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Panacea Biotec

NSEI:PANACEABIO
Snowflake Description

Adequate balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PANACEABIO
NSEI
₹10B
Market Cap
  1. Home
  2. IN
  3. Pharmaceuticals & Biotech
Company description

Panacea Biotec Limited, a biotechnology company, researches, develops, manufactures, and markets pharmaceuticals, biopharmaceuticals, vaccines, and natural/indigenous products in India. The last earnings update was 27 days ago. More info.


Add to Portfolio Compare Print
  • Panacea Biotec has significant price volatility in the past 3 months.
PANACEABIO Share Price and Events
7 Day Returns
0.5%
NSEI:PANACEABIO
1.5%
IN Biotechs
0%
IN Market
1 Year Returns
-30.9%
NSEI:PANACEABIO
-20.6%
IN Biotechs
-1.1%
IN Market
PANACEABIO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Panacea Biotec (PANACEABIO) 0.5% -18.4% -23.7% -30.9% 24% -13.3%
IN Biotechs 1.5% -6.6% -17.1% -20.6% 92.3% 165.9%
IN Market 0% -1.8% -0.4% -1.1% 31.5% 36.1%
1 Year Return vs Industry and Market
  • PANACEABIO underperformed the Biotechs industry which returned -20.6% over the past year.
  • PANACEABIO underperformed the Market in India which returned -1.1% over the past year.
Price Volatility
PANACEABIO
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Panacea Biotec to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Panacea Biotec.

NSEI:PANACEABIO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 18.6%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:PANACEABIO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.32
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.321 (1 + (1- 35%) (11.99%))
1.284
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.28
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.284 * 8.6%)
18.59%

Discounted Cash Flow Calculation for NSEI:PANACEABIO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Panacea Biotec is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:PANACEABIO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 18.59%)
2019 1,279.52 Est @ 28.9% 1,078.94
2020 1,567.32 Est @ 22.49% 1,114.45
2021 1,849.60 Est @ 18.01% 1,108.99
2022 2,124.67 Est @ 14.87% 1,074.22
2023 2,393.98 Est @ 12.68% 1,020.64
2024 2,660.61 Est @ 11.14% 956.50
2025 2,928.31 Est @ 10.06% 887.71
2026 3,200.88 Est @ 9.31% 818.23
2027 3,481.93 Est @ 8.78% 750.54
2028 3,774.81 Est @ 8.41% 686.12
Present value of next 10 years cash flows ₹9,496.34
NSEI:PANACEABIO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹3,774.81 × (1 + 7.55%) ÷ (18.59% – 7.55%)
₹36,772.37
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹36,772.37 ÷ (1 + 18.59%)10
₹6,683.85
NSEI:PANACEABIO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹9,496.34 + ₹6,683.85
₹16,180.19
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹16,180.19 / 61.25
₹264.16
NSEI:PANACEABIO Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:PANACEABIO represents 0.99873x of BSE:531349
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99873x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 264.16 x 0.99873
₹263.83
Value per share (INR) From above. ₹263.83
Current discount Discount to share price of ₹157.05
= -1 x (₹157.05 - ₹263.83) / ₹263.83
40.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Panacea Biotec is available for.
Intrinsic value
40%
Share price is ₹157.05 vs Future cash flow value of ₹263.83
Current Discount Checks
For Panacea Biotec to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Panacea Biotec's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Panacea Biotec's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Panacea Biotec's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Panacea Biotec's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:PANACEABIO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹6.68
BSE:531349 Share Price ** BSE (2019-06-25) in INR ₹157.25
Asia Biotechs Industry PE Ratio Median Figure of 9 Publicly-Listed Biotechs Companies 23.16x
India Market PE Ratio Median Figure of 2,825 Publicly-Listed Companies 15.38x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Panacea Biotec.

NSEI:PANACEABIO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:531349 Share Price ÷ EPS (both in INR)

= 157.25 ÷ 6.68

23.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Panacea Biotec is overvalued based on earnings compared to the Asia Biotechs industry average.
  • Panacea Biotec is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Panacea Biotec's expected growth come at a high price?
Raw Data
NSEI:PANACEABIO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Global Biotechs Industry PEG Ratio Median Figure of 54 Publicly-Listed Biotechs Companies 1.08x
India Market PEG Ratio Median Figure of 523 Publicly-Listed Companies 1.31x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Panacea Biotec, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Panacea Biotec's assets?
Raw Data
NSEI:PANACEABIO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹57.21
BSE:531349 Share Price * BSE (2019-06-25) in INR ₹157.25
India Biotechs Industry PB Ratio Median Figure of 8 Publicly-Listed Biotechs Companies 1.6x
India Market PB Ratio Median Figure of 3,653 Publicly-Listed Companies 0.96x
NSEI:PANACEABIO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:531349 Share Price ÷ Book Value per Share (both in INR)

= 157.25 ÷ 57.21

2.75x

* Primary Listing of Panacea Biotec.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Panacea Biotec is overvalued based on assets compared to the IN Biotechs industry average.
X
Value checks
We assess Panacea Biotec's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Panacea Biotec has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

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 Panacea Biotec 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
30%
Expected Biotechs industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Panacea Biotec expected to grow at an attractive rate?
  • Unable to compare Panacea Biotec's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Panacea Biotec's earnings growth to the India market average as no estimate data is available.
  • Unable to compare Panacea Biotec's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:PANACEABIO Future Growth Rates Data Sources
Data Point Source Value (per year)
Asia Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 30%
Asia Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 38%
India Market Earnings Growth Rate Market Cap Weighted Average 16.6%
India Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:PANACEABIO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:PANACEABIO Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 4,567 409
2018-03-31 5,928 1,180 -740
2017-03-31 5,440 1,307 -392

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Panacea Biotec is high growth as no earnings estimate data is available.
  • Unable to determine if Panacea Biotec is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:PANACEABIO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Panacea Biotec Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:PANACEABIO Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 6.68
2018-03-31 -12.08
2017-03-31 -6.40

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Panacea Biotec will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine Panacea Biotec's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  2. Panacea Biotec's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Pharmaceuticals & Biotech companies here
  3. Panacea Biotec's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Panacea Biotec's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Panacea Biotec has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Panacea Biotec performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Panacea Biotec's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Panacea Biotec has delivered over 20% year on year earnings growth in the past 5 years.
  • Panacea Biotec has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Panacea Biotec has become profitable in the last year making it difficult to compare the Asia Biotechs industry average.
Earnings and Revenue History
Panacea Biotec's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Panacea Biotec Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:PANACEABIO Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 4,567.00 409.10 1,470.80
2018-03-31 5,927.94 -739.78 1,715.55
2017-03-31 5,440.13 -391.82 1,797.22
2016-03-31 6,530.80 -182.90 1,708.10
2015-03-31 6,871.90 -1,065.00 1,668.10
2014-03-31 5,099.90 -1,121.30 2,661.40
2013-03-31 6,084.90 -2,342.80 2,739.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Panacea Biotec has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Panacea Biotec used its assets more efficiently than the Asia Biotechs industry average last year based on Return on Assets.
  • It is difficult to establish if Panacea Biotec improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Panacea Biotec's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Panacea Biotec has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Panacea Biotec's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Panacea Biotec's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Panacea Biotec's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Panacea Biotec's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Panacea Biotec's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Panacea Biotec Company Filings, last reported 2 months ago.

NSEI:PANACEABIO Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,473.40 1,155.10 270.50
2018-03-31 3,057.36 9,407.46 208.16
2017-03-31 3,662.15 9,952.17 96.48
2016-03-31 4,496.90 11,362.00 264.50
2015-03-31 4,747.10 11,087.80 573.80
2014-03-31 5,182.00 10,609.40 247.80
2013-03-31 6,330.40 9,805.60 452.20
  • Panacea Biotec's level of debt (33.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (204.8% vs 33.3% today).
  • Debt is well covered by operating cash flow (102.2%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on Panacea Biotec's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Panacea Biotec's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Panacea Biotec has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Panacea Biotec's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Panacea Biotec dividends.
If you bought ₹2,000 of Panacea Biotec shares you are expected to receive ₹0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Panacea Biotec's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Panacea Biotec's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:PANACEABIO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Asia Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 0.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1449 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:PANACEABIO Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2012-09-04 0.000 0.000
2012-05-21 0.000 0.000
2011-09-30 0.750 0.898
2011-05-13 0.750 0.474
2010-05-07 0.250 0.133
2009-06-01 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Panacea Biotec has not reported any payouts.
  • Unable to verify if Panacea Biotec's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Panacea Biotec's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Panacea Biotec has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Panacea Biotec's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Panacea Biotec afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Panacea Biotec has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sandeep Jain
COMPENSATION ₹6,600,000
AGE 52
TENURE AS CEO 17.3 years
CEO Bio

Mr. Sandeep Jain has been Joint Managing Director of Panacea Biotec Ltd. since February 1, 2002 and has been its Director since November 15, 1984. Mr. Jain holds B.Com.

CEO Compensation
  • Sandeep's compensation has increased in line with Panacea Biotec recently becoming profitable.
  • Sandeep's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Panacea Biotec management team in years:

17.3
Average Tenure
52
Average Age
  • The average tenure for the Panacea Biotec management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Soshil Jain

TITLE
Founder & Chairman
COMPENSATION
₹11M
AGE
84

Sandeep Jain

TITLE
Joint MD & Executive Director
COMPENSATION
₹7M
AGE
52
TENURE
17.3 yrs

Rajesh Jain

TITLE
MD & Whole-Time Director
COMPENSATION
₹7M
AGE
54
TENURE
17.3 yrs

Sumit Jain

TITLE
Director of Operations & Projects and Whole-Time Director
COMPENSATION
₹4M
AGE
37

Vinod Goel

TITLE
Group CFO
AGE
52

Ankesh Jain

TITLE
Director of Sales & Marketing and Whole-Time Director
COMPENSATION
₹2M
TENURE
3.2 yrs

Kulvinder Sarao

TITLE
Senior Vice President of Audit
AGE
56

Sanjay Trehan

TITLE
Head of Global Drug Discovery & Development
AGE
59

Sukhjeet Singh

TITLE
Chief Scientific Officer & RA (Pharma)
AGE
49

Sudhir Sharma

TITLE
Chief Scientist & Operational Officer in Biologicals
AGE
49
Board of Directors Tenure

Average tenure and age of the Panacea Biotec board of directors in years:

13.7
Average Tenure
61
Average Age
  • The average tenure for the Panacea Biotec board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Soshil Jain

TITLE
Founder & Chairman
COMPENSATION
₹11M
AGE
84
TENURE
34.8 yrs

Sandeep Jain

TITLE
Joint MD & Executive Director
COMPENSATION
₹7M
AGE
52
TENURE
34.6 yrs

Rajesh Jain

TITLE
MD & Whole-Time Director
COMPENSATION
₹7M
AGE
54
TENURE
34.6 yrs

Sumit Jain

TITLE
Director of Operations & Projects and Whole-Time Director
COMPENSATION
₹4M
AGE
37
TENURE
13.9 yrs

Ankesh Jain

TITLE
Director of Sales & Marketing and Whole-Time Director
COMPENSATION
₹2M
TENURE
3.2 yrs

Sunanda Jain

TITLE
Whole Time Director
COMPENSATION
₹5M
AGE
56
TENURE
1.3 yrs

Raghava Narasimhan

TITLE
Non-Executive Independent Director
COMPENSATION
₹340K
AGE
77
TENURE
18.4 yrs

Krishna Lal

TITLE
Non-Executive Independent Director
COMPENSATION
₹340K
AGE
78
TENURE
13.2 yrs

Namdeo Khamitkar

TITLE
Non-Executive Independent Director
COMPENSATION
₹260K
AGE
77
TENURE
13.4 yrs

Manjula Upadhyay

TITLE
Non-Executive Independent Director
COMPENSATION
₹250K
AGE
61
TENURE
4.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
04. Sep 18 Sell Rajesh Jain Individual 29. Aug 18 03. Sep 18 -295,818 ₹249.88 ₹-73,805,587
X
Management checks
We assess Panacea Biotec's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Panacea Biotec has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Did You Miss Panacea Biotec's 100% Share Price Gain?

Because Panacea Biotec is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. … Panacea Biotec actually saw its revenue drop by 6.3% per year over three years.

Simply Wall St -

Is Panacea Biotec Limited's (NSE:PANACEABIO) CEO Paid Enough To Stay Motivated?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Sandeep Jain's Compensation Compare With Similar Sized Companies. … Thus we can conclude that Sandeep Jain receives more in total compensation than the median of a group of companies in the same market, and of similar size to Panacea Biotec Limited

Simply Wall St -

Is Panacea Biotec Limited (NSE:PANACEABIO) Excessively Paying Its CEO?

Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability

Simply Wall St -

Who Are The Major Shareholders In Panacea Biotec Limited (NSE:PANACEABIO)?

Private Company Ownership Potential investors in PANACEABIO should also look at another important group of investors: private companies, with a stake of 29.92%, who are primarily invested because of strategic and capital gain interests. … With this size of ownership in PANACEABIO, this ownership class can affect the company's business strategy. … As a result, potential investors should further explore the company's business relations with these companies and find out if they can affect shareholder returns in the long-term.Next Steps: Institutional ownership level and composition in PANACEABIO is not high nor active enough to significantly impact its investment thesis.

Simply Wall St -

Can Panacea Biotec Limited (NSE:PANACEABIO) Improve Your Portfolio Returns?

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Based on this beta value, PANACEABIO appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … As a result, this aspect of PANACEABIO indicates a higher beta than a similar size company with a lower portion of fixed assets on their balance sheet.

Simply Wall St -

Who Are The Largest Shareholders In Panacea Biotec Limited (NSE:PANACEABIO)?

See our latest analysis for Panacea Biotec NSEI:PANACEABIO Ownership_summary Feb 9th 18 Institutional Ownership Institutional investors transact in large blocks which can influence the momentum of stock prices, at least in the short-term, especially when there is a low level of public shares available on the market to trade. … NSEI:PANACEABIO Insider_trading Feb 9th 18 General Public Ownership With 4.83% ownership, the general public are a relatively smaller ownership class in PANACEABIO. … As a result, potential investors should further explore the company's business relations with these companies and find out if they can affect shareholder returns in the long-term.Next Steps: With a low level of institutional ownership, investors in PANACEABIO need not worry about non-fundamental factors such as ownership structure causing large impact on stock prices.

Simply Wall St -

Why You Need To Look At This Factor Before Buying Panacea Biotec Limited (NSE:PANACEABIO)

If you are looking to invest in Panacea Biotec Limited’s (NSEI:PANACEABIO), or currently own the stock, then you need to understand its beta in order to understand how it can affect the risk of your portfolio. … A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Based on this beta value, PANACEABIO appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market.

Simply Wall St -

Have Investors Already Priced In Healthcare Growth For Panacea Biotec Limited (NSE:PANACEABIO)?

Panacea Biotec Limited (NSEI:PANACEABIO), a INR₹13.92B large-cap, operates in the healthcare industry, which continues to be affected by the sustained economic uncertainty and structural trends, such as an aging population, impacting the sector globally. … In this article, I’ll take you through the sector growth expectations, as well as evaluate whether Panacea Biotec is lagging or leading its competitors in the industry. … If your initial investment thesis is around the growth prospects of Panacea Biotec, there are other biotech companies that have delivered higher growth, and perhaps trading at a discount to the industry average.

Simply Wall St -

Company Info

Description

Panacea Biotec Limited, a biotechnology company, researches, develops, manufactures, and markets pharmaceuticals, biopharmaceuticals, vaccines, and natural/indigenous products in India. The company operates through Vaccines, Formulations, and Research and Development segments. Its product portfolio includes prescription products in various therapeutic areas, including pain management, diabetes and cardiovascular management, oncology, renal disease management, osteoporosis management, anti-tubercular, and gastro-intestinal care products and vaccines. The company also exports its products to approximately 30 countries. Panacea Biotec Limited was founded in 1984 and is based in New Delhi, India.

Details
Name: Panacea Biotec Limited
PANACEABIO
Exchange: NSEI
Founded: 1984
₹9,631,679,808
61,250,746
Website: http://www.panacea-biotec.com
Address: Panacea Biotec Limited
B-1 Extn./G-3,
Mohan Co-operative Industrial Estate,
New Delhi,
Delhi, 110044,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 531349 Equity Shares Mumbai Stock Exchange IN INR 18. Apr 1996
NSEI PANACEABIO Equity Shares National Stock Exchange of India IN INR 18. Apr 1996
Number of employees
Current staff
Staff numbers
0
Panacea Biotec employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 01:59
End of day share price update: 2019/06/25 00:00
Last earnings filing: 2019/05/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.