BSE:541400

Stock Analysis Report

Executive Summary

ZIM Laboratories Limited manufactures, markets, and sells formulation drugs and pre formulation ingredients in India and internationally.

Snowflake

Fundamentals

Good value with adequate balance sheet.

Risks

  • ZIM Laboratories is not covered by any analysts.

Share Price & News

How has ZIM Laboratories's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.9%

BSE:541400

2.8%

IN Pharmaceuticals

1.3%

IN Market


1 Year Return

-37.4%

BSE:541400

-9.6%

IN Pharmaceuticals

-1.5%

IN Market

541400 underperformed the Pharmaceuticals industry which returned -9.6% over the past year.

541400 underperformed the Market in India which returned -1.5% over the past year.


Share holder returns

541400IndustryMarket
7 Day-7.9%2.8%1.3%
30 Day0.8%2.7%-0.8%
90 Day-6.3%-10.9%-3.7%
1 Year-37.2%-37.4%-9.0%-9.6%0.3%-1.5%
3 Yearn/a-22.9%-24.2%29.2%22.6%
5 Yearn/a8.9%5.9%47.8%33.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is ZIM Laboratories undervalued based on future cash flows and its price relative to the stock market?

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

ZIM Laboratories's share price is below the future cash flow value, and at a moderate discount (> 20%).

ZIM Laboratories's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

ZIM Laboratories is good value based on earnings compared to the IN Pharmaceuticals industry average.

ZIM Laboratories is good value based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for ZIM Laboratories, we can't assess if its growth is good value.


Price Based on Value of Assets

ZIM Laboratories is good value based on assets compared to the IN Pharmaceuticals industry average.


Next Steps

Future Growth

How is ZIM Laboratories expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if ZIM Laboratories is high growth as no revenue estimate data is available.

ZIM Laboratories's earnings are expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).

Unable to compare ZIM Laboratories's revenue growth to the India market average as no estimate data is available.

ZIM Laboratories's earnings growth is positive but not above the India market average.

ZIM Laboratories's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if ZIM Laboratories will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has ZIM Laboratories performed over the past 5 years?

30.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

ZIM Laboratories has delivered over 20% year on year earnings growth in the past 5 years.

ZIM Laboratories's 1-year earnings growth is negative, it can't be compared to the 5-year average.

ZIM Laboratories's 1-year earnings growth is negative, it can't be compared to the IN Pharmaceuticals industry average.


Return on Equity

ZIM Laboratories has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

ZIM Laboratories used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

ZIM Laboratories has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is ZIM Laboratories's financial position?


Financial Position Analysis

ZIM Laboratories is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

ZIM Laboratories's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

ZIM Laboratories's level of debt (41.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (72.1% vs 41.2% today).

Debt is well covered by operating cash flow (58.8%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.9x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.1x debt.


Next Steps

Dividend

What is ZIM Laboratories's current dividend yield, its reliability and sustainability?

0.43%

Current Dividend Yield


Dividend Yield and Payments Analysis

ZIM Laboratories's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.56%).

ZIM Laboratories's dividend is below the markets top 25% of dividend payers in India (2.21%).

It is too early to tell whether ZIM Laboratories has stable dividend payments.

ZIM Laboratories only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (19x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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


CEO

Anwar Daud

Mr. Anwar Siraj Daud, M.Pharm has been the Managing Director of Zim Laboratories Limited since April 01, 2009. He also appointed as Chairman of the Zim Laboratories Limited. Mr. Daud served as Technical Di ...


CEO Compensation Analysis

Anwar's remuneration is lower than average for companies of similar size in India.

Anwar's compensation has been consistent with company performance over the past year, both up more than 20%.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Anwar Daud

    Chairman & MD

  • Niraj Dhadiwal

    Director of Business Development

  • Riaz Ahmed Kamal

    Director of Administration

  • Zulfiquar Kamal

    Director of Finance & Director

  • Prakash Sapkal

    Director of Operations

  • Vijay Fudke

    Senior Vice President of Technical Services

  • Piyush Nikhade

    Company Secretary & Compliance Officer

    • Tenure: 1.8yrs
  • Shyam Patro

    Chief Financial Officer

    • Tenure: 0.3yrs

Board Members

  • Anwar Daud

    Chairman & MD

  • Kavita Loya

    Independent Director

    • Tenure: 1.8yrs
  • Veerendra Parashar

    Independent Director

  • Niraj Dhadiwal

    Director of Business Development

  • Suprakash Chakravarty

    Independent Director

  • Zakir Vali

    Chairman Emeritus

    • Compensation: 600.00k
  • Naresh Gaikwad (64yo)

    Independent Director

  • Riaz Ahmed Kamal

    Director of Administration

    • Tenure: 21.5yrs
  • Prakash Sapkal

    Director of Operations

  • Zulfiquar Kamal

    Director of Finance & Director

Company Information

ZIM Laboratories Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ZIM Laboratories Limited
  • Ticker: 541400
  • Exchange: BSE
  • Founded: 1984
  • Industry: pharmaceuticals
  • Sector: pharmaceuticals & biotech
  • Market Cap: ₹1.828b
  • Shares outstanding: 16.18m
  • Website: Click here

Location

  • ZIM Laboratories Limited
  • Sadoday Gyan
  • Ground Floor
  • Nagpur
  • Maharashtra
  • 440 013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
541400BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2018

Biography

ZIM Laboratories Limited manufactures, markets, and sells formulation drugs and pre formulation ingredients in India and internationally. The company offers technology-based drug delivery solutions and non ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/18 13:09
End of Day Share Price2019/07/18 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.