Stock research Report - Samrat Pharmachem Ltd

 Samrat Pharmachem Ltd

THE KING OF IODINE CHEMISTRY

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About the stock

SPL Was incorporated in June 1992 in Gujarat. It is promoted by Mr. Lalit Mehta and Mr. Rajesh Mehta company is in the manufacturing of iodine components that finds its application in pharma industries FMCG, animal feed agrochemical.

Company Values

1.  To enhance shareholders' value.
2. To protect the interests of shareholders and other stakeholders including customers, suppliers, banks, employees, and society at large.
3. To ensure transparency and integrity in communication and to make available full, accurate, and clear information to all concerned.
4. To ensure accountability for performance and to achieve excellence at all levels.
5. To provide corporate leadership of the highest standards for others to follow.

Samrat Pharmachem Limited is committed to:

1. Ensuring that the Board of Directors of the Company meet regularly, provide effective leadership, exercise control over management and monitor executive performance.
2. Establishing a framework of strategic control and continuously reviewing its efficacy. Establishing clearly documented and transparent management processes for policy
3. Development, implementation and review, decision-making, monitoring, control, and reporting.
4. Providing free access to the Board to all relevant information, advice, and resources as are necessary to enable it to carry out its role effectively.
5. Ensuring that all employees are responsible for compliance issues with all applicable statutes, regulations, code of conduct, policies as laid down by the Board and report
6. deviation or misconduct, if any, to the Board.

Key Financials

1. Market Cap₹ 60.7 Cr.
2. 10-16-2022
3. Current Price₹ 196 
4. 19-05-2022 = 394 Double
5. High / Low₹ 305 / 100
6. Stock P/E11.0
7. Book Value₹ 95.9
8. Dividend Yield0.00 %
9. ROCE24.0 %
10. ROE19.8 %
11. Face Value₹ 10.0

Compounded Sales Growth

            10 Years:       15%

            5 Years:          23%

            3 Years:         24%

            TTM:            39%

Compounded Profit Growth

        10 Years:           15%

        5 Years:             79%

        3 Years:             18%

        TTM:                 74%

Stock Price CAGR

        10 Years:·         20%

         5 Years:·         37%

         3 Years:·         32%

         1 Year:·         77%

Return on Equity

        10 Years:·         13%

        5 Years:·         16%

        3 Years:·         16%

        Last Year:        20%

Key event:

1. Rating Update 
2. Susceptibility to volatility in raw material prices

Strength Of company

1. Extensive experience of the promoter: promoter have experience of 30 years in the industry. company has increased its product range catering to various industrial segments of pharma, FMCG, animal feed, Agrochemical.

Business Outlook

1. The Indian pharmaceutical industry is the world’s third-largest in terms of volume and ranks 11th in terms of value. 
2. It is among the faster-growing markets and the largest exporter of generic drugs by volume. Outside of the US, India has the largest number of USFDA-approved pharmaceutical manufacturing facilities. 
3. Over the last year, India played a crucial role in supplying therapeutic drugs for COVID-19 treatment across the world and is also one of the key manufacturers of some of the COVID-19 vaccines. 
4. Going forward, India is likely to maintain a leadership position in the manufacture and supply of high-quality generic medicines as well as a major manufacturer of COVID-19 vaccines. 
5. The Indian pharmaceutical market recorded ~9.5% CAGR between 2016-20 to reach US$21 Billion. 
6. It is expected to grow at 8-11% CAGR to US$29-33 Billion by 2025. The COVID-19 pandemic has resulted in the enhancement of capacity utilization and growth in CAPEX in the pharmaceutical industry world over.

Strength Of stock Price

1. High Piotroski Score - Companies with strong financials
2. The company has low debt
3. Zero Promoter pledge
4. High ROE
5. The company possesses stable growth history and management debt
6. Stock price justifies its intrinsic value
7. Efficient cash conversion cycle of 39 days
8. Undervalued growth stock 
9. High-value stock low price to earning

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