X

FDC Ltd. Stock Analysis

Mid Cap
Evaluated by 2280 users | BSE: 531599 | NSE: FDC |
Pharmaceuticals & Drugs
FDC make modest beginning in 1936, with marketing of vitamins and a range of prescription formulations. FDC set up its first formulations manufacturing facility in 1949. Subsequently, in 1963, FDC pioneered the manufacture of specialized ophthalmic formulations in India. FDC was the first...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
FDC Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 25.65%19.6%18.86%15.07%15.31%16.05%14.48%12.99%12.47%16.13%
Value Creation Index 0.930.340.350.080.090.150.03-0.07-0.110.15
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7006997658378789871,0091,0621,0761,331
Y-o-Y Gr. Rt.--0.2%9.4%9.5%4.9%12.4%2.2%5.3%1.3%23.7%
Adjusted EPS (Rs.) 7.886.947.616.767.569.019.489.369.5813.92
Y-o-Y Gr. Rt.--11.9%9.7%-11.2%11.8%19.2%5.2%-1.3%2.4%45.3%
Book Value per Share (Rs.) 33.1237.5443.0547.252.2260.5371.0672.3882.1690.18
Adjusted Net Profit 145127138120134160169163167238
Net Op. Cash Flow (Rs. Cr.) 119143149149127171153148104239
Debt to Cash Flow from Ops 0.020.010.010.010.010.010.0100.010.02
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
FDC Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.4%8.7%9.7%23.7%
Adjusted EPS 6.5%13%13.7%45.3%
Book Value per Share 11.811.68.39.8
Share Price 15.6% 7.3% 22.9% 88.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 25.5919.5118.7614.8315.215.9714.412.9212.416
Operating Profit Margin (%) 24.2323.3923.8724.3422.4823.0323.9821.2320.4522.19
Net Profit Margin (%) 20.7618.141814.3515.3216.2316.715.3715.5317.88
Debt to Equity 0000000000
Working Capital Days 901039911711281157247271253
Cash Conversion Cycle 34342621222330354140
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 69.24%
Institutions 10.39%
Non-Institutions 20.37%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of FDC Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that FDC Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of FDC Ltd.'s performance infers:

FDC Ltd. earnings have grown by 13%, whereas share price has appreciated 7.3% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of FDC Ltd. share prices over the last 10 years. Here is what we found out:

FDC Ltd. share price has appreciated 12.7% annually over the past ten years.

FDC make modest beginning in 1936, with marketing of vitamins and a range of prescription formulations. FDC set up its first formulations manufacturing facility in 1949. Subsequently, in 1963, FDC pioneered the manufacture of specialized ophthalmic formulations in India. FDC was the first organization to introduce the BFS (Blow-Fill-Seal) technology for ophthalmic in South East Asia. In 1972, FDC initiated the concept of Oral Rehydration Salts (ORS). Today its pioneer brand

FDC make modest beginning in 1936, with marketing of vitamins and a range of prescription formulations. FDC set up its first formulations manufacturing facility in 1949. Subsequently, in 1963, FDC pioneered the manufacture of specialized ophthalmic formulations in India. FDC was the first organization to introduce the BFS (Blow-Fill-Seal) technology for ophthalmic in South East Asia. In 1972, FDC initiated the concept of Oral Rehydration Salts (ORS). Today its pioneer brand ‘Electral’ stands apart with a special identity- an impressive achievement in a fiercely competitive market. FDC’s API plant at Roha (Maharashtra) was among the first few API facilities in India to get US-FDA approval in 1984. Since then, FDC has to its credit a number of new molecules, introduced for the first time in the nation.

After its first US FDA inspection in 1985, the company has undergone over 30 extensive audits by regulatory authorities including the US-FDA, UK-MHRA, SA-MCC and ANVISA (Brazil). Most importantly, its facilities have been approved by these authorities on every occasion.

The company’s regulatory experience has refined its operating systems and procedures; simultaneously, the function specific knowledge and competence of its employees continues to grow. It believes in offering only the best quality products, irrespective of whether the market is regulated or not. It has, therefore, built a strong track record of meeting with the most stringent regulatory requirements, enabling it to deliver high-quality APIs and formulations at competitive prices - worldwide.

Product offered by the company

Therapeutic Products

  • Anti Fungals/Dermatological
  • Anti-Anaemic
  • Anti-Diabetic
  • Anti-Diarrhoeals/ Intestinals/ ORS Anti-Haemorrhagics
  • Anti-Oxidants
  • Anti-Spasmodics
  • Antibiotics/Antibacterials
  • Antiemetic/ Antinauseant etc

Food

  • Anti-Diarrhoeals/ Intestinals/ ORS
  • Anti-Oxidants
  • Vitamins And Nutraceuticals

Bulk Drug

  • Albuterol Sulfate 
  • Betaxolol Hydrochloride
  • Brimonidine Tartrate
  • Bromhexine Hydrochloride
  • Cinnarizine etc

Active Pharmaceutical Ingredients (API) Under Development

  • Azelastine HCl
  • Brinzolamide
  • Duloxetine HCl
  • Gemifloxacine Mesylate
  • Latanoprost
  • Levo-Betaxolol HCl
  • Olopatadine HCl
  • Pregabalin
  • Rupatadine Fumarate
  • Voriconazole

Milestones

  • 2010: FDC's Goa III unit receives UKMHRA approval
  • 2010: FDC International gets approval for Brimonidine Tartrate 0.2% w/v Eye Drops
  • 2008: Received US FDA nod for two ophthalmic products
  • 2008: USFDA approval received for Waluj without any observations (No 483’s)
  • 2007: MHRA approval received for Goa- I
  • 2007: MHRA reapproval received for Waluj
  • 2006: Forbes rates FDC as the “Best under the billion companies”
  • 2005: First US-FDA approval for ophthalmic facility at Waluj
  • 2005: Filed 2 ANDAs for ophthalmic dosage forms in the U.S.
  • 2004: JV in the UK converted to a wholly owned subsidiary
  • 2004: Established JV in South Africa
  • 2002: First UK-MHRA approval for oral solids facility at Goa
  • 1999: Formed a JV in UK
  • 1998: UK-MHRA approval for ophthalmic facility at Waluj
  • 1996:  Public issue of 26, 28, 200 equity shares of Rs. 10 each at a premium of Rs. 90    each
  • 1996: FDC awarded 'Export House' status
  • 1996: FDC established a specialized & dedicated field force to promote its ophthalmic specialties
  • 1994: FDC became the first company in India to introduce ophthalmics in blow-fill-seal packs, which optimize sterility and are highly user friendly
  • 1992: National Award from the Council of Scientific Research and Industry for Indigenous R&D of Flurbiprofen and Timolol
  • 1991: Biotechnology research center set up at Waluj.
  • 1991: Started production of Timolol Maleate (API).
  • 1989: Began commercial production of Flurbiprofen
  • 1987: Commissioned a formulation Plant at Waluj, Aurangabad (Maharashtra)
  • 1985: First US FDA approval of API plant at Roha
  • 1984: Foods division set up for manufacture of specialized infant foods at Roha
  • 1977: Active Pharmaceutical Ingredient (API) plant commissioned at Roha, Maharashtra
  • 1974: FairDeal's R&D facilities obtain recognition from the Govt. of India
  • 1972:  Electral introduced by FairDeal - a result of pioneering work in rehydration therapy
  • 1963: FairDeal introduced Vanmycetin Eye Drops - starting point for its ophthalmic and ENT range
  • 1949: Formulation plant established in Jogeshwari, Mumbai
  • 1936: Anand Chandavarkar set up FairDeal Corporation (FDC) to import drugs, infant foods and surgical appliances for distribution in India.

Award and Recognition

  • 2011 FDC receives Certificate of Appreciation Patents award from Pharmexcil
  • FDC received the Quality Excellence Award from “Indian Drug Manufacturers’ Association” (IDMA) in 1993 and 1994.
  • For breakthrough R&D efforts, FDC has been awarded the “National Award for R&D effort in the industry” by the Department of Scientific Affairs, Ministry of Commerce, Government of India.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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