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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

Par Drugs & Chemicals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:40 pm

Market Cap 346 Cr.
Current Price 281
High / Low325/190
Stock P/E19.0
Book Value 78.6
Dividend Yield0.00 %
ROCE25.0 %
ROE18.5 %
Face Value 10.0
PEG Ratio0.78

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

View Share Price Target for Par Drugs & Chemicals Ltd

Competitors of Par Drugs & Chemicals 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 Par Drugs & Chemicals Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales16.2116.4819.5916.9222.0823.5124.8222.9324.4922.9325.8924.0022.82
Expenses11.9012.3615.5513.3617.5619.8118.9219.7019.1018.7918.5318.7716.72
Operating Profit4.314.124.043.564.523.705.903.235.394.147.365.236.10
OPM %26.59%25.00%20.62%21.04%20.47%15.74%23.77%14.09%22.01%18.05%28.43%21.79%26.73%
Other Income0.100.040.030.050.070.150.020.040.030.010.050.23-0.05
Interest0.260.030.230.100.090.050.030.030.030.020.030.020.05
Depreciation0.730.800.830.770.870.730.910.740.850.830.850.870.89
Profit before tax3.423.333.012.743.633.074.982.504.543.306.534.575.11
Tax %28.95%26.13%26.25%22.63%33.06%25.08%25.10%25.20%24.01%25.15%25.27%25.16%27.20%
Net Profit2.432.462.222.122.422.293.731.873.452.474.893.423.72
EPS in Rs1.982.001.801.721.971.863.031.522.802.013.972.783.02

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales15192733334942465661759697
Expenses14152026264034384645597875
Operating Profit13777888916161822
OPM %9%18%27%22%22%17%19%18%17%26%22%19%23%
Other Income0000000002000
Interest0144422211000
Depreciation0122333333333
Profit before tax12111333615131519
Tax %2%34%40%27%58%42%42%24%21%21%27%25%
Net Profit1111022351291114
EPS in Rs4.742.071.331.650.783.432.782.793.879.447.499.2111.56
Dividend Payout %0%0%0%0%0%0%0%0%32%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2011-20122014-20152015-20162017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%0.00%-100.00%0.00%50.00%66.67%140.00%-25.00%22.22%
Change in YoY Net Profit Growth (%)0.00%0.00%-100.00%100.00%50.00%16.67%73.33%-165.00%47.22%

Par Drugs & Chemicals Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2011-2012 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:16%
3 Years:16%
TTM:8%
Compounded Profit Growth
10 Years:35%
5 Years:42%
3 Years:13%
TTM:44%
Stock Price CAGR
10 Years:%
5 Years:64%
3 Years:15%
1 Year:23%
Return on Equity
10 Years:16%
5 Years:18%
3 Years:17%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:55 pm

MonthMar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital33333346612121212
Reserves6899111225344648597384
Borrowings16443836312912680000
Other Liabilities47910121011131619181619
Total Liabilities2961595856545160767989102116
Fixed Assets14474543423936343034384140
CWIP6000000150000
Investments00000000000026
Other Assets9141315141515254244506050
Total Assets2961595856545160767989102116

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +159794281281320
Cash from Investing Activity +-7-6-0-0-2-1-0-10-3-7-6
Cash from Financing Activity +62-9-5-8-4-212-1000
Net Cash Flow01-11-10-0714-5614

Free Cash Flow

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow1.00-13.00-37.00-31.00-29.00-23.00-21.00-4.003.008.0016.0018.00

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 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days6710483816175678175906552
Inventory Days1291111586983814550604945
Days Payable17118418313510794961121357358
Cash Conversion Cycle67621057-551553013144040
Working Capital Days1141026166-418473944615040
ROCE %12%10%9%12%11%12%16%25%22%23%25%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters73.86%73.98%74.21%74.21%74.21%74.21%74.21%74.21%74.21%74.21%74.21%74.21%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.07%0.07%0.32%
DIIs0.00%0.00%0.05%0.12%0.00%0.00%0.00%0.00%0.00%0.00%0.05%0.00%
Public26.13%26.02%25.75%25.68%25.79%25.79%25.79%25.79%25.79%25.73%25.68%25.47%
No. of Shareholders1,3823,5144,0344,2625,0715,6765,5855,6865,9027,0207,4038,022

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)11.789.217.4918.877.75
Diluted EPS (Rs.)11.789.217.4918.877.75
Cash EPS (Rs.)14.5811.8410.1523.4512.23
Book Value[Excl.RevalReserv]/Share (Rs.)69.5957.9048.6684.8766.02
Book Value[Incl.RevalReserv]/Share (Rs.)69.5957.9048.6684.8766.02
Dividend / Share (Rs.)0.000.001.250.001.25
Revenue From Operations / Share (Rs.)77.7377.8161.0198.7590.78
PBDIT / Share (Rs.)18.7414.9913.3626.3415.52
PBIT / Share (Rs.)15.9512.3610.6921.7511.03
PBT / Share (Rs.)15.8612.2510.3220.719.74
Net Profit / Share (Rs.)11.799.217.4918.877.75
PBDIT Margin (%)24.1119.2621.8926.6617.09
PBIT Margin (%)20.5115.8817.5222.0212.15
PBT Margin (%)20.4015.7416.9220.9710.72
Net Profit Margin (%)15.1611.8312.2719.118.53
Return on Networth / Equity (%)16.9315.9115.3822.2311.73
Return on Capital Employeed (%)22.0020.3120.6122.1513.77
Return On Assets (%)14.2712.7511.7015.207.92
Long Term Debt / Equity (X)0.000.000.000.080.11
Total Debt / Equity (X)0.000.000.000.140.11
Asset Turnover Ratio (%)1.001.140.960.891.00
Current Ratio (X)4.793.532.932.582.23
Quick Ratio (X)4.463.152.612.391.96
Inventory Turnover Ratio (X)6.978.137.687.476.15
Dividend Payout Ratio (NP) (%)0.000.0016.690.0032.27
Dividend Payout Ratio (CP) (%)0.000.0012.310.0020.43
Earning Retention Ratio (%)0.000.0083.310.0067.73
Cash Earning Retention Ratio (%)0.000.0087.690.0079.57
Interest Coverage Ratio (X)215.31138.4836.1925.2212.03
Interest Coverage Ratio (Post Tax) (X)136.4086.0921.2815.997.00
Enterprise Value (Cr.)228.45150.02180.3662.6416.62
EV / Net Operating Revenue (X)2.391.572.401.030.29
EV / EBITDA (X)9.918.1310.973.871.74
MarketCap / Net Operating Revenue (X)2.771.802.621.250.34
Retention Ratios (%)0.000.0083.300.0067.72
Price / BV (X)3.102.423.281.460.47
Price / Net Operating Revenue (X)2.771.802.621.250.34
EarningsYield0.050.060.040.150.24

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Par Drugs & Chemicals Ltd as of November 21, 2024 is: 281.80

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, Par Drugs & Chemicals Ltd is Undervalued by 0.28% compared to the current share price 281.00

Intrinsic Value of Par Drugs & Chemicals Ltd as of November 21, 2024 is: 350.74

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, Par Drugs & Chemicals Ltd is Undervalued by 24.82% compared to the current share price 281.00

Last 5 Year EPS CAGR: 24.47%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (32.62 cr) compared to borrowings (16.92 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (49.92 cr) and profit (6.38 cr) over the years.
  1. The stock has a low average ROCE of 14.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 53.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 36.17, 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 Par Drugs & Chemicals Ltd:
    1. Net Profit Margin: 15.16%
      • 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: 22% (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%: 16.93% (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): 136.4
      • 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: 4.46
      • 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: 19 (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
      • 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

Par Drugs & Chemicals Ltd. is a Public Limited Listed company incorporated on 26/02/1999 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24117GJ1999PLC035512 and registration number is 035512. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 75.07 Cr. and Equity Capital is Rs. 12.30 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Pharmaceuticals815, Nilamber Triumph, Vadodra Gujarat 390007investors@pardrugs.com
http://www.pardrugs.com
Management
NamePosition Held
Mr. Falgun Vallabhbhai SavaniChairman & Managing Director
Mr. Jignesh Vallabhbhai SavaniExecutive Director & CEO
Mr. Ghanshayambhai Bhagvanbhai SavaniWhole Time Director
Mrs. Nayna Jignesh SavaniNon Executive Director
Mr. Pravin Manjibhai BhayaniIndependent Director
Mrs. Kajal Chintanbhai VaghaniIndependent Director
Mrs. Krishna Mitulbhai ShahIndependent Director
Mrs. Bintal Bhaveshkumar ShahIndependent Director

FAQ

What is the latest intrinsic value of Par Drugs & Chemicals Ltd?

The latest intrinsic value of Par Drugs & Chemicals Ltd as on 21 November 2024 is ₹281.80, which is 0.28% higher than the current market price of ₹281.00.

What is the Market Cap of Par Drugs & Chemicals Ltd?

The Market Cap of Par Drugs & Chemicals Ltd is 346 Cr..

What is the current Stock Price of Par Drugs & Chemicals Ltd as on 21 November 2024?

The current stock price of Par Drugs & Chemicals Ltd as on 21 November 2024 is ₹281.

What is the High / Low of Par Drugs & Chemicals Ltd stocks in FY 2024?

In FY 2024, the High / Low of Par Drugs & Chemicals Ltd stocks is 325/190.

What is the Stock P/E of Par Drugs & Chemicals Ltd?

The Stock P/E of Par Drugs & Chemicals Ltd is 19.0.

What is the Book Value of Par Drugs & Chemicals Ltd?

The Book Value of Par Drugs & Chemicals Ltd is 78.6.

What is the Dividend Yield of Par Drugs & Chemicals Ltd?

The Dividend Yield of Par Drugs & Chemicals Ltd is 0.00 %.

What is the ROCE of Par Drugs & Chemicals Ltd?

The ROCE of Par Drugs & Chemicals Ltd is 25.0 %.

What is the ROE of Par Drugs & Chemicals Ltd?

The ROE of Par Drugs & Chemicals Ltd is 18.5 %.

What is the Face Value of Par Drugs & Chemicals Ltd?

The Face Value of Par Drugs & Chemicals 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 Par Drugs & Chemicals 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