Marksans Pharma Ltd - Stock Valuation and Financial Performance

BSE: 524404 | NSE: MARKSANS | Pharmaceuticals & Drugs | Small Cap

Marksans Pharma Share Price

162.95 -1.10 -0.67%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Marksans Pharma

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Marksans Pharma stock performance -

mw4me loader
P/E Ratio (SA):
62.27
Market Cap:
7,384.3 Cr.
52-wk low:
70.2
52-wk high:
179.1

Is Marksans Pharma Ltd an attractive stock to invest in?

1. Is Marksans Pharma Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Marksans Pharma Ltd is a average quality company.

2. Is Marksans Pharma Ltd undervalued or overvalued?

The key valuation ratios of Marksans Pharma Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Marksans Pharma Ltd a good buy now?

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

10 Year X-Ray of Marksans Pharma:

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.
Marksans Pharma 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 27.9%21.1%16.7%1.5%2.6%8.7%8.2%18.6%13.3%9%-
Value Creation
Index
1.00.50.2-0.9-0.8-0.4-0.40.3-0.1-0.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 315406358216295424433600658655781
Sales YoY Gr.-28.8%-11.7%-39.7%36.5%44%2.2%38.3%9.8%-0.5%-
Adj EPS 1.41.51.70.10.210.92.42.21.82.6
YoY Gr.-8.9%13.6%-94%80%450%-6.1%160.2%-9.5%-16.4%-
BVPS (₹) 3.88.51010.210.511.512.414.716.924.526.2
Adj Net
Profit
5260.368.33.97.340.737.999.189.583.1119
Cash Flow from Ops. 54.211264.8-13.615.619.81081075651.7-
Debt/CF from Ops. 1.70.50.6-5.44.33.9000.10-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.5%17.3%14.8%-0.5%
Adj EPS 3.4%59%25.3%-16.4%
BVPS23%18.5%25.7%45.1%
Share Price 21.4% 44.5% 42.9% 111.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
38.523.317.50.91.797.817.912.98.810.3
Op. Profit
Mgn %
2526.127.86.39.914.916.519.117.315.716.5
Net Profit
Mgn %
16.514.919.11.82.59.68.816.513.612.715.2
Debt to
Equity
0.60.10.10.20.20.20000-
Working Cap
Days
219185206352278223227165187241231
Cash Conv.
Cycle
126102127260208160157105121144176

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 14.77%

Net Profit is growing at healthy rate in last 3 years 25.31%

Sales growth is good in last 4 quarters at 15.28%

Return on Equity has declined versus last 3 years average to 10.30%

Latest Financials - Marksans Pharma Ltd.

Standalone Consolidated
TTM EPS (₹) 2.6 7
TTM Sales (₹ Cr.) 781 2,103
BVPS (₹.) 26.2 43.2
Reserves (₹ Cr.) 1,144 1,913
P/BV 6.21 3.77
PE 62.27 23.27
From the Market
52 Week Low / High (₹) 70.20 / 179.10
All Time Low / High (₹) 0.70 / 179.10
Market Cap (₹ Cr.) 7,384
Equity (₹ Cr.) 45.3
Face Value (₹) 1
Industry PE 48

Management X-Ray of Marksans Pharma:

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 Marksans Pharma

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales315406358216295424433600658655
Operating Expenses 236300259202266361362486545563
Manufacturing Costs20232219192118231718
Material Costs170218178112169236245338378394
Employee Cost 21242640464649556056
Other Costs 25353331325750709094
Operating Profit 79106991429637111411492
Operating Profit Margin (%) 25.0%26.1%27.7%6.3%9.9%14.9%16.5%19.0%17.3%14.0%
Other Income 8131318780314260
Interest 151364877544
Depreciation 99151512912151817
Exceptional Items 0000000000
Profit Before Tax 63979212175653124135132
Tax 83020041215263129
Profit After Tax 5667711212443898104103
PAT Margin (%) 17.6%16.5%20.0%5.3%4.2%10.3%8.7%16.4%15.8%15.7%
Adjusted EPS (₹)1.41.61.80.30.31.10.92.42.52.3
Dividend Payout Ratio (%)7%7%7%18%16%5%11%10%10%22%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 1603584234194294715066006921,111
Share Capital 52535341414141414145
Reserves 1083053693783884304655596511,066
Minority Interest0000000000
Debt7844417366770050
Long Term Debt20000000000
Short Term Debt5844417366770050
Trade Payables414531213437576474112
Others Liabilities 9881393331404897218156
Total Liabilities 3765275345465606256107619891,379

Fixed Assets

Gross Block130162184196202225249277301319
Accumulated Depreciation637287102114122134148166175
Net Fixed Assets6790979488103115129136144
CWIP 0000000004
Investments 6868231234236236236236237266
Inventories5651442942707594104131
Trade Receivables112125133155169178162169247305
Cash Equivalents 3316833123106224440
Others Assets41262531243619274388
Total Assets 3765275345465606256107619891,379

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 5411265-1416201081075652
PBT 63979212175653124135132
Adjustment 1518913201219-9-811
Changes in Working Capital -1629-15-22-16-354612-39-60
Tax Paid -8-31-20-16-5-13-10-20-32-32
Cash Flow From Investing Activity -2-29-177-8-8-20-249-128-195
Capex -3-32-22-12-6-23-24-21-23-35
Net Investments 00-164-3-2000-120-149
Others 13970302915-10
Cash Flow From Financing Activity -1951-5221-101-82-1471210
Net Proceeds from Shares 013100000000
Net Proceeds from Borrowing 0000000000
Interest Paid -7-6-3-4-8-7-7-5-3-4
Dividend Paid -6-6-7-6-2-2-2-4-11-10
Others -7-68-4231010-72-485224
Net Cash Flow 33134-164-1-212102-167
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)45.7527.2718.912.792.939.77.7717.816.1111.41
ROCE (%)34.8933.4122.453.444.9211.9911.3923.4619.9114.27
Asset Turnover Ratio0.920.90.670.40.530.720.70.880.760.59
PAT to CFO Conversion(x)0.961.670.92-1.171.330.452.841.090.540.5
Working Capital Days
Receivable Days118107132244200149143100114145
Inventory Days62484862444861515462
Payable Days76717884595570656786

Marksans Pharma Ltd Stock News

Marksans Pharma Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Marksans Pharma on 12-Apr-2024 16:59 is ₹162.9.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 16:59 the market cap of Marksans Pharma stood at ₹7,384.3.
The latest P/E ratio of Marksans Pharma as of 12-Apr-2024 16:59 is 62.27.
The latest P/B ratio of Marksans Pharma as of 12-Apr-2024 16:59 is 6.21.
The 52-week high of Marksans Pharma is ₹179.1 and the 52-week low is ₹70.20.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Marksans Pharma is ₹781.1 ( Cr.) .

About Marksans Pharma Ltd

Marksans Pharma, incorporated in 1992, was a wholly-owned subsidiary of Glenmark Pharmaceuticals. It became a separate entity in March 2003 and the name was changed to Marksans Pharma in 2005.

Currently the company has presence in Active Pharmaceuticals Ingredients (APIs), formulations and biopharmaceuticals. It is also actively engaged in research and development and offers contract research and manufacturing services (CRAMS) to global pharmaceutical companies.

The company, engaged in production of prescription drugs, caters in areas like oncology, gastroenterology, antidiabetic, cardiovascular, pain management, gynaecology and others.

The company's plants have been built as per USFDA guidelines and have received approval from various health authorities namely TGA (Australia), MHRA (United Kingdom) ANVISA (Brazil) apart from WHO GMP certificate.

Marksans Pharma  acquired Relonchem, a leading UK-based generic pharmaceutical company. This acquisition gave company an immediate sales and marketing front-end access to the highly regulated and lucrative generic medicines market in UK and Europe.

Marksans Pharma exports its products to markets in Europe, Latin America, Africa and Oceania.

In 2010 Company entered into a Business Transfer Agreement with Kores (India) Limited

Business area

Research and Development- The company’s R&D centre is situated in Goa and is engaged in new drug discovery chemistry, pharmacokinetics, pharmacology/ molecular biology, toxicology, and related skills and support areas.

Formulation- This division is engaged in manufacturing of tablets, non-sterile liquids, ointments and powder products. The company owns one of the biggest manufacturing facility for soft gelatin in Asia. The company’s manufacturing plants are located at Goa and UK.

APIs- Marksans' two APIs manufacturing units are located in Pune. The present manufacturing capacity of 1140 TPA that comprises of 600 TPA Quinolones, 360 TPA Ranitidine, and 180 others.

CRAMS- The company has alliances with the top 8 MNC generic companies for contract manufacturing of 30 generic products for the European markets. It has entered into licensing agreements with numerous companies for development and supply of products for 7-10 years.

Milestones

2009 - Marksans Pharma establlished itself as a global player
2008 - Acquired Bells, Sons & Co. (Druggists) Ltd.
          Acquired Relonchem Limited
2005 - Acquired Nova Pharmaceuticals Australasia Pty Ltd.
2003 - Spun-off into a separate entity - Glenmark Laboratories Ltd.
          Changed its name to "Marksans Pharma Ltd"
2001  - Marksans was incorporated as a wholly owned subsidiary of Glenmark Pharmaceuticals Ltd.

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