BSE:539997

Stock Analysis Report

Executive Summary

Kwality Pharmaceuticals Limited manufactures and exports finished pharmaceutical formulations in a dosage form worldwide.

Snowflake

Fundamentals

Outstanding track record and undervalued.


Similar Companies

Share Price & News

How has Kwality Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

539997

3.9%

IN Pharmaceuticals

3.9%

IN Market


1 Year Return

-14.1%

539997

-17.5%

IN Pharmaceuticals

6.0%

IN Market

Return vs Industry: 539997 exceeded the Indian Pharmaceuticals industry which returned -17.5% over the past year.

Return vs Market: 539997 underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

539997IndustryMarket
7 Day0%3.9%3.9%
30 Day0%-2.4%7.8%
90 Day-17.1%-1.7%2.5%
1 Year-14.1%-14.1%-16.8%-17.5%8.2%6.0%
3 Year45.2%44.0%-25.5%-27.0%23.0%16.7%
5 Yearn/a-10.6%-13.3%43.5%30.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Kwality Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 539997 (₹37.3) is trading below our estimate of fair value (₹85.99)

Significantly Below Fair Value: 539997 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 539997 is good value based on its PE Ratio (5.1x) compared to the Pharmaceuticals industry average (15.7x).

PE vs Market: 539997 is good value based on its PE Ratio (5.1x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 539997's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 539997 is good value based on its PB Ratio (1x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

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

1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539997's forecast earnings growth (1.5% per year) is below the savings rate (7.6%).

Earnings vs Market: 539997's earnings (1.5% per year) are forecast to grow slower than the Indian market (18.2% per year).

High Growth Earnings: 539997's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 539997's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 539997's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 539997's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Kwality Pharmaceuticals performed over the past 5 years?

36.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 539997's earnings have grown significantly by 36.3% per year over the past 5 years.

Accelerating Growth: 539997's earnings growth over the past year (66.1%) exceeds its 5-year average (36.3% per year).

Earnings vs Industry: 539997 earnings growth over the past year (66.1%) exceeded the Pharmaceuticals industry 14.4%.


Return on Equity

High ROE: 539997's Return on Equity (20.8%) is considered high.


Return on Assets

ROA vs Industry: 539997 has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: 539997 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Kwality Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: 539997's short term assets (₹753.5M) exceeds its short term liabilities (₹608.3M)

Long Term Liabilities: 539997's short term assets (753.5M) exceeds its long term liabilities (82.3M)


Debt to Equity History and Analysis

Debt Level: 539997's debt to equity ratio (79.1%) is considered high

Reducing Debt: 539997's debt to equity ratio has increased from 32.2% to 79.1% over the past 5 years.

Debt Coverage: 539997's debt is well covered by operating cash flow (47.2%).

Interest Coverage: 539997's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

Inventory Level: 539997 has a high level of physical assets or inventory.

Debt Coverage by Assets: 539997's debt is covered by short term assets (assets are 2.622200x debt).


Next Steps

Dividend

What is Kwality Pharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.4%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 539997's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 539997's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 539997's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 539997's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 539997 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 539997's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Ramesh Arora (64yo)

3.8yrs

Tenure

0

Mr. Ramesh Arora has been the Managing Director and Executive Director of Kwality Pharmaceuticals Limited since January 16, 2016 and May 4, 1983 respectively. Mr. Arora has more than 3 decades of experienc ...


CEO Compensation Analysis

Compensation vs. Market: Ramesh's total compensation ($USD0.00) is too low to compare against companies of similar size in the Indian market ($USD29.55K).

Compensation vs Earnings: Ramesh's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

48yo

Average Age

Experienced Management: 539997's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

48yo

Average Age

Experienced Board: 539997's board of directors are considered experienced (4 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

  • Ramesh Arora (64yo)

    MD & Director

    • Tenure: 3.8yrs
  • Ajay Arora (51yo)

    Whole Time Director

    • Tenure: 0yrs
  • Anju Arora (57yo)

    Whole Time Director

    • Tenure: 9yrs
  • Geeta Arora (49yo)

    Whole Time Director

    • Tenure: 9yrs
  • Aditya Arora (25yo)

    CFO & Whole Time Director

    • Tenure: 4yrs
  • Karunakar Tiwari (48yo)

    Chief Pharmacist

    • Tenure: 0yrs
  • Lakhwinder Singh (34yo)

    Chief Designing Officer

    • Tenure: 0yrs
  • Neeraj Lakhanpal (34yo)

    Chief Export Sales Officer

    • Tenure: 0yrs
  • Shankar Dayal (34yo)

    Chief Domestic Sales Officer

    • Tenure: 0yrs
  • Gurpreet Kaur

    Company Secretary & Compliance Officer

    • Tenure: 0.3yrs

Board Members

  • Ramesh Arora (64yo)

    MD & Director

    • Tenure: 3.8yrs
  • Ajay Arora (51yo)

    Whole Time Director

    • Tenure: 0yrs
  • Anju Arora (57yo)

    Whole Time Director

    • Tenure: 9yrs
  • Geeta Arora (49yo)

    Whole Time Director

    • Tenure: 9yrs
  • Aditya Arora (25yo)

    CFO & Whole Time Director

    • Tenure: 4yrs
  • Kiran Verma (47yo)

    Non-Executive Independent Director

    • Tenure: 3.7yrs
    • Compensation: ₹12.00k
  • Pankaj Takkar (42yo)

    Non-Executive Independent Director

    • Tenure: 3.7yrs
    • Compensation: ₹12.00k
  • Ravi Singh (46yo)

    Non-Executive Independent Director

    • Tenure: 3.7yrs
    • Compensation: ₹12.00k

Company Information

Kwality Pharmaceuticals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kwality Pharmaceuticals Limited
  • Ticker: 539997
  • Exchange: BSE
  • Founded: 1983
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹387.032m
  • Shares outstanding: 10.38m
  • Website: https://www.kwalitypharma.com

Location

  • Kwality Pharmaceuticals Limited
  • Village NagKalan
  • Majitha Road
  • Amritsar
  • Punjab
  • 143601
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539997BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2016

Biography

Kwality Pharmaceuticals Limited manufactures and exports finished pharmaceutical formulations in a dosage form worldwide. It provides generic, hormone, oncology, and betalactum tablets; capsules; liquid or ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 13:02
End of Day Share Price2019/09/19 00:00
Earnings2019/03/31
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.