Our 4th company in the Series of best stocks below Rs. 100 in India 2021 is Marksans Pharma Ltd.
Let’s start with the Company profile
Company Profile :
Marksans Pharma Limited is a pharmaceutical company, which is engaged in the research, manufacturing and marketing of generic pharmaceutical formulations.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹3,299cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 13.83
Sector PE Ratio: 40.10
PE Ratio of this company is low than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 5.08
Sector PB Ratio : 5.55
PB Ratio of this company is low than Sector’s PB ratio. So it’s Average PB than the peers of this company.
Dividend Yield : 0.31%
Sector Dividend Yield : 0.61%
Dividend Yield of this company is low than Sector. Dividend of this is Below Average than the peers of this company.
ROE: 26.3%
ROCE: 24.5%
ROE (Return on equity) and ROCE (Return on capital equity) is Above Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 1,382.88 | 238.54 |
| 2020 | 1,134.54 | 117.02 |
| 2019 | 1,004.69 | 76.46 |
| 2018 | 921.16 | 32.93 |
You can see the company growth clearly in the above table, in 2019 Net profit was 76.46 Cr. only and in 2020, It increased to 117.02 Cr. and in 2021, it is increased to 238.54 Cr.
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2020 | 2019 | 2018 | 2017 |
| 247.08 | 249.76 | 250.33 | 312.13 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2020, Company have 247.08 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2020 | 2019 | 2018 | 2017 |
| 150.31 | 14.25 | 11.15 | -13.69 |
Debt Level: MARKSANS’s debt to equity ratio (2.6%) is considered satisfactory.
Reducing Debt: MARKSANS’s debt to equity ratio has reduced from 19.1% to 2.6% over the past 5 years.
Debt Coverage: MARKSANS’s debt is well covered by operating cash flow (752.9%).
Interest Coverage: MARKSANS’s interest payments on its debt are well covered by EBIT (38x coverage).
We should also check the Share Holding patterns of the company.
Share Holding Pattern
| Promotor Holding | Foreign Institution | Retail & Others | |
| Jun 2021 | 48.25% | 2.55% | 48.05% |
| Mar 2021 | 48.25% | 4.34% | 47.32% |
| Dec 2020 | 48.25% | 5.05% | 46.69% |
| Sep 2020 | 48.25% | 4.70% | 47.05% |
Above table showing there is no big change in Promotors holding which is 48.25% in June 2021. FIIs invested in June 2021 with 2.55% and retail investor is 48.05% .
Now We’ll check the return of the company, This company started from Rs. 1.94 at 03 Apr 2002. This company given 4,065% returns in last 19 years from 2002 to 09 Aug 2021. In last 1 year company given 66% return to their investors.
Investment Checklist for Marksans Pharma Ltd.
- The company is currently profitable
- Earnings have grown by 44.2% per year over past 5 years
- Debt level is low and not considered a risk
- Dividend is too low to be a concern
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins improved or MARKSANS became profitable
- At least 3 years of financial data is available
- Revenue is meaningful (₹14B)
- Market cap is meaningful (₹29B)
- MARKSANS does not have negative shareholders equity.
According to its historical performance we can predict stock target.
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Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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Entry Buying Zone : 65 to 70
Target: 100 (60% Upside)
Time Horizon: 1 Year
Risk Profile: Moderate Risk (Stock is 2.46x as volatile as Nifty)
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Hope you liked our 4th episode of best stock below Rs. 100 in 2021. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss