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Check Before You Invest : Wockhardt Ltd

BSE: 532300 NSE: WOCKPHARMA ISIN: INE049B01025
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Wockhardt Ltd belong to?
Wockhardt Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Wockhardt Ltd a good quality company?
Wockhardt Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Wockhardt Ltd undervalued or overvalued?
Wockhardt Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Wockhardt Ltd a good buy now?
Wockhardt Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Wockhardt Ltd?
Wockhardt Ltd revenue growth is 7.7% for FY-2025 , which is above its 5 year CAGR of 1.2% , indicating faster growth.
Q.2 Gross Profit margin of Wockhardt Ltd?
Wockhardt Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.2% for FY-2025 , which is above its 5 year median of -1.9% , indicating increasing margins.
Q.3 Operating Profit Margin of Wockhardt Ltd?
Wockhardt Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.18% for FY-2025 , which is above its 5 year median of 3.85% indicating increasing margins.
Q.4 Net Profit Margin of Wockhardt Ltd?
Wockhardt Ltd Net Profit Margin is -1.89% for FY-2025 , is above with its 5 year median of -10.97%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 5.2 -1.9
Operating Profit Margin 13.18 3.85
Net Profit Margin -1.89 -10.97
Q.5 Return on Asset of Wockhardt Ltd?
Wockhardt Ltd Return on Asset is -0.78%, which is above its 5 year historical median of -3.93%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Wockhardt Ltd?
Wockhardt Ltd Return on equity is -1.48% for FY-2025 , which is above its historical median of -9.92%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Wockhardt Ltd?
Wockhardt Ltd Return on capital employed is 4.07% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 13.5%, indicating value preservation.
Q.8 Cash conversion cycle of Wockhardt Ltd?
Wockhardt Ltd Cash conversion cycle is 25 days, above its historical median of 15 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.53 0.58
ROE -1.48 -9.92
ROCE 4.07 -2.15
Cash Conversion Cycle 25 days 15 days
Q.9 Debt to Equity ratio of Wockhardt Ltd?
Wockhardt Ltd Debt-to-Equity ratio is 0.43 , 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 Wockhardt Ltd?
Wockhardt Ltd Debt to cash flow from operations is -84.5 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Wockhardt Ltd?
Promoters hold 49.08% of the Wockhardt Ltd, with 18.04% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Wockhardt Ltd vs industry peers?
Wockhardt Ltd revenue CAGR is 1.15% , compared to the industry median CAGR of 5.54% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 3,012 137.1
Gross Profit 156.6 15.1
Operating Profit 393 16
Net Profit -57 5.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.53 0.8
ROE -1.48 8.91
ROCE 4.07 11.59
Cash Conversion Cycle (days) 25.29 76

Valuation & price assessment

Q.1 Stock return of Wockhardt Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 3.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 3.7% 27.1% 100.2% 3.3%
Q.3 Valuation ratios of Wockhardt Ltd vs historical?
The current P/E is higher 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 1006.09 5.00 40.28
Price to Book 4.78 1.50 2.77
Price to Sales 7.02 1.33 2.65
EV to EBITDA 42.35 76.24 15.67

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