BSE:500672

Stock Analysis Report

Executive Summary

Novartis India Limited primarily trades in drugs and pharmaceuticals.

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Novartis India's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.6%

500672

3.3%

IN Pharmaceuticals

3.2%

IN Market


1 Year Return

-14.6%

500672

-17.7%

IN Pharmaceuticals

5.6%

IN Market

Return vs Industry: 500672 exceeded the Indian Pharmaceuticals industry which returned -17.7% over the past year.

Return vs Market: 500672 underperformed the Indian Market which returned 5.6% over the past year.


Shareholder returns

500672IndustryMarket
7 Day-0.6%3.3%3.2%
30 Day-3.4%-3.8%6.0%
90 Day-7.3%-1.8%2.0%
1 Year-13.3%-14.6%-17.0%-17.7%7.8%5.6%
3 Year-5.7%-10.1%-25.6%-27.2%22.6%16.3%
5 Year-0.06%-7.1%-10.9%-13.6%43.1%29.6%

Price Volatility Vs. Market

How volatile is Novartis India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Novartis India undervalued compared to its fair value and its price relative to the market?

35.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 500672 (₹607.95) is trading above our estimate of fair value (₹95.02)

Significantly Undervalued: 500672 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500672 is poor value based on its PE Ratio (35.3x) compared to the Pharmaceuticals industry average (15.7x).

PE vs Market: 500672 is poor value based on its PE Ratio (35.3x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 500672's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500672 is overvalued based on its PB Ratio (2x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Novartis India forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500672's forecast earnings growth (18.2% per year) is above the savings rate (7.6%).

Earnings vs Market: 500672's earnings (18.2% per year) are forecast to grow faster than the Indian market (18.3% per year).

High Growth Earnings: 500672's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 500672's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 500672's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 500672's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Novartis India performed over the past 5 years?

-9.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 500672's earnings have declined by -9.5% per year over the past 5 years.

Accelerating Growth: 500672's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500672 had negative earnings growth (-47.7%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (14.4%).


Return on Equity

High ROE: 500672's Return on Equity (5.6%) is considered low.


Return on Assets

ROA vs Industry: 500672's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: 500672's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Novartis India's financial position?


Financial Position Analysis

Short Term Liabilities: 500672's short term assets (₹8.1B) exceeds its short term liabilities (₹1.9B)

Long Term Liabilities: 500672's short term assets (8.1B) exceeds its long term liabilities (382.4M)


Debt to Equity History and Analysis

Debt Level: 500672 is debt free.

Reducing Debt: 500672 has no debt compared to 5 years ago when its debt to equity ratio was 0.01%.

Debt Coverage: 500672 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 500672 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500672 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 500672's debt is covered by short term assets.


Next Steps

  • Explore more healthy companies in the Pharmaceuticals & Biotech industry.

Dividend

What is Novartis India's current dividend yield, its reliability and sustainability?

1.64%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%0.6%markettop25%2.4%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 500672's dividend (1.64%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 500672's dividend (1.64%) is low compared to the top 25% of dividend payers in the Indian market (2.43%).

Stable Dividend: 500672's dividends per share have been stable in the past 10 years.

Growing Dividend: 500672's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58%), 500672's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Novartis India's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Sanjay Murdeshwar (53yo)

0.3yrs

Tenure

0

Mr. Sanjay Murdeshwar serves as Vice Chairman and Managing Director at Novartis India Limited since June 15, 2019. Mr. Murdeshwar served as Managing Director of AstraZeneca Pharma India Limited since May 2 ...


Management Age and Tenure

1.0yrs

Average Tenure

Experienced Management: 500672's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

7.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: 500672's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Sanjay Murdeshwar (53yo)

    MD & Vice Chairman

    • Tenure: 0.3yrs
  • Trivikram Guda

    Company Secretary & Compliance Officer

    • Tenure: 2.7yrs
    • Compensation: ₹7.10m
  • Vas Narasimhan (43yo)

    Chief Executive Officer of Novartis

    • Tenure: 1.7yrs
  • Felix Doss

    Chief Financial Officer

    • Tenure: 0.3yrs

Board Members

  • Alex Krauer

    Honorary Chairman of Novartis AG

    • Tenure: 0yrs
  • Monaz Noble (51yo)

    Non-Executive Non-Independent Director

    • Tenure: 3.3yrs
    • Compensation: ₹16.20m
  • Jai Hiremath (71yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: ₹1.00m
  • Rajen Mehrotra (74yo)

    Independent Non-Executive Director

    • Tenure: 19.4yrs
    • Compensation: ₹1.00m
  • Christopher Snook (65yo)

    Non-Executive Chairman

    • Tenure: 11.2yrs
  • Sandra Martyres (66yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: ₹1.00m
  • Sanjay Murdeshwar (53yo)

    MD & Vice Chairman

    • Tenure: 0.3yrs

Company Information

Novartis India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Novartis India Limited
  • Ticker: 500672
  • Exchange: BSE
  • Founded: 1947
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹14.766b
  • Shares outstanding: 24.69m
  • Website: https://www.novartis.in

Number of Employees


Location

  • Novartis India Limited
  • Inspire BKC, G Block
  • Part of 601 and 701, 6 & 7 Floors
  • Mumbai
  • Maharashtra
  • 400051
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500672BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 1999

Biography

Novartis India Limited primarily trades in drugs and pharmaceuticals. The company offers a portfolio of prescription medicines in the areas of bone and pain, calcium portfolio, gynecology, neurosciences, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:37
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.