NGL FINE CHEMICALS LTD
Q3 FY 21 RESULTS ANALYSIS
NGL Fine-Chem Ltd is a manufacturer of pharmaceuticals and intermediates for usage in veterinary and human health. It caters to various global companies to custom manufacture high quality pharmaceuticals with reliability and flexibility.
Its business is modelled around the changing customer demands and its ability to offer value-added innovative solutions to meet and even exceed these demands.
Products
› APIs Animal Health
› APIs Human Health
› Intermediates
› Finished Dosage Form
Management
Rahul Nachane : Managing Director
Rajesh Narayan Lawande : Whole Time Director & CFO
QUARTERLY RESULTS
NGL Fine Chem (in Rs. Cr.) |
Dec '20 |
Jun '20 |
Mar '20 |
Dec '19 |
Sep '19 |
YOY |
QOQ |
Net Sales |
72.72 |
42.37 |
35.44 |
37.42 |
37.21 |
95.43 |
71.63 |
Interest |
0.37 |
0.6 |
0.6 |
0.64 |
0.66 |
-43.94 |
-38.33 |
PBT |
23.43 |
12.93 |
0.31 |
1.72 |
2.73 |
758.24 |
81.21 |
Tax |
5.72 |
3.54 |
0.51 |
0.59 |
0.39 |
1366.67 |
61.58 |
FINAL NPT |
17.71 |
9.39 |
-0.2 |
1.13 |
2.35 |
653.62 |
88.6 |
Equity |
3.09 |
3.09 |
3.09 |
3.09 |
3.09 |
0 |
0 |
Basic EPS |
28.67 |
15.19 |
-0.32 |
1.82 |
3.8 |
654.47 |
88.74 |
Basic EPS 28.67
MP 1499
PE 13.39
VOLUME 7472 ONLY BSE
52 Week Range : 220 1,589
Volume 7,472
BV 160
FV 5
Yearly Results of NGL Fine Chem (in Rs. Cr.) |
Mar '20 |
Mar '19 |
Mar '18 |
Mar '17 |
Mar '16 |
Net Sales |
152.18 |
153.17 |
113.66 |
96.46 |
94.84 |
Raw Materials |
70.19 |
63.9 |
50.38 |
38.47 |
39.09 |
Employees Cost |
23.81 |
21.16 |
18.37 |
14.02 |
11.35 |
Depreciation |
7.27 |
6.3 |
4.56 |
3.08 |
2.72 |
Other Expenses |
43.03 |
37.34 |
28.07 |
22.73 |
22.57 |
Net Profit |
10.6 |
20.13 |
12.59 |
14.24 |
11.4 |
Equity |
3.09 |
3.09 |
3.09 |
3.09 |
3.09 |
Reserves |
98.12 |
89.03 |
68.95 |
56.32 |
41.13 |
Basic EPS |
17.16 |
32.58 |
20.38 |
23.05 |
18.45 |
Contract Manufacturing
Manufacturing Plants : NGL Fine-Chem Ltd has manufacturing plants located around Mumbai. These plants have been designed to meet the requirements of Drug regulatory agencies and are capable of a wide range of reaction capabilities.
Our current manufacturing facilities comprise of
Plant Area : 9000 m2
Glass Lined Reactor : 20 m3
Stainless Steel reactors : 40 m3
Gas Induction reactor : 3 m3
And other equipment consisting of Lead Lined /Mild Steel Reactor : H10 m3
Reactions ranging -30°C – 300°C can be carried out at our premises.
Pilot Plant
NGL Fine-chem Ltd has a pilot plant facility for the scale up and development of new products and processes.
The pilot plant facilities comprise of
Plant Area : 2000 sq.ft
Glass Reactor : 50 liters - 5 Nos
Stainless Steel reactors : 200 liters - 400 liters
Gas Induction reactor : 5 liters
Other equipment comprising of Bioreactor : 2000 Liters
Reaction Capabilities
Nitration
Halogenation
Hydrogenation
Chlorosulfonation
Diazotization
High temperature Reactions
Hazardous / Toxic Reactions
Oxidations
Alkylations
Custom Synthesis
The core expertise of NGL Fine-Chem Ltd is complex multi step organic synthesis for the manufacture of generic API’s and intermediates.
Our synthetic chemistry expertise coupled with problem - solving skills guide us to achieve safe and simple solutions to synthesize commercialize complex molecules, to meet your custom manufacturing needs.
We are committed to offer solutions to complete scale-up, process development and process validation and analytical services. With our complete range of reaction capabilities we work closely with you to deliver high-purity compounds as cost-effectively as possible.
Reaction Capabilities
• Nitration
• Halogenation
• Hydrogenation
• Chlorosulfonation
• Diazotizaton
• High temperature reactions
• Hazardous / Toxic reactions
• Oxidations
• Alkylations
WHY IT'S STRONG BUY
MOJO SCORE
Buy 82 Strong Buy
1 High Management Efficiency with a high ROE of 20.04%
2 Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.49 times
3 With a growth in Net Profit of 1467.26%, the Company declared Outstanding results in Dec 20
The company has declared positive results for the last 3 consecutive quarters
CASH AND CASH EQUIVALENTS(HY) Highest at Rs 9.65 cr
NET SALES(Q) Highest at Rs 72.72 cr
PBDIT(Q) Highest at Rs 22.40 cr.
4 Stock is technically in a Bullish range
The technical trend has improved from Mildly Bullish on 02-Feb-21 and has generated 6.47% returns since then
Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and DOW
1 YEAR RETURN - OUTPERFORMED THE SENSEX BY 239.57%
1W 5.75 % 1.71%
1M 22.86 % 4.2%
YTD 36.17 % 8.05%
1Y 263.7 % 24.13%
3Y 278.52 % 50.43%
5Y 618.71 % 124.47%
10Y 9276.15 % 191.04%
Dec 20 Results: : Outstanding result- Financial Trend score in Dec 20 is 33 which has improved of previous quarter score of 29
22 May : BRIEF-NGL Fine Chem Re-Appoints Rahul Nachane As MD
BUY TARGET : Rs 485.00
Shashank Kanodia(ICICIdirect.com) on 20th Mar 18
THINGS YOU SHOULD KNOW
Bulk Deal : No bulk deals in the last 1 week
Block Deal : No Block deals in the last 1 week
Dec 20 Results: : Outstanding result- Financial Trend score in Dec 20 is 33 which has improved of previous quarter score of 29
Industry Pharma
Market cap Rs 947.09 Cr (Micro Cap)
P/E 21.71
Industry P/E 31.29
Dividend Yield 0.12%
Debt Equity -0.27
Return on Equity 21.27%
Price to Book 7.55
Net Sales Rs 72.72 cr
Net Profit (Quarterly Results - Dec 2020) ::Rs 17.71cr
TECHNICAL RATING VERY BULLISH
STRENGTHS
Rising Net Cash Flow and Cash from Operating activity
Company with high TTM EPS Growth
Good quarterly growth in the recent results
Growth in Net Profit with increasing Profit Margin (QoQ)
Company with Low Debt
Increasing Revenue every quarter for the past 3 quarters
Increasing profits every quarter for the past 3 quarters
Company with Zero Promoter Pledge
Recent Results : Growth in Operating Profit with increase in operating margins (YoY)
Near 52 Week High
Stock gained more than 20% in one month
Companies with rising net profit margins - quarterly as well as TTM basis
Strong Momentum: Price above short, medium and long term moving averages
ANNUAL REPORT 2019-20
We reported net sales turnover of ₹ 149.45 Crores, net EBITDA of ₹ 23.87 Crores and PAT of ₹ 10.60 Crores in 2019-2020. Veterinary APIs accounted for 89% of the overall API sales whereas remaining was contributed by the human APIs, veterinary formulations and others. Exports continued to comprise the large part of our revenue at 74.03%.
I am further happy to state that the brownfield expansion at Tarapur, commissioned in February 2019, has commence commercial production. The validation batches are being undertaken for four products which are at different stages.
In addition, we have acquired Macrotech Polychem Pvt Ltd for a consideration of ₹ 7 Crores. We have commenced manufacturing at its facilities and are expecting higher utilisation in the coming years.
As we look to 2020-21 and beyond, we are in a great position to continue to grow from strength to strength. With a clear and compelling purpose, solid foundation and a well-positioned product portfolio, we shall continue to move ahead as per our long-term goals.
Warm Regards,
Rahul Nachane
Managing Director
Total Revenue from Exports Business 74.03%
Total Revenue from Indigenous Business 25.97%
PRODUCTWISE REVENUES:
Human APIs 2%
Veterinary APIs 89%
Veterinary Formulations 5%
Intermediates 2%
Others 2%
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