Novartis India Ltd - Stock Valuation and Financial Performance

BSE: 500672 | NSE: NOVARTIND | Trading | Small Cap

Novartis Share Price

1,165.20 4.00 0.34%
as on 12-Jul'24 16:01

DeciZen - make an informed investing decision on Novartis

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Novartis India stock performance -

mw4me loader
P/E Ratio (SA):
33.77
Market Cap:
2,877 Cr.
52-wk low:
600
52-wk high:
1,224

Is Novartis India Ltd an attractive stock to invest in?

1. Is Novartis India Ltd a good quality company?

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

2. Is Novartis India Ltd undervalued or overvalued?

The key valuation ratios of Novartis India Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Novartis India Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Novartis India 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 Novartis:

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.
Novartis India 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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 7.6%18.1%5.4%8.3%4.5%2.2%3.2%4.9%14.1%11.1%-
Value Creation
Index
-0.50.3-0.6-0.4-0.7-0.9-0.8-0.70.0-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 873690656564491438381400379335335
Sales YoY Gr.--21%-4.9%-14.1%-13%-10.7%-13%4.9%-5.3%-11.5%-
Adj EPS 23.262.120.226.213.34.67.212.641.333.734.5
YoY Gr.-167.6%-67.5%29.8%-49.4%-65%55.2%74.6%228.9%-18.6%-
BVPS (₹) 313.5375.6329.5299.8309.3293.4289.4281.2314.3301.8301.7
Adj Net
Profit
74.219956.864.732.711.517.83110283.185
Cash Flow from Ops. -59.656.6-40.8161-194-23.1-69.238.744.8113-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -10.1%-7.4%-4.2%-11.5%
Adj EPS 4.2%20.5%67.2%-18.6%
BVPS-0.4%-0.5%1.4%-4%
Share Price 6.5% 12.5% 3.7% 35.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
7.618.15.47.84.41.62.54.413.910.911.4
Op. Profit
Mgn %
-0.94.63.7-1.43.23.16.86.717.519.619.5
Net Profit
Mgn %
8.528.88.711.56.72.64.77.82724.825.4
Debt to
Equity
00000000000
Working Cap
Days
6673984296888446758911,1641,2991,360364
Cash Conv.
Cycle
293026-7-20-5481-4281

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 11.40%

Net Profit is growing at healthy rate in last 3 years 67.23%

Sales growth has been subdued in last 3 years -4.22%

Sales growth is not so good in last 4 quarters at -8.86%

Latest Financials - Novartis India Ltd.

Standalone Consolidated
TTM EPS (₹) 34.5 -
TTM Sales (₹ Cr.) 335 -
BVPS (₹.) 301.7 -
Reserves (₹ Cr.) 732 -
P/BV 3.86 -
PE 33.77 -
From the Market
52 Week Low / High (₹) 599.95 / 1224.00
All Time Low / High (₹) 65.00 / 1436.35
Market Cap (₹ Cr.) 2,877
Equity (₹ Cr.) 12.4
Face Value (₹) 5
Industry PE 75.1

Management X-Ray of Novartis:

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 Novartis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales873690656564491438381400379335
Operating Expenses 881659632572479427356373314270
Manufacturing Costs10367514544413735168
Material Costs349286306246199182147178202200
Employee Cost 2001571391451171141091023623
Other Costs 2291491361371199063586039
Operating Profit -83125-8121226276565
Operating Profit Margin (%) -0.9%4.5%3.7%-1.5%2.5%2.7%6.7%6.7%17.2%19.5%
Other Income 11224572174783634345862
Interest 0016268521
Depreciation 4343313121063
Exceptional Items -6000000-5000
Profit Before Tax 9327292158862940-4115123
Tax 1473357934191901238
Profit After Tax 791985778521021-410385
PAT Margin (%) 9.1%28.7%8.7%13.9%10.6%2.3%5.5%-0.9%27.3%25.4%
Adjusted EPS (₹)24.862.020.331.821.04.18.5-1.541.934.5
Dividend Payout Ratio (%)40%16%49%32%48%245%118%-663%113%72%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 1,0021,201927740763724714694776745
Share Capital 16161412121212121212
Reserves 9861,185913727751712702682763732
Minority Interest0000000000
Debt0000000000
Long Term Debt0000000000
Short Term Debt0000000000
Trade Payables957073106917355726062
Others Liabilities 9641541,0701,2671,1634401,4301,2441,2161,054
Total Liabilities 2,0601,4252,0702,1132,0181,2372,1992,0102,0521,861

Fixed Assets

Gross Block26101112248575413928
Accumulated Depreciation183579911172021
Net Fixed Assets966515766424197
CWIP 0000000000
Investments 0000000000
Inventories100728857615948575545
Trade Receivables83504144463839453641
Cash Equivalents 8391,126816775612582499518556596
Others Assets1,0311691,1211,2331,2854831,5501,3671,3861,172
Total Assets 2,0601,4252,0702,1132,0181,2372,1992,0102,0521,861

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity -6057-41161-194-23-693945113
PBT 10011192158862940-4115123
Adjustment -85-67-56-56-73-12-5-6-49-57
Changes in Working Capital -3292-32117-162-2-6967-249
Tax Paid -36-79-44-58-46-38-35-19238
Cash Flow From Investing Activity 719-63042469274569587-15333
Capex -5-201716-15-143
Net Investments 1300-2214187072-177-5
Others 711-62842454443921162035
Cash Flow From Financing Activity -38-39-332-268-30-41-37-36-30-121
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid 00-10000000
Dividend Paid -32-32-32-28-25-25-25-25-25-117
Others -5-7-299-240-5-17-12-11-6-4
Net Cash Flow 622-61251-3850-9-1190-13926
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)8.0618.015.389.46.891.362.91-0.5314.0711.21
ROCE (%)9.5224.778.7519.7211.74.736.670.1415.9616.35
Asset Turnover Ratio0.430.40.380.330.290.330.260.230.20.19
PAT to CFO Conversion(x)-0.760.29-0.722.06-3.73-2.3-3.29N/A0.441.33
Working Capital Days
Receivable Days33352523282931313639
Inventory Days42464438364143394950
Payable Days10610585133181164159131119111

Novartis India Ltd Stock News

Novartis India Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Novartis on 12-Jul-2024 16:01 is ₹1,165.2.
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-Jul-2024 16:01 the market cap of Novartis stood at ₹2,877.
The latest P/E ratio of Novartis as of 12-Jul-2024 16:01 is 33.77.
The latest P/B ratio of Novartis as of 12-Jul-2024 16:01 is 3.86.
The 52-week high of Novartis is ₹1,224 and the 52-week low is ₹600.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Novartis is ₹335.1 ( Cr.) .

About Novartis India Ltd

Novartis was created in 1996 through a merger of Ciba-Geigy and Sandoz. Novartis and its predecessor companies trace roots back more than 250 years, with a rich history of developing innovative products. From beginnings in the production of synthetic fabric dyes, the companies that eventually became Novartis branched out into producing chemicals and ultimately pharmaceuticals.

The history of Novartis traces the converging destinies of three companies: Geigy, a chemicals and dyes trading company founded in Basel, Switzerland in the middle of the 18th century; Ciba, which began producing dyes in 1859; and Sandoz, a chemical company founded in Basel in 1886.

These companies shared a common trait which lives on at Novartis: a passion for developing and marketing new products that contribute to human progress through advances in science and health. Building on this heritage, today Novartis focuses its innovation prowess on addressing the unmet needs of patients worldwide.

Since 1947, Novartis has had a significant footprint in India - committed to drug development, manufacturing, commercial and social business services. It has three legal entities namely, Novartis Healthcare Private Limited, Novartis India Limited and Sandoz Private Limited employing thousands of people. It has a rich portfolio of both innovative and established medicines addressing various therapeutic needs: cardiovascular, eye care, immunology and dermatology, metabolics, neuroscience, oncology, respiratory and organ transplant, to meet the medical needs of patients in India.

Its social business -- Arogya Parivar -- is expanding access to community education, improved infrastructure and affordable healthcare products for underserved populations in rural India.

The company’s purpose is to reimagine medicine to improve and extend people’s lives. It uses innovative science and technology to address some of society’s most challenging healthcare issues. It discover and develops breakthrough treatments and find new ways to deliver them to as many people as possible. It also aims to reward those who invest their money, time and ideas in the company.

Business area of the company

As a science-based and patient-oriented healthcare company, it strives to be a global leader in growing areas of healthcare. Following a corporate transformation Novartis globally is focused on three divisions with global scale and innovation power - pharmaceuticals, eye care and generic medicines. This has strengthened the future growth prospects of the company.

In India, the Pharmaceutical business of Novartis India Limited is focused on Bone & Pain, Calcium portfolio, Gynecology and Neurosciences and the Generics business is focused on Gynecology, Anti-TB and Anti-infectives.

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