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Marksans Pharma Ltd Stock Analysis

Small Cap
Evaluated by 2123 users | BSE: 524404 | NSE: MARKSANS |
Pharmaceuticals & Drugs
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...

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.
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
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed -64.07%1217.92%77.5%27.85%21.14%16.68%1.48%2.56%8.67%8.15%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 155155192315406358216295424433
Y-o-Y Gr. Rt.--0.1%24.4%63.8%28.8%-11.7%-39.7%36.5%44%2.2%
Adjusted EPS (Rs.) -5.96-3.970.951.351.471.670.10.180.990.92
Y-o-Y Gr. Rt.-NANA42.1%8.9%13.6%-94%80%450%-7.1%
Book Value per Share (Rs.) -1.51-5.512.53.88.4510.0210.2310.4811.512.35
Adjusted Net Profit -219-14636.65260.368.33.97.340.737.8
Net Op. Cash Flow (Rs. Cr.) -67.9-60.88.654.211264.8-13.615.619.8118
Debt to Cash Flow from Ops -1.65-1.6510.571.650.450.63-5.374.283.920
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.
Marksans Pharma Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 12.1%1.3%26.2%2.2%
Adjusted EPS NA-9%109.5%-7.1%
Book Value per Share 07.96.57.4
Share Price 47.9% 3.6% 16.8% 160.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -328.18126.99-93.6338.5223.2817.50.931.729.047.75
Operating Profit Margin (%) -105.1-43.9421.2424.9926.1427.756.349.8914.9416.49
Net Profit Margin (%) -141.61-94.5619.0116.5114.8719.081.822.479.598.73
Debt to Equity -2.65-0.530.820.560.140.10.170.160.170
Working Capital Days 351299279219185206352277221224
Cash Conversion Cycle 227183164126102127260208166160
Entity Percentage Holding
Promoters 48.25%
Institutions 5.35%
Non-Institutions 46.40%
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 Marksans Pharma Ltd and arrived at the following conclusion:

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

The 5-year analysis of Marksans Pharma Ltd's performance infers:

Marksans Pharma Ltd earnings have declined by -9%, whereas share price has appreciated 3.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

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

Marksans Pharma Ltd share price has appreciated 35.3% annually over the past ten years.

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

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.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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