SMS Pharmaceuticals Ltd Stock Analysis

BSE: 532815 | NSE: SMSPHARMA | Pharmaceuticals & Drugs | Small Cap

BSE Share Price 08-Dec-2022 18:01
83.35 -0.70 (-0.83%)

DeciZen - Make an Informed Decision on SMS Pharmaceuticals

Overall Rating

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

SMS Pharmaceuticals Price Chart

P/E Ratio (SA) :
67.47
Market Cap :
711.5 Cr.
52-wk low :
71
52-wk high :
145.3
Bole Toh?

1. Is SMS Pharmaceuticals Ltd a good quality company?

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

2. Is SMS Pharmaceuticals Ltd undervalued or overvalued?

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

3. Is SMS Pharmaceuticals Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of SMS Pharmaceuticals 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 SMS Pharmaceuticals:

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.
SMS Pharmaceuticals 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 % -7.2%7.8%11.7%11.6%10.2%11.8%10.6%8%11.4%11.1%-
Value Creation Index -1.5-0.5-0.2-0.2-0.3-0.2-0.3-0.4-0.2-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 248525587612445465465412563520406
YoY Gr. Rt. %-111.3%11.8%4.3%-27.2%4.4%0%-11.4%36.7%-7.7%-
Adj EPS -4.62.44.14.94.24.74.83.77.27.81.3
YoY Gr. Rt. %-NA68.7%19%-14.6%13.2%2.1%-22.8%92.5%9.2%-
BVPS (₹) 24.426.230.134.83135.640.243.450.658.357
Adj Net Profit -46.520.634.741.335.339.940.831.560.666.211
Cash Flow from Ops. -32.765.158.761.273.531.849.839.790.540.2-
Debt/CF from Ops. -4.62.62.83.324.62.93.82.86.5-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.6%3.1%3.8%-7.7%
Adj EPS NA13.4%17.5%9.2%
BVPS 10.213.513.315.3
Share Price 15.7% -4.7% 28.5% -34.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % -208.814.61512.714.212.78.915.214.42.2
Op. Profit Mgn % -14.11114.714.616.920.119.419.421.522.18.9
Net Profit Mgn % -18.73.95.96.87.98.68.87.610.812.72.6
Debt to Equity 0.60.80.70.70.60.50.40.40.60.50.3
Working Cap Days 260126128131160128152198167215219
Cash Conv. Cycle 170574643444367918212387

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 17.50%

Debt to equity has declined versus last 3 years average to 0.53

Return on Equity has declined versus last 3 years average to 2.20%

Sales growth has been subdued in last 3 years 3.79%

Sales growth is not so good in last 4 quarters at -38.06%

Latest Financials - SMS Pharmaceuticals Ltd.

Standalone Consolidated
TTM EPS (₹) 1.3 0
TTM Sales (₹ Cr.) 406 406
BVPS (₹.) 57 53.5
Reserves (₹ Cr.) 474 445
P/BV 1.48 1.57
PE 67.47 0.00
From the Market
52 Week Low / High (₹) 71.00 / 145.25
All Time Low / High (₹) 7.21 / 199.15
Market Cap (₹ Cr.) 712
Equity (₹ Cr.) 8.5
Face Value (₹) 1
Industry PE 37.3

Management X-Ray of SMS Pharmaceuticals :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *8.838.8310.2410.2410.2410.2410.2410.2410.7310.73
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of SMS Pharmaceuticals

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

News

SMS Pharmaceuticals Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of SMS Pharmaceuticals on 08-Dec-2022 18:01 is : 83.35.
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 08-Dec-2022 18:01 the market cap of SMS Pharmaceuticals stood at ₹ 711.5.
The latest PE ratio of SMS Pharmaceuticals as of 08-Dec-2022 18:01 is 67.47.
The latest PB ratio of SMS Pharmaceuticals as of 08-Dec-2022 18:01 is 1.48
The 52-week high of SMS Pharmaceuticals is ₹ 145.2 and the 52-week low is ₹ 71.00.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of SMS Pharmaceuticals is ₹ 406.0 ( Cr.) .

About SMS Pharmaceuticals Ltd

SMS Pharmaceuticals Ltd. is a global player in API manufacturing having strong research and manufacturing team supported by state of art facilities. What started off as a single facility single product manufacturing company in 1990 grew to be a multi location group having product list spreading across an array of therapeutic segments. SMS is currently a listed company having ever appreciating international and domestic customer base. Having six multi product facilities in operation, one under development, and two research centers, SMS has truly graduated in to big league with more than 600 employees working for it.

SMS Pharmaceuticals is an integrated pharma company with business presence in over 70 countries.

SMS is focused on API manufacturing and is the single largest producer of anti ulcer products and is renowned among the clientele for the excellent quality of product and customer service.

The company is diversifying into CRAMS by creating research and manufacturing facilities bettering the requirements of the regulatory markets to appeal to international clientele.

SMS is venturing into highly specialized oncology segment by building first of its kind dedicated oncology API and formulations manufacturing facility in Andhra Pradesh to target the niche market segments.

Merger of Sreenivasa Pharma Private Ltd with SMS Pharmaceuticals Ltd has given a new boost to the company, SMS Pharma has also completed the takeover of Plant Organics.

Recently SMS has established new state of art corporate research center with ultramodern facilities encompassing the whole gamut of research activity viz. from product conception to development, scaling up and DMF preparation. This is supported by well equipped analytical wing and a fully functional pilot plant. This new facility will enhance our existing offerings from a contract research and custom synthesis point of view.

R&D at SMS drives the company’s competitive edge, reflected in the introduction of pioneering products and processes with a superior price-value proposition. Strong R&D has been at the core of SMS growth since its inception. SMS started R&D activities with 4 doctorate scientists supported by 20 senior chemists in a 10000 Sq.ft area.

SMS recently expanded its R&D facilities by creating a state of art corporate research center with infrastructure and expertise to carry out all the activities from product conception to the development, scale up, stability studies culminating in preparation of the DMF.

Product range of the company includes:

  • API and Intermediates
  • Cytotoxic Solid Dose, Sterile Cytotoxic Liquid, and Lyophilized Products
  • Bio Products
  • Inorganic Products
  • Nutraceuticals

Different divisions of the company:

  • Manufacturing :SMS Pharmaceuticals Ltd. is one of the leading pharmaceutical manufacturing companies in India with world-class facilities with a wide range of process equipment fully compliant with WHO GMP standards.SMS has over the years developed tremendous manufacturing facilities to suit its style of operations and to meet the requirements of USFDA and other regulatory markets. A total of 6 facilities are being presently operated and one is under construction.
  • Research and development :R&D at SMS drives the company’s competitive edge, reflected in the introduction of pioneering products and processes with a superior price-value proposition. Strong R&D has been at the core of SMS growth since its inception. SMS started R&D activities with 4 doctorate scientists supported by 20 senior chemists in a 10000 Sq.ft area.SMS recently expanded its R&D facilities by creating a state of art corporate research center with infrastructure and expertise to carry out all the activities from product conception to the development, scale up, stability studies culminating in preparation of the DMF.SMS research team now comprises of about 100 scientists with expertise in process research, analytical research and scale up. A dedicated project management team handles costing, administration, purchase, and project monitoring. R&D capabilities of the company span across reaction technologies, organic compound categories, and novel catalytic systems. This center is capable of delivering top notch contract research modules to international clientele.

Achievements/ recognition :

  • SMS was given the export house status in the year 1997-98.
  • Awarded the Prestigious ' Pandit Jawaharlal Nehru Silver Rolling Trophy' for the best productivity effort in the state.
  • Became the single largest producer of Ranitidine Hydrochloride in the World.
  • One of the leading export houses exporting to more than 70 countries worldwide.
  • WHO-GMP approved API manufacturing facilities in India (2 more to be operational soon).
  • Achieved ISO 9001 certification for Units at Khazipally and Bollaram.
  • Awarded the prestigious US GCNC Green chemistry award.
  • Successfull FDA audits in 2004 and 2008 at our Bachupally unit.
  • Proven expertise in low cost process routes, commercialization & manufacturing.
  • Over 21 process patents and 72 regulatory filings.
  • Successful execution of contract research and manufacturing assignments.
  • CRISIL renews SMS Pharma's SME 1 rating for FY 09-10.
  • Recieved 'Best Industrial Productivity Effort in the State' silver rolling trophy.

Future plan:

SMS is building an ultra modern API manufacturing facility near Vizag on the eastern coast of India to cater to in house production needs and also for the emerging contract manufacturing business.

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