(1/11)
About Jagsonpal-
JPL is primarily a formulations company & has one manufacturing facility in Faridabad, which has been operational since
1964.
The company has adopted the strategy of clubbing all its products in seven groups for effective marketing & reducing costs.
About Jagsonpal-
JPL is primarily a formulations company & has one manufacturing facility in Faridabad, which has been operational since
1964.
The company has adopted the strategy of clubbing all its products in seven groups for effective marketing & reducing costs.
(2/11)
The Chairman & MD, Mr. J.S. Kochar, & his family have a 70.34% stake in the company.
JPL’s key brands include Lycored, Metadec, Indocap and Maintene, which continued to display stable growth despite being based on old molecules.
The Chairman & MD, Mr. J.S. Kochar, & his family have a 70.34% stake in the company.
JPL’s key brands include Lycored, Metadec, Indocap and Maintene, which continued to display stable growth despite being based on old molecules.
(3/11)
Key Rationales that are working for JPL-
1. Comfortable liquidity & healthy leverage-
JPL’s liquidity position is comfortable. It’s entire outstanding debt of ₹6.6 crore is in the form of interest-bearing unsecured loans from promoters with no fixed repayment date
Key Rationales that are working for JPL-
1. Comfortable liquidity & healthy leverage-
JPL’s liquidity position is comfortable. It’s entire outstanding debt of ₹6.6 crore is in the form of interest-bearing unsecured loans from promoters with no fixed repayment date
(4/11)
2. Moderate brand presence in select therapeutic categories, established track record of operations –
The company has a five
decade-long track record of operations. JPL derives most of its revenues from domestic formulation sales (94% sales
contribution in FY2021)
2. Moderate brand presence in select therapeutic categories, established track record of operations –
The company has a five
decade-long track record of operations. JPL derives most of its revenues from domestic formulation sales (94% sales
contribution in FY2021)
(5/11)
3. JPL’s working capital intensity witnessed sustained improvement since FY2018. This was
owing to a reduction in debtor days & inventory days, which stood at 25 days and 134days, respectively, as on March 31, 2021 vs 73 days & 164 days, respectively as on March 31, 2018.
3. JPL’s working capital intensity witnessed sustained improvement since FY2018. This was
owing to a reduction in debtor days & inventory days, which stood at 25 days and 134days, respectively, as on March 31, 2021 vs 73 days & 164 days, respectively as on March 31, 2018.
(6/11)
Other strong points-
4. Low debt to equity ratio
5. Healthy EBIT to Interest
6. Improved ROCE from 10.24 in sept 2019 vs 25.96 now
7. Increasing Profitability
Other strong points-
4. Low debt to equity ratio
5. Healthy EBIT to Interest
6. Improved ROCE from 10.24 in sept 2019 vs 25.96 now
7. Increasing Profitability
(7/11)
Jagsonpal Pharma Challenges-
1. Key products based on old molecules and key brands are under price control coverage –
This apart, some of the company’s key brands such as Lycored are under price control coverage, thus garnering lower margins.
Jagsonpal Pharma Challenges-
1. Key products based on old molecules and key brands are under price control coverage –
This apart, some of the company’s key brands such as Lycored are under price control coverage, thus garnering lower margins.
(8/11)
2. Intense competition in industry – JPL faces intense competition in the pharmaceutical industry, especially from the large
players in the industry.
Its margins have remained relatively low. ICRA notes that the margins have seen an improvement in the recent fiscals.
2. Intense competition in industry – JPL faces intense competition in the pharmaceutical industry, especially from the large
players in the industry.
Its margins have remained relatively low. ICRA notes that the margins have seen an improvement in the recent fiscals.
(9/11)
Strong Liquidity -
JPL’s liquidity is strong, as characterised by cash & cash equivalents of ₹47 crore as on Sept30, 2021. Having sold
its facility in Rudrapur in 2016, they reduced its working capital limits & utilised its cash balances for its working cap requirements
Strong Liquidity -
JPL’s liquidity is strong, as characterised by cash & cash equivalents of ₹47 crore as on Sept30, 2021. Having sold
its facility in Rudrapur in 2016, they reduced its working capital limits & utilised its cash balances for its working cap requirements
(10/11)
JPLs Shareholding -
• Majority shareholders: Promoters
• Mutual Funds: Held in 0.00
• FIIs: Held by 2 FIIs (0.11%)
• Highest Public shareholder: Investor Education & Protection Fund-mca (1.56%)
Individual Investors Holdings:23.7%
JPLs Shareholding -
• Majority shareholders: Promoters
• Mutual Funds: Held in 0.00
• FIIs: Held by 2 FIIs (0.11%)
• Highest Public shareholder: Investor Education & Protection Fund-mca (1.56%)
Individual Investors Holdings:23.7%
(11/11)
What do you think about Jagsonpal Pharma? Can it continue to outperform the market for long?
@DhanValue @AvadhMaheshwar2 @caniravkaria @kuttrapali26 @hafizul09 @KirtanShahCFP
Comment down below! 👇🏻
What do you think about Jagsonpal Pharma? Can it continue to outperform the market for long?
@DhanValue @AvadhMaheshwar2 @caniravkaria @kuttrapali26 @hafizul09 @KirtanShahCFP
Comment down below! 👇🏻
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