years:%
3 Years:-16%
Last Year:-4%

Last Updated: June 25, 2024, 4:57 pm

Panacea Biotec Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital6666666666666
Reserves869620507449426350303344161-235871837841
Preference Capital00016160000000
Borrowings8779791,0601,0951,088994941646742820342021
Other Liabilities198235371381334440349379481587848407404
Total Liabilities1,9501,8391,9431,9301,8541,7891,5981,3761,3901,1781,7591,2711,272
Fixed Assets1,1951,1541,2761,1441,0711,001949806657609622600624
CWIP911351721551613040232434174252
Investments3322161597756051334
Other Assets6315274796166147506025427035341,114615562
Total Assets1,9501,8391,9431,9301,8541,7891,5981,3761,3901,1781,7591,2711,272

Reserves and Borrowings Chart

Panacea Biotec Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 228-24543791131118105-30107-108-422
Cash from Investing Activity -124-61-38-3716-2655-6-35-481,283430
Cash from Financing Activity -134105-30-1-117-107-164-10191-47-1,176-18
Net Cash Flow-2920-14-1-10-29-22612-2-10

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-63.00-56.00-72.0028.0096.0039.0084.00-134.0054.0077.00-13.00-98.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days354268527995847146494548
Inventory Days405371375404516770651173344311296292
Days Payable128243430272318607540572463440327256
Cash Conversion Cycle31117013184278259195-328-73-801483
Working Capital Days11292-11331134826-307976-229-7
ROCE %-8%-8%-8%0%4%2%3%-16%4%6%-6%-10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters73.59%73.59%73.59%73.59%73.59%73.59%73.59%73.59%73.59%73.59%73.59%73.59%
FIIs0.03%0.02%0.00%0.00%0.00%0.14%0.18%0.18%0.22%0.26%0.26%0.27%
DIIs0.42%0.40%0.13%0.00%0.00%0.29%0.43%0.43%0.54%0.57%0.69%0.84%
Public25.95%25.99%26.28%26.41%26.41%25.98%25.81%25.80%25.66%25.58%25.46%25.30%
No. of Shareholders54,31352,81652,46549,56349,89649,07850,53348,63447,81548,87847,09146,242

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 ETF1170.0201172024-06-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)-0.19-5.43175.98-24.11-31.72
Diluted EPS (Rs.)-0.19-5.43175.98-24.11-31.72
Cash EPS (Rs.)5.740.87183.11-16.68-24.72
Book Value[Excl.RevalReserv]/Share (Rs.)136.74133.63138.09-41.3628.40
Book Value[Incl.RevalReserv]/Share (Rs.)136.74133.63138.09-41.3628.40
Revenue From Operations / Share (Rs.)91.2275.09107.96102.0188.83
PBDIT / Share (Rs.)0.93-7.56-0.4714.149.97
PBIT / Share (Rs.)-5.05-13.95-7.606.702.91
PBT / Share (Rs.)0.242.09236.54-23.56-28.01
Net Profit / Share (Rs.)-0.24-5.51175.98-24.12-31.78
NP After MI And SOA / Share (Rs.)-0.19-5.43175.98-24.11-31.72
PBDIT Margin (%)1.02-10.06-0.4313.8611.22
PBIT Margin (%)-5.53-18.57-7.046.563.27
PBT Margin (%)0.262.78219.10-23.09-31.53
Net Profit Margin (%)-0.26-7.33163.01-23.64-35.77
NP After MI And SOA Margin (%)-0.20-7.22163.01-23.63-35.70
Return on Networth / Equity (%)-0.13-4.04126.990.00-109.75
Return on Capital Employeed (%)-3.32-9.09-4.755.441.90
Return On Assets (%)-0.09-2.6160.47-12.52-13.97
Long Term Debt / Equity (X)0.020.010.03-2.923.45
Total Debt / Equity (X)0.020.010.03-2.923.47
Asset Turnover Ratio (%)0.440.300.240.310.12
Current Ratio (X)1.571.711.301.201.50
Quick Ratio (X)0.991.101.030.791.18
Inventory Turnover Ratio (X)1.111.021.140.580.83
Interest Coverage Ratio (X)1.60-10.43-0.010.460.35
Interest Coverage Ratio (Post Tax) (X)-9.48-29.74-2.310.210.01
Enterprise Value (Cr.)621.26454.38355.931682.861194.59
EV / Net Operating Revenue (X)1.110.980.532.692.20
EV / EBITDA (X)108.23-9.81-122.8619.4319.57
MarketCap / Net Operating Revenue (X)1.331.441.371.741.23
Price / BV (X)0.880.801.07-4.343.79
Price / Net Operating Revenue (X)1.331.441.371.741.23
EarningsYield0.00-0.051.19-0.13-0.28

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 85.94

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.

Overvalued: 37.72% compared to the current price 138

Default values used*: Deafault value of 15 for Stock P/E is used

Intrinsic Value: 170.46

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: 23.52% compared to the current price ₹138

Default values used*: Deafault value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: 98.35%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -8.00, which is a positive sign.
  2. The company has higher reserves (487.92 cr) compared to borrowings (2.46 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of -3.08%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 85.50, which may not be favorable.
  3. The company has not shown consistent growth in sales (584.92) and profit (-85.62).

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 Panacea Biotec Ltd:
    1. Net Profit Margin: -0.26%
      • 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: -3.32% (Industry Average ROCE: %)
      • 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%: -0.13% (Industry Average ROE: %)
      • 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): -9.48
      • 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: 0.99
      • 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: (Industry average Stock P/E: )
      • 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: 0.02
      • 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

Panacea Biotec Ltd. is a Public Limited Listed company incorporated on 02/02/1984 and has its registered office in the State of Punjab, India. Company’s Corporate Identification Number(CIN) is L33117PB1984PLC022350 and registration number is 022350. Currently Company is involved in the business activities of Manufacture of allopathic pharmaceutical preparations. Company’s Total Operating Revenue is Rs. 235.50 Cr. and Equity Capital is Rs. 6.13 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsAmbala-Chandigarh Highway, Lalru Punjab 140501companysec@panaceabiotec.com
http://www.panaceabiotec.com
Management
NamePosition Held
Dr. Rajesh JainChairman & Managing Director
Mr. Sandeep JainJoint Managing Director
Mr. Ankesh JainWhole Time Director
Mr. R L NarasimhanNon Executive Director
Mr. N N KhamitkarNon Executive Director
Mr. K M LalNon Executive Director
Mrs. Manjula UpadhyayNon Executive Director
Mr. Bhupinder SinghNon Executive Director
Mr. Mukul GuptaNon Executive Director
Mr. Narotam Kumar JunejaNon Executive Director

FAQ

What is the latest fair value of Panacea Biotec Ltd?

The latest fair value of Panacea Biotec Ltd is ₹85.94.

What is the Market Cap of Panacea Biotec Ltd?

The Market Cap of Panacea Biotec Ltd is 842 Cr..

What is the current Stock Price of Panacea Biotec Ltd as on 25 June 2024?

The current stock price of Panacea Biotec Ltd as on 25 June 2024 is ₹138.

What is the High / Low of Panacea Biotec Ltd stocks in FY 2024?

In FY 2024, the High / Low of Panacea Biotec Ltd stocks is 202/112.

What is the Stock P/E of Panacea Biotec Ltd?

The Stock P/E of Panacea Biotec Ltd is .

What is the Book Value of Panacea Biotec Ltd?

The Book Value of Panacea Biotec Ltd is 137.

What is the Dividend Yield of Panacea Biotec Ltd?

The Dividend Yield of Panacea Biotec Ltd is 0.00 %.

What is the ROCE of Panacea Biotec Ltd?

The ROCE of Panacea Biotec Ltd is 3.60 %.

What is the ROE of Panacea Biotec Ltd?

The ROE of Panacea Biotec Ltd is 4.10 %.

What is the Face Value of Panacea Biotec Ltd?

The Face Value of Panacea Biotec Ltd is 1.00.

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 Panacea Biotec 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