NSEI:BALPHARMA

Stock Analysis Report

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Executive Summary

Bal Pharma Limited manufactures and markets pharmaceutical formulations and active pharmaceutical ingredients (APIs) in India and internationally.


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has Bal Pharma's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BALPHARMA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.5%

BALPHARMA

10.0%

IN Pharmaceuticals

-0.5%

IN Market


1 Year Return

28.1%

BALPHARMA

46.3%

IN Pharmaceuticals

1.6%

IN Market

Return vs Industry: BALPHARMA underperformed the Indian Pharmaceuticals industry which returned 43.7% over the past year.

Return vs Market: BALPHARMA exceeded the Indian Market which returned 1.4% over the past year.


Shareholder returns

BALPHARMAIndustryMarket
7 Day14.5%10.0%-0.5%
30 Day10.0%11.7%2.4%
90 Day21.8%20.2%18.6%
1 Year31.0%28.1%48.5%46.3%3.6%1.6%
3 Year-52.5%-54.4%24.3%20.7%-2.4%-7.0%
5 Year-37.9%-42.0%2.0%-1.6%24.9%15.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Bal Pharma undervalued compared to its fair value and its price relative to the market?

1.06x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BALPHARMA (₹46.95) is trading above our estimate of fair value (₹6.91)

Significantly Below Fair Value: BALPHARMA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BALPHARMA is unprofitable, so we can't compare its PE Ratio to the IN Pharmaceuticals industry average.

PE vs Market: BALPHARMA is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BALPHARMA is good value based on its PB Ratio (1.1x) compared to the IN Pharmaceuticals industry average (1.9x).


Next Steps

Future Growth

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

29.5%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Bal Pharma has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Bal Pharma performed over the past 5 years?

-38.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BALPHARMA is currently unprofitable.

Growing Profit Margin: BALPHARMA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BALPHARMA is unprofitable, and losses have increased over the past 5 years at a rate of 38.4% per year.

Accelerating Growth: Unable to compare BALPHARMA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BALPHARMA is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (15.9%).


Return on Equity

High ROE: BALPHARMA has a negative Return on Equity (-12.28%), as it is currently unprofitable.


Next Steps

Financial Health

How is Bal Pharma's financial position?


Financial Position Analysis

Short Term Liabilities: BALPHARMA's short term assets (₹1.7B) exceed its short term liabilities (₹1.5B).

Long Term Liabilities: BALPHARMA's short term assets (₹1.7B) exceed its long term liabilities (₹390.0M).


Debt to Equity History and Analysis

Debt Level: BALPHARMA's debt to equity ratio (205.1%) is considered high.

Reducing Debt: BALPHARMA's debt to equity ratio has increased from 85.7% to 205.1% over the past 5 years.

Debt Coverage: BALPHARMA's debt is not well covered by operating cash flow (6.8%).

Interest Coverage: BALPHARMA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Bal Pharma current dividend yield, its reliability and sustainability?

2.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BALPHARMA's dividend (2.14%) is higher than the bottom 25% of dividend payers in the Indian market (0.67%).

High Dividend: BALPHARMA's dividend (2.14%) is low compared to the top 25% of dividend payers in the Indian market (2.78%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BALPHARMA has been paying a dividend for less than 10 years.

Growing Dividend: BALPHARMA's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: BALPHARMA is paying a dividend but the company is unprofitable.


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

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Shailesh Siroya (54 yo)

1.58yrs

Tenure

₹8,000,000

Compensation

Mr. Shailesh Dheerajmal Siroya serves as the Managing Director of BAL Pharma Limited. Mr. Siroya served as the Managing Director of BAL Pharma Limited since August 1, 1994. With rich experience, Mr. Siroya ...


CEO Compensation Analysis

Compensation vs Market: Shailesh's total compensation ($USD106.77K) is above average for companies of similar size in the Indian market ($USD49.49K).

Compensation vs Earnings: Shailesh's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Shailesh Siroya
MD & Executive Director1.58yrs₹8.00m11.62%
₹ 70.8m
Subba Prasanna
Whole Time Director26yrs₹3.18m0.14%
₹ 868.6k
G. Rengarajan
Chief Financial Officer0.75yrno datano data
Ravindra Kothari
Deputy General Manager of Internal Auditno datano datano data
Preeti Singh
Company Secretary & Compliance officer0.25yrno datano data
Nabjit Sharma
General Manager of International Marketingno datano datano data
Archana Mitra
Vice President of International Marketing and Marketing Professionalno datano datano data
M. George
Production Advisorno datano datano data

0.8yrs

Average Tenure

54yo

Average Age

Experienced Management: BALPHARMA's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Shailesh Siroya
MD & Executive Director1.58yrs₹8.00m11.62%
₹ 70.8m
Subba Prasanna
Whole Time Director26yrs₹3.18m0.14%
₹ 868.6k
Premchand Bhantia Bhandari
Additional Independent Director5.42yrs₹8.00kno data
C.V. Srinivas
Additional Independent Director1.17yrsno datano data
Himesh Virupakshaya
Executive & Non Independent Additional Director0.92yrno datano data
Nicola Neeladri
Additional Women Non Executive Independent Director0.25yrno datano data
H. Venkatesh
Additional Independent Non Executive Director0.25yrno datano data

1.2yrs

Average Tenure

54yo

Average Age

Experienced Board: BALPHARMA's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Bal Pharma Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bal Pharma Limited
  • Ticker: BALPHARMA
  • Exchange: NSEI
  • Founded: 1987
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹609.412m
  • Shares outstanding: 14.17m
  • Website: https://www.balpharma.com

Location

  • Bal Pharma Limited
  • Lakshmi Narayan Complex
  • 5th Floor
  • Bengaluru
  • Karnataka
  • 560052
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524824BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2002
BALPHARMANSEI (National Stock Exchange of India)YesEquity SharesININRJan 2002

Biography

Bal Pharma Limited manufactures and markets pharmaceutical formulations and active pharmaceutical ingredients (APIs) in India and internationally. The company offers prescription drugs, generics, OTC produ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 12:41
End of Day Share Price2020/08/03 00:00
Earnings2019/12/31
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.