Amrutanjan Healthcare Ltd fundamental

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

 

Company	CMP	Target	BSE Code	NSE Code
Amrutanjan Healthcare Ltd.	490	540	590006	AMRUTANJAN

 

Amrutanjan Healthcare Ltd was incorporated in 1893 and has over 100 years of experience in over the counter pain relief products where the Amrutanjan Pain Balm (Yellow Balm) is the flagship brand of the company. Being pioneers of pain and congestion management, Amrutanjan believes caring for people's wellbeing is a dutiful task that truly touches millions of lives.

 

Investment rationale
 

Diversified Product mix: The Company manufactures Amrutanjan pain balm, Anoleum, Gripe Water, Inhaler, Dermal Ointment, Cetomix cough mixture, Castor Oil, Swas Mints 'Salofin' tablets, Amrutanjan cold rub, 'Hero' Super Pain Balm, Dragon Liquid Balm. The company offers products under five broad heads viz Pain Management, congestion management, Women Hygiene, beverage and other products. In beverages, it produces ORS with different flavor like apple and oranges in addition to mango fruit juice. It also produces decorn corn cap an ayurvedic medicine for corn removal in foot.

 

A popular brand amongst consumer, deep penetration through innovative route: Amrutanjan was ranked No.33 among top 50 brands in “Health and Personal Care” segment according to the Economic Times Brand Equity (Most Trusted Brands) 2018 Survey. In Head & Body pain products viz., balms, roll-on, Pain Management gel, cream, spray & lotion are on top of consumer choice. Women hygiene product brand is Comfy. Availability of product to customers is key success. Amrutanjan ranks as No 1 in Modern Trade in Head Category with the volume market share of 47% and Value market share of 43.3%. Amrutanjan products are currently available in 6500 MT stores. The acceptance of products has increased well among customers including new categories. Exclusive brand store was created in Amazon for Amrutanjan range of products. Products are currently available in the leading E commerce channels, viz., Amazon, Sasta Sundar, Medlife, Big Basket and Netmed. The company has plans to further expand the e-commerce channel in the coming years.

 

Attractive industrial environment: FMCG is the 4th largest sector in the Indian economy and it is valued at around Rs 4 lakh Crores, growing at 14%. Pain management is the largest segment of Amrutanjan. There are 180 million people in India who suffer from arthritis, 80% of people in Urban India has Vit-D deficiency while 95% takes steroids (anti-inflammatory drug) to control pain. With the share of unorganized market in the FMCG sector falling, the organized sector growth is expected to rise with increased level of brand consciousness, also augmented by the growth in modern retail. Rural consumption has increased, led by a combination of increasing incomes and higher aspiration levels; there is an increased demand for branded products in rural India. Amrutanjan’s long term growth strategies aim to encompass the above viewpoint to scale up its expansion in these markets. We are not expecting significant sales reduction in current Covid-19 outbreak given the FMCG nature of products available over the counter. However online sales and modern retail format sales could be impacted for 30-45 days during FY20e and FY21e.

 

Strong financial numbers: The Company has been reporting strong set of numbers with sales and net profit are growing at higher double digit. The company has been able to improve its EBITDA margin to 18%+ and it has strong balance sheet with zero debt on the book. The company enjoys return ratios of over 25-30% ROE and ROCE. The stock is currently trading at a PE of 52.4x.
 

• Market Cap:  1,431 Cr.
• Current Price:  489.60
• 52 weeks High / Low  558.70 / 251.00
• Book Value:  54.54
• Stock P/E: 44.43
• Dividend Yield: 0.43 %
• ROCE: 22.60 %
• ROE: 16.44 %
• Sales Growth (3Yrs): 8.12 %
• Listed on BSE and NSE
• Company Website
• Face Value:  1.00

• PEG Ratio: 5.60
• Promoter holding: 50.02 %
• Pledged percentage: 0.00 %
• Debt:  1.70 Cr.
• Price to Earning: 43.81
• EPS:  11.02
• Net profit:  32.21 Cr.
• Profit growth: 27.06 %
• Profit growth 7Years: 11.22 %
• Net profit preceding 12months: 25.08 Cr.
• Profit growth 3Years: 4.83 %
• Dividend yield: 0.43 %
• Debt to equity: 0.01
• Sales last year:  261.48 Cr.
• Sales growth: 0.36 %
• Unpledged promoter holding: 50.02 %
• Investments:  18.21 Cr.
• Intrinsic Value:  987.80

Duration of recommendation: Medium to long term.