Dear investor,
Please find below mentioned short term fundamental stock for delivery purpose.
RPG Life Sciences is engaged in the manufacturing and marketing of Formulations (Finished Dosage Forms) and Active Pharmaceutical Ingredients (APIs).(Source : 201903 Annual Report Page No: 65)
Company | CMP | Target | BSE Code | NSE Code |
RPG Life Sciences Ltd. | 265 | 380 | 532983 | RPGLIFE |
RPG Life Sciences, a part of RPG Enterprises, is an integrated pharmaceutical company operating in the domestic and international markets in the Branded Formulations, Global Generics and Synthetic APIs space. The company is a research based, pharmaceutical company, producing a wide range of quality, affordable medicines. Mr. H. V. Goenka is the Chairman of RPG life sciences with promoter shareholding of ~72%. The company has a market cap of Rs433 crore.
Investment rationale
Diverse product portfolio: RPG Life Sciences operates through three business verticals – API (20% revenue contribution), Domestic Formulations (59%) and International Formulations (21%). RPG has a diverse product portfolio spanning over 10 therapeutic areas including Nephrology, Oncology, Urology, Respiratory, etc. RPG enjoys strong brand recognition in anti-diarrheal, antacid, iron-vitamin, and nephrology segments.
Strong outlook for business verticals: Healthcare in India has evolved rapidly from being a product centric industry to a service driven sector, with delivery and medical insurance segments gaining prominence. Driven by increasing sales of generic medicines, continued growth in chronic therapies and greater penetration in rural markets, the domestic formulation market in India is expected to register a double-digit growth over the next five years. The International Formulations business will focus on new products, new partners, new markets and the outlook of this business looks promising. RPG is likely to capitalize these opportunities via brand extensions and new product launches where the company’s core competencies exist would also be chief growth drivers.
Robust FY20 performance: For the year FY2020, the company registered a turnaround performance led by the biggest contributing domestic business, which grew over 23%, much ahead of the market growth. Product portfolio rejuvenation, focus on prescription generation and sales force effectiveness enhancement were the key contributors. Overall for the company, all 4 quarters recorded fairly consistent sales and profit performance.
SafeSeniors tool to early identification of COVID-19: RPG in association with Seniority has launched “SafeSeniors”, unique predictive analysis tool designed especially to early identification of COVID-19 risk among the elderly people. The tool has been developed in consultation with the leading experts in the areas of infectious diseases, clinical pharmacology.
Valuation: The Company has registered ~7.7% & 25.7% CAGR growth on topline & bottomline for last 4 years. The company has almost debt-free status and generates strong return ratios at the end of FY20. At current price, the stock is trading at 11.3x of its one year forward earnings.
Fundamental :-
- Market Cap: 438.19 Cr.
- Current Price: 265.30
- 52 weeks High / Low 351.45 / 142.95
- Book Value: 106.76
- Stock P/E: 13.17
- Dividend Yield: 1.51 %
- ROCE: 9.84 %
- ROE: 6.88 %
- Sales Growth (3Yrs): 5.73 %
- Listed on BSE and NSE
- Face Value: 8.00
- PEG Ratio: 0.55
- Promoter holding: 72.07 %
- Pledged percentage: 0.00 %
- Debt: 6.64 Cr.
- Price to Earning: 13.17
- EPS: 17.54
- Net profit: 29.01 Cr.
- Profit growth: 208 %
- Profit growth 7Years: 43.64 %
- Net profit preceding 12months: 27.57 Cr.
- Profit growth 3Years: -2.20 %
- Dividend yield: 1.51 %
- Debt to equity: 0.04
- Sales last year: 330.16 Cr.
- Sales growth: 13.75 %
- Unpledged promoter holding: 72.07 %
- Investments: 0.00 Cr.
- Intrinsic Value: 154.39
Positive :
Duration of recommendation: Short to Medium term.
Best Regards,
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