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Nectar Lifesciences Ltd Stock Analysis

Small Cap
Evaluated by 1537 users | BSE: 532649 | NSE: NECLIFE |
Pharmaceuticals & Drugs
Nectar Lifesciences (NecLife) incorporated in 1995, is a $200 million pharmaceutical organization. The company offers a range of Cephalosporin active pharmaceutical ingredients (APIs) and finished dosage forms. The company was previously known as Surya Medicare and is is promoted by Sanjiv...

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
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 11.48%9.25%9.32%8.98%8.4%7.41%7.18%6.81%7.52%6.02%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,0621,3131,6261,6381,6441,6761,6431,8762,7852,363
Y-o-Y Gr. Rt.-23.6%23.9%0.7%0.3%2%-2%14.1%48.5%-15.2%
Adjusted EPS (Rs.) 4.73.33.822.772.952.432.422.332.121.33
Y-o-Y Gr. Rt.--29.8%15.8%-27.5%6.5%-17.6%-0.4%-3.7%-9%-37.3%
Book Value per Share (Rs.) 32.1634.9838.6941.3441.1142.5544.8947.2149.2650.59
Adjusted Net Profit 10574.185.762.166.254.454.352.247.529.9
Net Op. Cash Flow (Rs. Cr.) 4416536125514416919965.1239286
Debt to Cash Flow from Ops 18.16.322.443.376.45.74.4214.663.782.73
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.
Nectar Lifesciences Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.3%7.5%12.9%-15.2%
Adjusted EPS -13.1%-14.7%-18.1%-37.3%
Book Value per Share 5.24.24.12.7
Share Price 0.5% -12.2% -15.7% 49.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 15.79.8410.376.927.025.695.545.054.392.67
Operating Profit Margin (%) 21.5619.0217.8417.5716.2414.2613.6412.599.489.23
Net Profit Margin (%) 9.925.645.273.794.033.253.32.781.711.26
Debt to Equity 1.11.331.010.9311.010.870.90.820.69
Working Capital Days 276276251270285298324292206240
Cash Conversion Cycle 172172133125134142153133104115
Entity Percentage Holding
Promoters 55.80%
Institutions 2.62%
Non-Institutions 41.58%
Pledged *55.8555.8555.8555.850.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Nectar Lifesciences Ltd's performance infers:

Nectar Lifesciences Ltd earnings have declined by -14.7%, whereas share price has depreciated -12.2% 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 Nectar Lifesciences Ltd share prices over the last 10 years. Here is what we found out:

Nectar Lifesciences Ltd share price has depreciated -2.7% annually over the past ten years.

Nectar Lifesciences (NecLife) incorporated in 1995, is a $200 million pharmaceutical organization. The company offers a range of Cephalosporin active pharmaceutical ingredients (APIs) and finished dosage forms. The company was previously known as Surya Medicare and is is promoted by Sanjiv Goyal.

NecLife is among few Indian manufacturers to develop, manufacture and market Oral and Sterile Cephalosporins and Semi Synthetic Penicillins. The company is amongst the few life saving API

Nectar Lifesciences (NecLife) incorporated in 1995, is a $200 million pharmaceutical organization. The company offers a range of Cephalosporin active pharmaceutical ingredients (APIs) and finished dosage forms. The company was previously known as Surya Medicare and is is promoted by Sanjiv Goyal.

NecLife is among few Indian manufacturers to develop, manufacture and market Oral and Sterile Cephalosporins and Semi Synthetic Penicillins. The company is amongst the few life saving API manufacturing companies that produces sterile APIs, through both Lyophilization and Crystallization processes.

Headquartered in Chandigarh, the company's manufacturing facilities are located at Derabassi (API and Menthol), Baddi (FDF and EHGC) and Jammu (Menthol). The company's marketing offices are situated at Delhi, Mumbai and Indore.

NecLife has received two star ‘Export House’ status from the Government of India. The company has received ISO 9001:2000 certification for quality management. The company’s manufacturing facilities for APIs were developed as per USFDA /EDQM guidelines. These facilities have also been certified by WHO GMP. The company also has a well equipped R&D unit that focuses on development of new molecules.

NecLife’s products have export presence in over 45 countries spread across 5 continents.

Products

  • NecLife manufactures and markets APIs namely Cephalothin Sodium, Cefazolin Sodium, Flucloxacillin Sodium, Oxacillin Sodium, Sulbactum Sodium, Azithromycin Dihydrate, Ceftazidime, Meropenem, Cefdinir are many others.
  • Among under finished dosage, the company manufactures products in different forms such as tablets, capsules, dry syrup and injectables (vials). It manufactures products such as Cefadroxil, Cefprozil, Cephalexin, Cefaclor and many more.
  • NecLife undertakes complete range of contract research and manufacturing services which includes formulation development, lyophilization cycle development, labelling and packaging, QC testing, stability studies and regulatory support.
  • NecLife manufactures two-piece double lock gelatin capsules under GMP standards and ISO 9002 guidelines. These capsules are BSE (Bovine spongiform encephalopathy)-free and contain no sulfites has shelf life of 5 years.
  • NecLife has also ventured into Phyto-chemicals with launch of “NECTAR MENTHOL” offering Menthol and derived products.

Future Plans

Besides India, Nectar Lifesciences plans to explore the untapped markets in regions namely Russia and CIS, China, Asia and USA.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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