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Amar Remedies Ltd. Stock Analysis

Small Cap
Evaluated by 246 users | BSE: 532664 | NSE: AMAR |
Household & Personal Products
Amar Remedies, incorporated 1984, is engaged in the business of manufacturing a range of FMCG products. The company was incorporated as Swami Aushadalaya to foray into ayurvedic medicinal research and development. Later in 1995 the name of the company was changed to Amar Remedies.The company...

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.
Value Creation
 Jun'03Jun'04Jun'05Jun'06Jun'07Jun'08Jun'09Jun'10Jun'11Jun'12
Return on Capital Employed 013.1%22.15%28.3%14.45%15.7%16.66%17.19%14.82%14.12%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 082.2107167202298369472578674
Y-o-Y Gr. Rt.-NA29.9%56.5%20.9%47.6%23.8%28%22.4%16.7%
Adjusted EPS (Rs.) 03.256.198.016.518.3210.212.3614.519.23
Y-o-Y Gr. Rt.-NA90.5%29.4%-18.7%27.8%22.6%21.2%17.3%32.6%
Book Value per Share (Rs.) 016.2322.4231.8638.5747.0856.2967.6481.2198.68
Adjusted Net Profit 03.66.92117.121.826.732.337.950.3
Net Op. Cash Flow (Rs. Cr.) 00-1.4-9.115.42.32.9-12.2-0.1-21.1
Debt to Cash Flow from Ops 00-10.91-3.23.4724.3230.03-10.22-1,777.18-17.96
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.
Amar Remedies Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales NA27.3%22.2%16.7%
Adjusted EPS NA24.2%23.5%32.6%
Book Value per Share 020.720.621.5
Share Price -27.5% - - -
Key Financial Parameter
Performance Ratio Colour Code Guide
 Jun'03Jun'04Jun'05Jun'06Jun'07Jun'08Jun'09Jun'10Jun'11Jun'12
Return on Equity (%) 018.0229.435.9417.3618.5219.0419.4219.1121.09
Operating Profit Margin (%) 06.69.3616.5813.0511.8712.8714.4614.2417.07
Net Profit Margin (%) 04.416.4712.538.447.37.236.846.567.46
Debt to Equity 00.720.60.350.530.460.60.71.181.47
Working Capital Days 00117125154131147161182228
Cash Conversion Cycle 00110116138119131140153182
Entity Percentage Holding
Promoters 24.60%
Institutions 4.39%
Non-Institutions 71.01%
Pledged *78.0088.4988.7491.1995.7499.5998.9898.9899.6799.66
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Amar Remedies's performance infers:

Amar Remedies earnings have grown by 24.2%, whereas share price has appreciated 0% 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 Amar Remedies share prices over the last 10 years. Here is what we found out:

Amar Remedies share price has appreciated -24.8% annually over the past ten years.

Amar Remedies, incorporated 1984, is engaged in the business of manufacturing a range of FMCG products. The company was incorporated as Swami Aushadalaya to foray into ayurvedic medicinal research and development. Later in 1995 the name of the company was changed to Amar Remedies.

The company established its first manufacturing facility in Surat, Gujarat. At that time when major toothpaste brands used gelatine as an ingredient, making their toothpastes non-vegetarian. Amar became first to

Amar Remedies, incorporated 1984, is engaged in the business of manufacturing a range of FMCG products. The company was incorporated as Swami Aushadalaya to foray into ayurvedic medicinal research and development. Later in 1995 the name of the company was changed to Amar Remedies.

The company established its first manufacturing facility in Surat, Gujarat. At that time when major toothpaste brands used gelatine as an ingredient, making their toothpastes non-vegetarian. Amar became first to launch a breakthrough product, which was a gelatine-free formula. In 1991, the company launched a ‘Vegetarian’ toothpaste in Gujarat.

Much later in 1998 the company widened its product portfolio and introduced Amar Strong, Amar Regular and Amar White Toothpaste.

In 2001, the company commenced a new manufacturing facility at Daman. This led to increase in capacity of manufacturing facility and developing more varieties of toothpaste.

Today ARL manufactures 25 ayurvedic and herbal products for local and export markets. Amar's products are exported to over 20 countries like USA, Canada, Italy, France, UK, Nigeria, Ghana, Sudan, Tanzania, Dubai and Panama, among others.

Headquartered in Mumbai, the company’s manufacturing facilities are located at Daman, Dehradun and Surat.

The company has a product portfolio that includes toothpastes, toothbrushes, petroleum jelly, talc, soaps, shampoo, lotions and creams. The company markets its products under brand name ‘Amar’.

The company has received ISO 9001:2000 certification for its quality management. The company has also received International Gold Star for Quality Award at the International Star Quality Convention held at Paris in 2007. The company is recognised as ‘One Star Export House’ by Government of India and ministry of commerce and industry.

Future Strategy

Amar Remedies plans to invest Rs 25 crore to open 9 exclusive outlets of its newly-launched brand ‘The Nature’s Co’ in the next 18 months. The company is intending to open these outlets in metros as well as Tier I and II cities including Mumbai, Bangalore, Hyderabad, Pune, Surat and Chandigarh.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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