NSEI:NECLIFE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with moderate growth potential.

Risks

  • Nectar Lifesciences has significant price volatility in the past 3 months.
  • Nectar Lifesciences is not covered by any analysts.

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

-10.6%

NSEI:NECLIFE

-0.2%

IN Pharmaceuticals

-2.1%

IN Market


1 Year Return

-55.4%

NSEI:NECLIFE

-24.2%

IN Pharmaceuticals

-14.7%

IN Market

NECLIFE underperformed the Pharmaceuticals industry which returned -24.2% over the past year.

NECLIFE underperformed the Market in India which returned -14.7% over the past year.


Share holder returns

NECLIFEIndustryMarket
7 Day-10.6%-0.2%-2.1%
30 Day-8.7%-3.7%-4.2%
90 Day-35.3%-7.0%-10.9%
1 Year-55.3%-55.4%-23.5%-24.2%-12.9%-14.7%
3 Year-64.2%-64.5%-24.3%-25.9%17.7%11.5%
5 Year-64.1%-64.4%-6.8%-9.7%35.4%22.5%

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 based on future cash flows and its price relative to the stock market?

6.13x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Nectar Lifesciences's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Nectar Lifesciences's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Nectar Lifesciences is good value based on earnings compared to the IN Pharmaceuticals industry average.

Nectar Lifesciences is good value based on earnings compared to the India market.


Price Based on Expected Growth

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


Price Based on Value of Assets

Nectar Lifesciences is good value based on assets compared to the IN Pharmaceuticals industry average.


Next Steps

Future Growth

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

25.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Nectar Lifesciences is high growth as no revenue estimate data is available.

Nectar Lifesciences's earnings are expected to grow significantly at over 20% yearly.

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

Nectar Lifesciences's earnings growth is expected to exceed the India market average.

Nectar Lifesciences'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 Nectar Lifesciences will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Nectar Lifesciences's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

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

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


Return on Equity

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


Return on Assets

Nectar Lifesciences used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is Nectar Lifesciences's financial position?


Financial Position Analysis

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

Nectar Lifesciences's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Nectar Lifesciences's level of debt (72.5%) 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 (93.6% vs 72.5% today).

Debt is not well covered by operating cash flow (8.1%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.1x debt.


Next Steps

Dividend

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

0.38%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Nectar Lifesciences before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Nectar Lifesciences's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.65%).

Nectar Lifesciences's dividend is below the markets top 25% of dividend payers in India (2.64%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (42.8x 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 Nectar Lifesciences's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average board tenure


CEO

Dinesh Dua (64yo)

5.8yrs

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

Dinesh's remuneration is higher than average for companies of similar size in India.

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


Board Age and Tenure

4.8yrs

Average Tenure

64yo

Average Age

The tenure for the Nectar Lifesciences board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Dinesh Dua (64yo)

    CEO & Whole Time Director

    • Tenure: 5.8yrs
    • Compensation: ₹12.31m
  • Sanjiv Goyal (59yo)

    Chairman & MD

    • Tenure: 0.0yrs
    • Compensation: ₹18.09m
  • Sandeep Goel

    Chief Financial Officer

    • Tenure: 0.0yrs
    • Compensation: ₹2.46m
  • Ravi Aggarwal (71yo)

    Vice President of Accounts

    • Tenure: 0.0yrs
  • Sukriti Saini

    Company Secretary

    • Tenure: 0.0yrs

Board Members

  • Vivek Sett (64yo)

    Non-Independent Non-Executive Director

    • Tenure: 0.0yrs
    • Compensation: ₹20.00k
  • Dinesh Dua (64yo)

    CEO & Whole Time Director

    • Tenure: 5.8yrs
    • Compensation: ₹12.31m
  • Sanjiv Goyal (59yo)

    Chairman & MD

    • Tenure: 0.0yrs
    • Compensation: ₹18.09m
  • Ajay Swaroop (70yo)

    Independent Director

    • Tenure: 9.0yrs
    • Compensation: ₹63.00k
  • Shamsher Chauhan (81yo)

    Independent Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: ₹79.00k
  • Meena Verma (48yo)

    Nominee Director

    • Tenure: 0.5yrs
    • Compensation: ₹10.00k
  • Rupinder Tewari (63yo)

    Independent Additional Director

    • Tenure: 0.5yrs
    • Compensation: ₹10.00k
  • Guljit Sethi

    Additional Independent Director

    • Tenure: 3.7yrs
    • 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: ₹2.942b
  • 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 Analysis2019/08/25 12:45
End of Day Share Price2019/08/23 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.