Fermenta Biotech Ltd Stock Analysis

BSE: 506414 | NSE: | Pharmaceuticals & Drugs | Small Cap

BSE Share Price 26-Sep-2022 18:01
197.05 -8.90 (-4.32%)

DeciZen - Make an Informed Decision on Fermenta Biotech

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Fermenta Biotech Price Chart

P/E Ratio (SA) :
32.76
Market Cap :
606.1 Cr.
52-wk low :
176
52-wk high :
334
Bole Toh?

1. Is Fermenta Biotech Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Fermenta Biotech Ltd is a below average quality company.

2. Is Fermenta Biotech Ltd undervalued or overvalued?

The key valuation ratios of Fermenta Biotech Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Fermenta Biotech Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Fermenta Biotech Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Fermenta Biotech:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Fermenta Biotech Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 5.5%1.3%0.6%-5.8%-10.1%-7.3%39.2%15.6%11.4%6.5%-
Value Creation Index -0.6-0.9-1.0-1.4-1.7-1.51.80.1-0.2-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1815.213.56.15.512.5405301373388364
YoY Gr. Rt. %--15.7%-11%-54.6%-10.1%126.6%3,134.8%-25.7%24.1%4.1%-
Adj EPS 20.50.3-3.3-6.6-7.24221.817.79.66.3
YoY Gr. Rt. %--73.9%-47.1%-1318.5%NANANA-48.1%-18.8%-46.1%-
BVPS (₹) 34.333.833.63032.623.586.7106.3124.3132.2130
Adj Net Profit 5.41.40.7-9.1-18.3-19.911662.951.127.619
Cash Flow from Ops. 111.9-0.4-5-9.11.390.529.86350.4-
Debt/CF from Ops. 0.513.7-93.3-11-4.9107.92.37.43.64.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 40.6%134.1%-1.4%4.1%
Adj EPS 19.3%NA-39%-46.1%
BVPS 16.232.315.16.4
Share Price 12.9% 29.5% -14.3% -28.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 5.71.50.8-10.3-21.2-25.873.622.4157.24.8
Op. Profit Mgn % 50.528.321.5-98.9-154-26.535.52325.719.815.5
Net Profit Mgn % 29.89.35.5-147.6-331.3-159.228.620.913.77.15.1
Debt to Equity 0.10.30.40.70.52.20.90.70.60.6-
Working Cap Days 3414244398661,0205201113043083550
Cash Conv. Cycle -3-8-15-24-16-20351291411680

Recent Performance Summary

Debt to equity has declined versus last 3 years average to 0.62

Return on Equity has declined versus last 3 years average to 4.80%

Sales growth has been subdued in last 3 years -1.40%

Net Profit has been subdued in last 3 years -38.98%

Sales growth is not so good in last 4 quarters at -3.70%

Latest Financials - Fermenta Biotech Ltd.

Standalone Consolidated
TTM EPS (₹) 6.3 0.6
TTM Sales (₹ Cr.) 364 381
BVPS (₹.) 130 120.7
Reserves (₹ Cr.) 368 340
P/BV 1.58 1.72
PE 32.76 335.09
From the Market
52 Week Low / High (₹) 176.00 / 334.00
All Time Low / High (₹) 4.90 / 442.00
Market Cap (₹ Cr.) 606
Equity (₹ Cr.) 14.7
Face Value (₹) 5
Industry PE 37.9

Management X-Ray of Fermenta Biotech :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Fermenta Biotech

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Fermenta Biotech Ltd

DIL Ltd. formerly Duphar-Interfran Limited is an Indian public listed company located at Thane, India. Founded in 1951 by Late Dr. D V K Raju in the name of International Franchises Private Limited. DIL has built successful partnerships with leading multinational companies for over 53 years. The name of the company was then changed to ‘Crookes Interfran Limited’ and then in 1971 the name was changed to ‘Duphar Interfran Ltd.’. In the year 1976, the company’s equity shares were listed on the Stock Exchange of Bombay (BSE). In 2000, the company demerged its pharmaceutical business into a new company called Duphar Pharma India Ltd. (currently known as Solvay Pharma India Ltd.) which issued to the shareholders of Duphar Interfran Ltd., 2 equity shares of Duphar Pharma India Ltd. for every 1 share held in Duphar Interfran Ltd. by the shareholders at that time, while retaining their original share in Duphar Interfran Ltd. The name of the company was then changed to DIL Limited.

Currently, DIL is engaged in the business of research support services through its subsidiary Research Support International Ltd. (RSIL), manufacture and marketing of enzymes and chemicals through its subsidiary Fermenta Biotech Ltd. (FBL), entertainment through its subsidiary White Stripes Entertainment Ltd. (WSEL) and manufacture and marketing of levitation technology and wheel chairs through its Joint Venture company, being set up in the Czech Republic.

With the growing global need for newer drugs and for research, DIL, with its capabilities, becomes a preferred partner for undertaking contract research and custom synthesis.

Specializing in synthesis of fine organic compounds, chiral building blocks and Intermediates, their expertise include developing small size, aromatic & non-aromatic, functionalized heterocycles, enzyme mediated asymmetric synthesis of hydroxyesters, protection of amino acids at amino and carboxyl functionalities and synthesis of compounds having peptide linkage.

From its fully-equipped and modern facilities, the multi-cultural team at DIL strives to offer the best services in organic synthesis and industrial biotechnology.  Qualified synthetic chemists develop and produce tailor-made compounds (Gms to multi-kegs) for the pharmaceutical and biotechnology industries. Their services cover both individual projects, as well as working exclusively as permanent team members for clients.

Offering expertise on both short and long-term projects, DIL seamlessly blends in as an extension of the client company, offering flexible and integrated services, made to measure solutions, cost-effective and on-time service accelerating drug discovery and development – backed by the assurance of confidentiality.

With all this, DIL enhances and adds value to the client’s research program. DIL is a public listed company delivering reliable services to the pharmaceutical and biotechnology industries. Tucked away in a quiet and verdant niche in Thane, (32 km. away from Mumbai), and spread over 28,000 sq mts of land, is where it all happens.

Business area of the company:

Currently, DIL is engaged in the business of research support services through its subsidiary Research Support International Ltd. (RSIL), manufacture and marketing of enzymes and chemicals through its subsidiary Fermenta Biotech Ltd. (FBL), entertainment through its subsidiary White Stripes Entertainment Ltd. (WSEL) and manufacture and marketing of levitation technology and wheel chairs through its Joint Venture company, being set up in the Czech Republic.

Milestones:

  • 1951 – 1963: Toll manufacturing for the pharmaceutical and cosmetics industries.
  • 1963: The company established a JV with Philips Duphar for the manufacture and marketing of pharmaceutical products in India.
  • 1976: DIL was listed on the Bombay Stock Exchange.
  • 1980: Philips Duphar was taken over by Solvay Pharmaceuticals.
  • 1986: Fermenta Biotech Ltd. was founded as a subsidiary company to complement and segregate DIL’s capabilities in biotechnology.
  • 1987: Fundamental research was initiated as part of Solvay’s research efforts. A full-fledged laboratory was set up as per GLP requirements and accredited by the Department of Scientific & Industrial Research.
  • 1995: ‘Crocin’, which went on to become the most popular brand of paracetamol in India, was divested to SmithKline Beecham.
  • 2000: The company realigned its business to focus sharply and exclusively on custom synthesis and process R&D by de-merging its pharmaceutical formulation business in favour of Solvay.

 

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