About The Company
NGL Fine-Chem Ltd is a Maharashtra based company manufacturing and exporting Bulk Drugs
(APIs – Active Pharma Ingredients)
The company right now has a limited product portfolio, Which they are
planning to expand soon.
The Ace Investor – Value Pick
(BSE:532707) NGL Fine-Chem Ltd.
The stock is currently trading around Rs 71 with a market cap of 44
crores.
Current P/E is around 8 and Promoter Holding is strong at 62.86%.
Like our earlier picks (SKM and DYNEMIC) NGL too is a export driven
company.
The company has seen a sharp growth, i.e. the Total Sales for FY13 were
at 55.57 crores and Net Profit was at 2.91 crores while for FY14 sales rose to
78.87 crores and Net Profit rose to 4.53 crores.
Even the OPM improved from 13.28% to 13.88%.
At current P/E of 8, NGL if compared to other Human Pharma/API stocks
is cheap but there are not many veterinary dependent API/Pharma companies
listed on the exchange except for Hester Biosciences which actually is a
Vaccine and Pharma company for Avian,Swine & Large Animals trading at a P/E of 35.55.
NGL has been a growing company, It has shown consistent growth right from
FY05, here is the Annual Results table attached below.
Mar 05
|
Mar 06
|
Mar 07
|
Mar 08
|
Mar 09
|
Mar 10
|
Mar 11
|
Mar 12
|
Mar 13
|
Mar 14
|
||
Sales
|
10.30
|
11.61
|
19.46
|
12.64
|
24.63
|
28.00
|
35.04
|
36.11
|
55.57
|
78.87
|
|
Operating Profit
|
1.99
|
1.21
|
3.24
|
1.08
|
4.25
|
5.04
|
4.86
|
3.70
|
7.38
|
10.95
|
|
OPM
|
19.32%
|
10.42%
|
16.65%
|
8.54%
|
17.26%
|
18.00%
|
13.87%
|
10.25%
|
13.28%
|
13.88%
|
|
Other Income
|
0.51
|
0.51
|
0.12
|
0.13
|
0.08
|
0.17
|
0.49
|
0.13
|
0.19
|
0.09
|
|
EBIDT
|
2.50
|
1.72
|
3.36
|
1.21
|
4.33
|
5.21
|
5.35
|
3.83
|
7.57
|
11.04
|
|
Interest
|
0.13
|
0.25
|
0.42
|
0.41
|
0.43
|
0.50
|
0.56
|
0.92
|
1.18
|
1.29
|
|
Depreciation
|
0.24
|
0.42
|
0.51
|
0.59
|
0.76
|
0.78
|
0.94
|
1.35
|
1.93
|
2.32
|
|
Profit before tax
|
2.13
|
1.05
|
2.43
|
0.21
|
3.15
|
3.94
|
3.85
|
1.56
|
4.46
|
7.43
|
|
Tax
|
0.34
|
0.24
|
0.84
|
0.04
|
1.19
|
1.23
|
1.43
|
0.50
|
1.54
|
2.18
|
|
Net profit
|
1.78
|
0.81
|
1.59
|
0.16
|
1.96
|
2.70
|
2.42
|
1.05
|
2.91
|
4.53
|
|
Adjusted EPS in
|
5.93
|
1.31
|
2.56
|
0.26
|
3.16
|
4.35
|
3.90
|
1.69
|
4.69
|
7.31
|
As above inputs have made it clear that NGL has a lot of potential, And future outlook is for stable growth even if the product portfolio doesn't expand hugely.
Currently trading around 71, Buy this undervalued stock to play the pharma growth story for a target of Rs 200 in mid to long-term.
