NSEI:NECLIFE

Stock Analysis Report

Executive Summary

Nectar Lifesciences Limited manufactures and sells pharmaceutical products in India and internationally.

Snowflake

Fundamentals

Undervalued with adequate balance sheet.

Share Price & News

How has Nectar Lifesciences's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.8%

NECLIFE

3.0%

IN Pharmaceuticals

3.1%

IN Market


1 Year Return

-47.2%

NECLIFE

-18.9%

IN Pharmaceuticals

3.7%

IN Market

Return vs Industry: NECLIFE underperformed the Indian Pharmaceuticals industry which returned -18.9% over the past year.

Return vs Market: NECLIFE underperformed the Indian Market which returned 3.7% over the past year.


Shareholder returns

NECLIFEIndustryMarket
7 Day-3.8%3.0%3.1%
30 Day-20.2%-4.2%5.7%
90 Day-17.3%-2.5%1.4%
1 Year-47.1%-47.2%-18.2%-18.9%5.9%3.7%
3 Year-68.0%-68.2%-26.1%-27.6%22.3%16.0%
5 Year-67.1%-67.5%-11.7%-14.3%42.5%28.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Nectar Lifesciences undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NECLIFE (₹11.45) is trading below our estimate of fair value (₹59.39)

Significantly Undervalued: NECLIFE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NECLIFE is good value based on its PE Ratio (5.7x) compared to the Pharmaceuticals industry average (15.8x).

PE vs Market: NECLIFE is good value based on its PE Ratio (5.7x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NECLIFE is good value based on its PB Ratio (0.2x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

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

25.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NECLIFE's forecast earnings growth (25% per year) is above the savings rate (7.6%).

Earnings vs Market: NECLIFE's earnings (25% per year) are forecast to grow faster than the Indian market (18.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

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

High Growth Revenue: Insufficient data to determine if NECLIFE'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 NECLIFE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Nectar Lifesciences performed over the past 5 years?

-6.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NECLIFE's earnings have declined by -6.9% per year over the past 5 years.

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

Earnings vs Industry: NECLIFE had negative earnings growth (-6%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (14.4%).


Return on Equity

High ROE: NECLIFE's Return on Equity (4.3%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Nectar Lifesciences's financial position?


Financial Position Analysis

Short Term Liabilities: NECLIFE's short term assets (₹16.7B) exceeds its short term liabilities (₹13.0B)

Long Term Liabilities: NECLIFE's short term assets (16.7B) exceeds its long term liabilities (3.0B)


Debt to Equity History and Analysis

Debt Level: NECLIFE's debt to equity ratio (72.5%) is considered high

Reducing Debt: NECLIFE's debt to equity ratio has reduced from 93.6% to 72.5% over the past 5 years.

Debt Coverage: NECLIFE's debt is well covered by operating cash flow (29.8%).

Interest Coverage: NECLIFE's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: NECLIFE's debt is covered by short term assets (assets are 2.082230x debt).


Next Steps

Dividend

What is Nectar Lifesciences's current dividend yield, its reliability and sustainability?

0.41%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NECLIFE's dividend (0.41%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: NECLIFE's dividend (0.41%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).

Stable Dividend: NECLIFE's dividend payments have been volatile in the past 10 years.

Growing Dividend: NECLIFE's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (2.3%), NECLIFE's dividend payments are thoroughly 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 Nectar Lifesciences's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average board tenure


CEO

Dinesh Dua (64yo)

6yrs

Tenure

₹12,306,141

Compensation

Dr. Dinesh Dua, MBA has been the Chief Executive Officer of Nectar Lifesciences Limited since October 14, 2013. Dr. Dua has over 30 years professional experience, predominately in the Indian pharmaceutical ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Dinesh's total compensation is reasonable compared to companies of similar size in the Indian market.

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


Board Age and Tenure

4.9yrs

Average Tenure

64yo

Average Age

Experienced Board: NECLIFE's board of directors are considered experienced (4.9 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

  • Dinesh Dua (64yo)

    CEO & Whole Time Director

    • Tenure: 6yrs
    • Compensation: ₹12.31m
  • Sanjiv Goyal (59yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹18.09m
  • Sandeep Goel

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: ₹2.46m
  • Ravi Aggarwal (71yo)

    Vice President of Accounts

    • Tenure: 0yrs
  • Sukriti Saini

    Company Secretary

    • Tenure: 0yrs

Board Members

  • Vivek Sett (64yo)

    Non-Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: ₹20.00k
  • Dinesh Dua (64yo)

    CEO & Whole Time Director

    • Tenure: 6yrs
    • Compensation: ₹12.31m
  • Sanjiv Goyal (59yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹18.09m
  • Ajay Swaroop (70yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: ₹63.00k
  • Shamsher Chauhan (81yo)

    Independent Non-Executive Director

    • Tenure: 9.7yrs
    • Compensation: ₹79.00k
  • Meena Verma (48yo)

    Nominee Director

    • Tenure: 0.7yrs
    • Compensation: ₹10.00k
  • Rupinder Tewari (63yo)

    Independent Additional Director

    • Tenure: 0.7yrs
    • Compensation: ₹10.00k
  • Guljit Sethi

    Additional Independent Director

    • Tenure: 3.8yrs
    • Compensation: ₹37.00k

Company Information

Nectar Lifesciences Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nectar Lifesciences Limited
  • Ticker: NECLIFE
  • Exchange: NSEI
  • Founded: 1995
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹2.579b
  • Shares outstanding: 224.26m
  • Website: https://www.neclife.com

Number of Employees


Location

  • Nectar Lifesciences Limited
  • SCO 38-39
  • Sector 9d
  • Chandigarh
  • Chandigarh
  • 160009
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532649BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2005
NECLIFENSEI (National Stock Exchange of India)YesEquity SharesININRJul 2005
NECLFBDL (Bourse de Luxembourg)GDR EACH REPR 1 ORD INR1 REG'S'LUUSDMar 2010

Biography

Nectar Lifesciences Limited manufactures and sells pharmaceutical products in India and internationally. The company offers contract research and manufacturing services, including process development and o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:46
End of Day Share Price2019/10/17 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.