NSEI:NECLIFE

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Executive Summary

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


Snowflake Analysis

Good value 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

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


Market Performance


7 Day Return

-2.9%

NECLIFE

8.4%

IN Pharmaceuticals

0.4%

IN Market


1 Year Return

55.6%

NECLIFE

47.2%

IN Pharmaceuticals

3.2%

IN Market

Return vs Industry: NECLIFE exceeded the Indian Pharmaceuticals industry which returned 48.2% over the past year.

Return vs Market: NECLIFE exceeded the Indian Market which returned 2% over the past year.


Shareholder returns

NECLIFEIndustryMarket
7 Day-2.9%8.4%0.4%
30 Day-4.8%13.5%2.8%
90 Day60.7%22.3%20.9%
1 Year56.1%55.6%49.3%47.2%5.1%3.2%
3 Year-21.8%-22.4%32.8%28.9%1.4%-3.4%
5 Year-44.2%-44.9%3.2%-0.5%30.8%21.0%

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

Below Fair Value: NECLIFE (₹21.7) is trading below our estimate of fair value (₹134.21)

Significantly Below Fair Value: 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 (15.3x) compared to the IN Pharmaceuticals industry average (23.1x).

PE vs Market: NECLIFE is poor value based on its PE Ratio (15.3x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

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 (0.4x) compared to the IN Pharmaceuticals industry average (2x).


Next Steps

Future Growth

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

30.2%

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 Nectar Lifesciences 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 Nectar Lifesciences performed over the past 5 years?

-9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NECLIFE has high quality earnings.

Growing Profit Margin: NECLIFE's current net profit margins (1.3%) are lower than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: NECLIFE's earnings have declined by 9.9% 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 (-33.2%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (13.7%).


Return on Equity

High ROE: NECLIFE's Return on Equity (2.8%) is considered low.


Next Steps

Financial Health

How is Nectar Lifesciences's financial position?


Financial Position Analysis

Short Term Liabilities: NECLIFE's short term assets (₹16.2B) exceed its short term liabilities (₹12.5B).

Long Term Liabilities: NECLIFE's short term assets (₹16.2B) exceed its long term liabilities (₹2.5B).


Debt to Equity History and Analysis

Debt Level: NECLIFE's debt to equity ratio (69.3%) is considered high.

Reducing Debt: NECLIFE's debt to equity ratio has reduced from 96.6% to 69.3% over the past 5 years.

Debt Coverage: NECLIFE's debt is well covered by operating cash flow (36.2%).

Interest Coverage: NECLIFE's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Next Steps

Dividend

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

0.23%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: NECLIFE's dividend (0.23%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.65%).

High Dividend: NECLIFE's dividend (0.23%) is low compared to the top 25% of dividend payers in the Indian market (2.72%).


Stability and Growth of Payments

Stable Dividend: NECLIFE is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: NECLIFE is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

5.8yrs

Average board tenure


CEO

Sanjiv Goyal (60 yo)

25.58yrs

Tenure

₹18,091,940

Compensation

Mr. Sanjiv Goyal has been an Executive Chairman and Managing Director of Nectar Lifesciences Limited since June 1, 2006 and serves as its Executive Director. Mr. Goyal has more than 20 years of experience ...


CEO Compensation Analysis

Compensation vs Market: Sanjiv's total compensation ($USD241.14K) is above average for companies of similar size in the Indian market ($USD49.28K).

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


Board Members

NamePositionTenureCompensationOwnership
Sanjiv Goyal
Chairman & MD25.58yrs₹18.09m44.35%
₹ 2.2b
Dinesh Dua
Executive Director6.83yrs₹12.31mno data
Vivek Sett
Non-Independent Non-Executive Directorno data₹20.00kno data
Ajay Swaroop
Independent Director10yrs₹63.00kno data
Shamsher Chauhan
Independent Non-Executive Director10.5yrs₹79.00kno data
Meena Verma
Nominee Director1.5yrs₹10.00kno data
Rupinder Tewari
Independent Additional Director1.5yrs₹10.00kno data
Guljit Chaudhri
Additional Independent Director4.67yrs₹37.00kno data

5.8yrs

Average Tenure

65yo

Average Age

Experienced Board: NECLIFE's board of directors are considered experienced (5.8 years average tenure).


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

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: ₹4.967b
  • 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 Analysis2020/08/05 12:50
End of Day Share Price2020/08/05 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.