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INVESTMENT INSIGHTS

Check Before You Invest : Fermenta Biotech Ltd

BSE: 506414 NSE: ISIN: INE225B01021
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Fermenta Biotech Ltd belong to?
Fermenta Biotech Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Fermenta Biotech Ltd a good quality company?
Fermenta Biotech Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Fermenta Biotech Ltd undervalued or overvalued?
Fermenta Biotech Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Fermenta Biotech Ltd a good buy now?
Fermenta Biotech 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

Q.1 Revenue growth of Fermenta Biotech Ltd?
Fermenta Biotech Ltd revenue growth is 40.2% for FY-2025 , which is above its 5 year CAGR of 7.5% , indicating faster growth.
Q.2 Gross Profit margin of Fermenta Biotech Ltd?
Fermenta Biotech Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.7% for FY-2025 , which is above its 5 year median of 17.1% , indicating increasing margins.
Q.3 Operating Profit Margin of Fermenta Biotech Ltd?
Fermenta Biotech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.33% for FY-2025 , which is above its 5 year median of 19.79% indicating increasing margins.
Q.4 Net Profit Margin of Fermenta Biotech Ltd?
Fermenta Biotech Ltd Net Profit Margin is 15.71% for FY-2025 , is above with its 5 year median of 7.79%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 22.7 17.1
Operating Profit Margin 24.33 19.79
Net Profit Margin 15.71 7.79
Q.5 Return on Asset of Fermenta Biotech Ltd?
Fermenta Biotech Ltd Return on Asset is 11.14%, which is above its 5 year historical median of 4.08%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Fermenta Biotech Ltd?
Fermenta Biotech Ltd Return on equity is 19.85% for FY-2025 , which is above its historical median of 8.18%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Fermenta Biotech Ltd?
Fermenta Biotech Ltd Return on capital employed is 19.07% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Fermenta Biotech Ltd?
Fermenta Biotech Ltd Cash conversion cycle is 88 days, below its historical median of 141 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.71 0.52
ROE 19.85 8.18
ROCE 19.07 9.85
Cash Conversion Cycle 88 days 141 days
Q.9 Debt to Equity ratio of Fermenta Biotech Ltd?
Fermenta Biotech Ltd Debt-to-Equity ratio is 0.29 , which is above with the industry average of 0.15 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Fermenta Biotech Ltd?
Fermenta Biotech Ltd Debt to cash flow from operations is 3.23 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Fermenta Biotech Ltd?
Promoters hold 64.09% of the Fermenta Biotech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Fermenta Biotech Ltd vs industry peers?
Fermenta Biotech Ltd revenue CAGR is 7.46% , compared to the industry median CAGR of 5.54% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 430.5 137.1
Gross Profit 97.8 15.1
Operating Profit 100 16
Net Profit 68 5.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.71 0.8
ROE 19.85 8.91
ROCE 19.07 11.59
Cash Conversion Cycle (days) 87.56 76

Valuation & price assessment

Q.1 Stock return of Fermenta Biotech Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 18.1% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 18.1% 3.1% 30.6% 14.6%
Q.3 Valuation ratios of Fermenta Biotech Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 13.15 22.53 40.28
Price to Book 2.29 3.13 2.77
Price to Sales 2.05 3.27 2.65
EV to EBITDA 8.24 14.44 15.67

Check more companies

1. Ajanta Pharma
2. JB Chem & Pharma
3. Emcure Pharma
4. Gland Pharma
5. Wockhardt
6. Pfizer
7. Astrazeneca Pharma I
8. Sai Life Sciences
9. Natco Pharma
10. Eris Lifesciences
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