NGL FINE CHEMICALS LTD - Q3 FY 21 RESULTS ANALYSIS

 

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%