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Last Updated on: 24 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of SMS Pharmaceuticals Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:13 pm

Market Cap 1,761 Cr.
Current Price 208
High / Low222/88.0
Stock P/E35.6
Book Value 67.4
Dividend Yield0.14 %
ROCE11.2 %
ROE9.28 %
Face Value 1.00
PEG Ratio7.22

Competitors of SMS Pharmaceuticals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Brooks Laboratories Ltd 237 Cr. 90.2186/72.5 25.00.00 %24.7 %28.1 % 10.0
Bharat Immunological & Biological Corporation Ltd 130 Cr. 30.143.9/20.5 18.20.00 %9.27 %17.7 % 10.0
Krebs Biochemicals & Industries Ltd 152 Cr. 70.594.0/60.0 55.30.00 %10.4 %% 10.0
Par Drugs & Chemicals Ltd 279 Cr. 227325/17819.2 69.60.00 %25.0 %18.5 % 10.0
Neuland Laboratories Ltd 8,615 Cr. 6,7057,794/2,77328.7 1,0000.21 %33.2 %26.4 % 10.0
Industry Average15,440.62 Cr1,221.0938.41197.570.36%17.39%16.79%6.57

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1711631751216164159149149135167161246
Expenses130119128946565146131126109139133212
Operating Profit41454727-4-014182327282933
OPM %24%27%27%22%-7%-1%9%12%16%20%17%18%14%
Other Income1112011211112
Interest3555455666666
Depreciation6888888888888
Profit before tax34333617-16-12161113151622
Tax %35%29%29%37%156%21%12%22%24%29%21%26%26%
Net Profit222325119-101589121216
EPS in Rs2.622.742.981.241.07-1.160.090.590.951.101.421.441.88

Last Updated: June 9, 2024, 9:52 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:08 am

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%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)2400.00%-20.00%75.00%20.00%-14.29%11.11%2.50%-19.51%84.85%11.48%-94.12%
Change in YoY Net Profit Growth (%)0.00%-2420.00%95.00%-55.00%-34.29%25.40%-8.61%-22.01%104.36%-73.37%-105.59%

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:25%
5 Years:27%
3 Years:13%
1 Year:184%
Return on Equity
10 Years:11%
5 Years:10%
3 Years:10%
Last Year:1%

Last Updated: April 13, 2024, 9:23 am

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

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

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow38.00-185.00-110.00-81.00-115.00-74.00-53.00-54.00-77.00-134.00-148.00-199.00

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 Days6552393736181920436834104
Inventory Days4211929081106114135170191148333243
Days Payable10883595879824959667097123
Cash Conversion Cycle37716170616350105131169146270224
Working Capital Days213126656263487395111115172196
ROCE %6%-12%12%21%16%13%18%16%13%17%12%4%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters67.29%67.29%67.29%67.29%64.17%64.17%64.17%64.29%64.32%64.32%64.32%64.67%
FIIs0.91%0.94%0.65%0.61%0.63%0.59%0.59%0.59%0.67%0.60%0.59%0.17%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%1.98%
Public31.79%31.76%32.06%32.10%35.20%35.23%35.23%35.12%35.01%35.07%35.10%33.18%
No. of Shareholders25,60124,60824,95927,51626,63826,49126,52625,53724,65325,24625,34130,140

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 ETF2790.0402792024-06-150%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)5.89-0.837.357.393.73
Diluted EPS (Rs.)5.89-0.837.357.393.73
Cash EPS (Rs.)9.544.2511.829.836.47
Book Value[Excl.RevalReserv]/Share (Rs.)63.3654.4055.5648.5041.14
Book Value[Incl.RevalReserv]/Share (Rs.)63.3654.4055.5648.5041.14
Revenue From Operations / Share (Rs.)83.7961.6761.4166.5348.66
PBDIT / Share (Rs.)14.307.0214.1214.7110.05
PBIT / Share (Rs.)10.583.2210.3212.087.44
PBT / Share (Rs.)7.810.638.0910.766.00
Net Profit / Share (Rs.)5.810.458.027.203.86
NP After MI And SOA / Share (Rs.)5.89-0.837.357.393.73
PBDIT Margin (%)17.0711.3722.9922.1120.64
PBIT Margin (%)12.625.2216.8018.1615.28
PBT Margin (%)9.321.0213.1716.1712.32
Net Profit Margin (%)6.930.7413.0510.827.93
NP After MI And SOA Margin (%)7.02-1.3511.9611.107.66
Return on Networth / Equity (%)9.29-1.5313.2315.239.06
Return on Capital Employeed (%)12.754.3613.1716.5413.60
Return On Assets (%)4.81-0.807.237.695.19
Long Term Debt / Equity (X)0.220.260.310.360.19
Total Debt / Equity (X)0.520.540.550.530.37
Asset Turnover Ratio (%)0.740.600.610.780.69
Current Ratio (X)1.611.611.921.591.51
Quick Ratio (X)0.900.730.640.880.61
Inventory Turnover Ratio (X)1.861.261.992.351.95
Dividend Payout Ratio (NP) (%)0.00-35.974.080.0016.16
Dividend Payout Ratio (CP) (%)0.0010.132.690.009.51
Earning Retention Ratio (%)0.00135.9795.920.0083.84
Cash Earning Retention Ratio (%)0.0089.8797.310.0090.49
Interest Coverage Ratio (X)5.162.716.3311.166.96
Interest Coverage Ratio (Post Tax) (X)3.101.184.606.463.68
Enterprise Value (Cr.)1751.21734.331007.491231.25345.32
EV / Net Operating Revenue (X)2.471.411.942.190.83
EV / EBITDA (X)14.4612.368.439.884.06
MarketCap / Net Operating Revenue (X)2.130.931.531.870.54
Retention Ratios (%)0.00135.9795.910.0083.83
Price / BV (X)2.811.061.692.570.64
Price / Net Operating Revenue (X)2.130.931.531.870.54
EarningsYield0.03-0.010.070.050.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 222.98

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.

Undervalued: 7.20% compared to the current price 208

Intrinsic Value: 233.97

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: 12.49% compared to the current price ₹208

Last 5 Year EPS CAGR: 4.93%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (347.50 cr) compared to borrowings (194.67 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 has a low average ROCE of 11.33%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 111.58, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 152.25, 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 SMS Pharmaceuticals Ltd:
    1. Net Profit Margin: 6.93%
      • 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: 12.75% (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%: 9.29% (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): 3.10
      • 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: 0.90
      • 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: 35.6 (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: 0.52
      • 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

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

FAQ

What is the latest fair value of SMS Pharmaceuticals Ltd?

The latest fair value of SMS Pharmaceuticals Ltd is ₹222.98.

What is the Market Cap of SMS Pharmaceuticals Ltd?

The Market Cap of SMS Pharmaceuticals Ltd is 1,761 Cr..

What is the current Stock Price of SMS Pharmaceuticals Ltd as on 24 June 2024?

The current stock price of SMS Pharmaceuticals Ltd as on 24 June 2024 is ₹208.

What is the High / Low of SMS Pharmaceuticals Ltd stocks in FY 2024?

In FY 2024, the High / Low of SMS Pharmaceuticals Ltd stocks is 222/88.0.

What is the Stock P/E of SMS Pharmaceuticals Ltd?

The Stock P/E of SMS Pharmaceuticals Ltd is 35.6.

What is the Book Value of SMS Pharmaceuticals Ltd?

The Book Value of SMS Pharmaceuticals Ltd is 67.4.

What is the Dividend Yield of SMS Pharmaceuticals Ltd?

The Dividend Yield of SMS Pharmaceuticals Ltd is 0.14 %.

What is the ROCE of SMS Pharmaceuticals Ltd?

The ROCE of SMS Pharmaceuticals Ltd is 11.2 %.

What is the ROE of SMS Pharmaceuticals Ltd?

The ROE of SMS Pharmaceuticals Ltd is 9.28 %.

What is the Face Value of SMS Pharmaceuticals Ltd?

The Face Value of SMS Pharmaceuticals 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 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