Hight promoter holding and low Debt small-caps

Dear investor,

Please find below mentioned short term fundamental stock for delivery purpose.

Fundamental :-

• Market Cap:  500.54 Cr.
• Current Price:  305
• 52 weeks High / Low  351.45 / 142.95
• Book Value:  106.76
• Stock P/E: 15.04
• Dividend Yield: 1.32 %
• ROCE: 9.84 %
• ROE: 6.88 %
• Sales Growth (3Yrs): 5.73 %
• Listed on BSE and NSE
• Company Website
• Face Value:  8.00

• PEG Ratio: 0.63
• Promoter holding: 72.07 %
• Pledged percentage: 0.00 %
• Debt:  6.64 Cr.
• Price to Earning: 15.04
• 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: 1.32 %
• 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:  176.31

 

	CMP	Target	BSE Code	NSE Code
	305	440	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 Rs477 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.
 

Outook & Valuation: The Company has registered ~7.7% & 25.7% CAGR growth on topline & bottomline for last 4 years. The company has comfortable debt to equity ratio and generates strong return ratios for FY20. At current price, the stock is trading at 12.7x of its one year forward earnings.
 

Duration of recommendation: Short to Medium term.

Note

Before investment advice your financial advisor.