Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of SMS Pharmaceuticals Ltd

About the Company - SMS Pharmaceuticals Ltd

SMS Pharmaceuticals Ltd. is a Public Limited Listed company incorporated on 14/12/1987 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L24239TG1987PLC008066 and registration number is 008066. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 519.87 Cr. and Equity Capital is Rs. 8.47 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsPlot No. 72, H.No. 8-2-334 / 3 & 4, Road No. 5, Hyderabad Telangana 500034info@smspharma.com
http://www.smspharma.com
Management
NamePosition Held
Mr. Ramesh Babu PotluriChairman & Managing Director
Mr. Vamsi Krishna PotluriExecutive Director
Mr. Sarath Kumar PakalapatiIndependent Director
Mr. Sharvan KudaravalliIndependent Director
Mr. Sarvepalli SrinivasIndependent Director
Dr.(Mrs.) Neelaveni ThummalaIndependent Director

SMS Pharmaceuticals Ltd. Share Price Update

Share PriceValue
Today₹146.30
Previous Day₹130.80

Basic Stock Data of SMS Pharmaceuticals Ltd

Market Cap 1,202 Cr.
Current Price 142
High / Low160/54.5
Stock P/E28.9
Book Value 60.7
Dividend Yield0.21 %
ROCE3.66 %
ROE0.84 %
Face Value 1.00

Data Source: screener.in

Competitors of SMS Pharmaceuticals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Unichem Laboratories Ltd 3,645 Cr. 518580/272 3420.00 %4.58 %7.05 % 2.00
Procter & Gamble Health Ltd 8,416 Cr. 5,0705,643/4,48837.1 4851.88 %45.5 %33.5 % 10.0
Ortin Laboratories Ltd 16.9 Cr. 20.830.4/16.2 12.00.00 %1.80 %0.64 % 10.0
Abbott India Ltd 60,225 Cr. 28,34129,639/19,90652.6 1,4630.63 %41.1 %31.6 % 10.0
IOL Chemicals & Pharmaceuticals Ltd 2,452 Cr. 418536/27214.2 2711.20 %13.7 %9.68 % 10.0
Industry Average14,950.98 Cr6,873.5620.78514.600.74%21.34%16.49%8.40

SMS Pharmaceuticals Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1301491711631751216164159149149135167
Expenses106114130119128946565146131126109139
Operating Profit243441454727-4-01418232728
OPM %18%23%24%27%27%22%-7%-1%9%12%16%20%17%
Other Income1111120112111
Interest3335554556666
Depreciation6668888888888
Profit before tax162734333617-16-1216111315
Tax %31%31%35%29%29%37%156%21%12%22%24%29%21%
Net Profit1118222325119-10158912
EPS in Rs1.332.162.622.742.981.241.07-1.160.090.590.951.101.42

SMS Pharmaceuticals Ltd Quarterly Chart

SMS Pharmaceuticals Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales217248518587611438463465412563520522613
Expenses179284461500522363369375332442405467506
Operating Profit38-365786897593908012111555107
OPM %17%-14%11%15%15%17%20%19%19%22%22%10%17%
Other Income1104216412353554
Interest24241418171615121211192224
Depreciation13141317191920192222323232
Profit before tax130326756426062519169655
Tax %20%15%36%48%26%14%33%34%36%33%1%26%
Net Profit125203542364041336168442
EPS in Rs0.112.532.404.154.924.204.784.893.867.208.030.484.91
Dividend Payout %0%8%8%5%4%5%5%5%6%4%4%62%

SMS Pharmaceuticals Ltd Profit & Loss Yearly Chart

SMS Pharmaceuticals Ltd Growth

Compounded Sales Growth
10 Years:8%
5 Years:2%
3 Years:8%
TTM:41%
Compounded Profit Growth
10 Years:8%
5 Years:-37%
3 Years:-50%
TTM:720%
Stock Price CAGR
10 Years:22%
5 Years:18%
3 Years:6%
1 Year:111%
Return on Equity
10 Years:11%
5 Years:10%
3 Years:10%
Last Year:1%

SMS Pharmaceuticals Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital101088888888888
Reserves211234213246286254293331359420485487505
Borrowings207149167167204149146144157255263254277
Other Liabilities6479120119158897293103147126165221
Total Liabilities4924715095406565015195776278308839141,012
Fixed Assets225147247277370290279281280457438412407
CWIP49963929138818427113343
Investments126613213745454545454545
Other Assets217203217221252166187232259321389424517
Total Assets4924715095406565015195776278308839141,012

SMS Pharmaceuticals Ltd Reserves and Borrowings Chart

SMS Pharmaceuticals Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 20-3365596173325040904522
Cash from Investing Activity 2599-37-55-79-39-17-35-43-152-27-30
Cash from Financing Activity 8-59-30-1027-33-15-13-292-12-32
Net Cash Flow527-2-69102-5316-39

SMS Pharmaceuticals Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days6552393736181920436834104
Inventory Days4211929081106114135170191148333243
Days Payable10883595879824959667097123
Cash Conversion Cycle37716170616350105131169146270224
Working Capital Days213126656263487395111115172196
ROCE %6%-12%12%21%16%13%18%16%13%17%12%4%

SMS Pharmaceuticals Ltd Financial Efficiency Indicators Chart

SMS Pharmaceuticals Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters67.29%67.29%67.29%67.29%67.29%64.17%64.17%64.17%64.29%64.32%64.32%64.32%
FIIs0.56%0.91%0.94%0.65%0.61%0.63%0.59%0.59%0.59%0.67%0.60%0.59%
Public32.15%31.79%31.76%32.06%32.10%35.20%35.23%35.23%35.12%35.01%35.07%35.10%
No. of Shareholders19,87825,60124,60824,95927,51626,63826,49126,52625,53724,65325,24625,341

SMS Pharmaceuticals Ltd Shareholding Pattern Chart

No. of SMS Pharmaceuticals Ltd Shareholders

SMS Pharmaceuticals Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Motilal Oswal S&P BSE Healthcare ETF2790.040

SMS Pharmaceuticals Ltd ROCE Trend

SMS Pharmaceuticals Ltd EPS Trend

SMS Pharmaceuticals Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)-0.837.357.393.734.73
Diluted EPS (Rs.)-0.837.357.393.734.73
Cash EPS (Rs.)4.2511.829.836.477.17
Book Value[Excl.RevalReserv]/Share (Rs.)54.4055.5648.5041.1438.03
Book Value[Incl.RevalReserv]/Share (Rs.)54.4055.5648.5041.1438.03
Revenue From Operations / Share (Rs.)61.6761.4166.5348.6654.92
PBDIT / Share (Rs.)7.0214.1214.7110.0511.05
PBIT / Share (Rs.)3.2210.3212.087.448.77
PBT / Share (Rs.)0.638.0910.766.007.37
Net Profit / Share (Rs.)0.458.027.203.864.90
NP After MI And SOA / Share (Rs.)-0.837.357.393.734.73
PBDIT Margin (%)11.3722.9922.1120.6420.11
PBIT Margin (%)5.2216.8018.1615.2815.96
PBT Margin (%)1.0213.1716.1712.3213.41
Net Profit Margin (%)0.7413.0510.827.938.91
NP After MI And SOA Margin (%)-1.3511.9611.107.668.61
Return on Networth / Equity (%)-1.5313.2315.239.0612.44
Return on Capital Employeed (%)4.3613.1716.5413.6017.97
Return On Assets (%)-0.807.237.695.197.16
Long Term Debt / Equity (X)0.260.310.360.190.18
Total Debt / Equity (X)0.540.550.530.370.40
Asset Turnover Ratio (%)0.600.610.780.690.86
Current Ratio (X)1.611.921.591.511.42
Quick Ratio (X)0.730.640.880.610.48
Inventory Turnover Ratio (X)1.261.992.351.952.52
Dividend Payout Ratio (NP) (%)-35.974.080.0016.166.37
Dividend Payout Ratio (CP) (%)10.132.690.009.514.30
Earning Retention Ratio (%)135.9795.920.0083.8493.63
Cash Earning Retention Ratio (%)89.8797.310.0090.4995.70
Interest Coverage Ratio (X)2.716.3311.166.967.87
Interest Coverage Ratio (Post Tax) (X)1.184.606.463.684.49
Enterprise Value (Cr.)734.331007.491231.25345.32641.85
EV / Net Operating Revenue (X)1.411.942.190.831.38
EV / EBITDA (X)12.368.439.884.066.86
MarketCap / Net Operating Revenue (X)0.931.531.870.541.13
Retention Ratios (%)135.9795.910.0083.8393.62
Price / BV (X)1.061.692.570.641.64
Price / Net Operating Revenue (X)0.931.531.870.541.13
EarningsYield-0.010.070.050.130.07

SMS Pharmaceuticals Ltd Profitability Ratios (%)

SMS Pharmaceuticals Ltd Liquidity Ratios

SMS Pharmaceuticals Ltd Liquidity Ratios (%)

SMS Pharmaceuticals Ltd Interest Coverage Ratios (X)

SMS Pharmaceuticals Ltd Valuation Ratios

Fair Value / Intrinsic Value of SMS Pharmaceuticals Ltd

Fair Value: ₹14.77

The stock is overvalued by 89.60% compared to the current price ₹142

*Investments are subject to market risks

Strength and Weakness of SMS Pharmaceuticals Ltd

StrengthWeakness
  1. The company has higher reserves (332.62 cr) compared to borrowings (195.31 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (475.15 cr) and profit (47.85 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 8.37 and average Dividend Yield of 14.28%.
  2. The stock has a low average ROCE of 11.33%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 111.58, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 152.25, which may not be favorable.

Should I Buy SMS Pharmaceuticals Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in SMS Pharmaceuticals Ltd:
    1. Net Profit Margin: 0.74%
      • 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: 4.36% (Industry Average ROCE: 21.12%)
      • 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. Interest Coverage Ratio (Post Tax): 1.18
      • 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.
    4. Quick Ratio: 0.73
      • 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.
    5. ✗ Stock P/E: 30.3 (Industry average Stock P/E: 19.88)
      • 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.
    6. ✓ Total Debt / Equity: 0.54
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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 SMS 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