MoneyWorks4Me

Check Before You Invest : Godavari Drugs Ltd

BSE: 530317 NSE: ISIN: INE362C01012
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Godavari Drugs Ltd belong to?
Godavari Drugs Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Godavari Drugs Ltd a good quality company?
Godavari Drugs Ltd is a weak quality company, based on a inconsistent 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 Godavari Drugs Ltd undervalued or overvalued?
Godavari Drugs 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 0-year
Historic Median
Price to Earnings - 3.78
Price to Book - 1.00
Price to Sales - 0.06
EV to EBITDA - 5.17
Q.4 Is Godavari Drugs Ltd a good buy now?
Godavari Drugs 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.

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

Q.1 Debt to Equity ratio of Godavari Drugs Ltd?
Godavari Drugs Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of , indicating similar to debt levels in the industry.

Q.2 Debt to cash flow from operations of Godavari Drugs Ltd?
Godavari Drugs Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Godavari Drugs Ltd?

Q.1 Promoter shareholding and pledge status of Godavari Drugs Ltd?
Promoters hold 40.23% of the Godavari Drugs Ltd, with 0.21% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Godavari Drugs Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Godavari Drugs Ltd vs industry peers?
Godavari Drugs Ltd revenue CAGR is %, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) - 20.4
Operating Profit Growth (%) - 17.1
Net Profit Growth (%) - 18
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) - 0.61
ROE (%) - 2.13
ROCE (%) - 3.74
Cash Conversion Cycle (days) - 46

Valuation & price assessment

Q.1 Stock return of Godavari Drugs Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 12.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
12.1% 9.5% 5.4% 44.7%
Q.2 Valuation ratios of Godavari Drugs Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 3.78, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings - 3.78 -
Price to Book - 1.00 -
Price to Sales - 0.06 -
EV to EBITDA - 5.17 -

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