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Check Before You Invest : Bharat Parenterals Ltd

BSE: 541096 NSE: ISIN: INE365Y01019
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Bharat Parenterals Ltd belong to?
Bharat Parenterals Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Bharat Parenterals Ltd a good quality company?
Bharat Parenterals Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Bharat Parenterals Ltd undervalued or overvalued?
Bharat Parenterals Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 56.83 13.27
Price to Book 2.26 1.71
Price to Sales 3.89 1.36
EV to EBITDA 27.44 8.08
Q.4 Is Bharat Parenterals Ltd a good buy now?
Bharat Parenterals Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Bharat Parenterals Ltd?
Bharat Parenterals Ltd revenue growth is 17.9% for FY-2025, which is above its 5-year CAGR of 6.09%, indicating faster growth.

Q.2 Gross Profit margin of Bharat Parenterals Ltd?
Bharat Parenterals Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.2% for FY-2025, which is in line with its 5-year median of 14.4%, indicating stable margins.

Q.3 Operating Profit Margin of Bharat Parenterals Ltd?
Bharat Parenterals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.39% for FY-2025, which is below its 5-year median of 12.34% indicating decreasing margins.

Q.4 Net Profit Margin of Bharat Parenterals Ltd?
Bharat Parenterals Ltd Net Profit Margin is 8.7% for FY-2025, is below its 5-year median of 9.92%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 14.2 14.4
Operating Profit Margin (%) 11.39 12.34
Net Profit Margin (%) 8.7 9.92

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Bharat Parenterals Ltd?
Bharat Parenterals Ltd Return on Asset is 5.6%, which is below its 5-year historical median of 9.25%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Bharat Parenterals Ltd?
Bharat Parenterals Ltd Return on capital employed is 10.99% for FY-2025, which is below its 5-year historical median of 16.62%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Bharat Parenterals Ltd?
Bharat Parenterals Ltd Return on equity is 8.81% for FY-2025, which is below its 5-year historical median of 13.65%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Bharat Parenterals Ltd?
Bharat Parenterals Ltd Cash conversion cycle is 159 days, above its 5-year historical median of 113 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.65 0.96
ROE (%) 8.81 13.65
ROCE (%) 10.99 16.62
Cash Conversion Cycle 159 days 113 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Bharat Parenterals Ltd?
Bharat Parenterals Ltd Debt-to-Equity ratio is 0.17, which is above the industry average of 0.14, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Bharat Parenterals Ltd?
Bharat Parenterals Ltd Debt to cash flow from operations is 3.37, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Bharat Parenterals Ltd?

Q.1 Promoter shareholding and pledge status of Bharat Parenterals Ltd?
Promoters hold 67.17% of the Bharat Parenterals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Bharat Parenterals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Bharat Parenterals Ltd vs industry peers?
Bharat Parenterals Ltd revenue CAGR is 6.09%, compared to the industry median CAGR of 5.35%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 17.9 5.4
Gross Profit Growth (%) 16.2 14
Operating Profit Growth (%) 3 11.5
Net Profit Growth (%) 13 12
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.65 0.79
ROE (%) 8.81 9.17
ROCE (%) 10.99 11.52
Cash Conversion Cycle (days) 158.86 76

Valuation & price assessment

Q.1 Stock return of Bharat Parenterals Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 27.25% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 27.3% 56% 13.3%
Q.2 Valuation ratios of Bharat Parenterals Ltd vs historical?
The current P/E ratio of 56.83 is higher than its historical median of 13.27, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 56.83 13.27 31.09
Price to Book 2.26 1.71 2.85
Price to Sales 3.89 1.36 2.82
EV to EBITDA 27.44 8.08 15.99

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