Ashish Kacholia pharma stock trading at a discount of over 15% to keep on your radar 

This fundamentally strong stock engaged in manufacturing of a wide range of oncology (anti-cancer) drugs in India, is currently trading at a 17 percent discount from its 52-week high. Known for its solid financials and consistent growth, the company remains a key player in its sector. With attractive valuations and strong fundamentals, it could be a promising opportunity for long-term investors. 

Share price movement

With a market capitalization of Rs.1,847 crores, the shares of Beta Drugs Ltd closed at Rs.1,840.00 each, reflecting a 17 percent drop from its 52-week high price of Rs.2,215.24 per share. On Tuesday, the stock reached an intra-day low of Rs.1,821.00 each, rising 2.2 percent from its previous closing price of Rs.1,781.50 apiece. 

Business Overview

Beta Drugs Limited is an Indian pharmaceutical company specializing in oncology. It manufactures a wide range of anti-cancer products, including tablets, capsules, injections, and lyophilized formulations. Ranked among the top 10 oncology firms in India, its key brands like Adcumin (supportive care) and Dasatinib (generic) enjoy strong market leadership. The company has expanded its global footprint to over 46 countries and holds key regulatory approvals from Brazil and the European Union.

Manufacturing and R&D Capabilities

The company operates advanced manufacturing facilities that comply with WHO-GMP standards. These facilities specialize in the production of oncology products and have the capabilities to develop innovative drug delivery systems and non-biological complex drugs.

BDL focuses on research and development, with efforts directed towards the development of new products, including New Innovative Biologics (NIBs) and PARP inhibitors. The R&D team works closely with accredited institutes to conduct bio-analytical studies supporting preclinical and clinical trials.

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Domestic and International Growth 

The company has achieved impressive growth across its various segments. Domestic own-brand sales have increased by 30 percent, reflecting strong performance in the local market. International business saw a remarkable 141 percent growth, demonstrating significant expansion in global markets. Additionally, the API (Active Pharmaceutical Ingredient) business experienced a 20 percent growth, contributing to the overall positive performance.

Financial Overview

According to its recent financial updates, Beta Drugs Ltd reported consolidated revenue of Rs.180 crores in H1 FY25, marking a 28 percent increase from Rs.141 crores in H1 FY24. Similarly, the company saw a 20 percent incline in net profit to Rs.24.00 crores, compared to Rs.20.00 crores in the same period. 

Ratio Analysis

The company has a Return on Capital Employed (ROCE) of 28.54 percent and a Return on Equity (ROE) of 22.67 percent. Its Price-to-Earnings (P/E) ratio stands at 46.33, higher than the industry average of 30.53. Furthermore, the company maintains a solid current ratio of 2.36, a debt-to-equity ratio of 0.11, and an Earnings Per Share (EPS) of Rs.37.9. 

Shareholding Pattern

As of December 2024, the shareholding pattern of Beta Drugs Ltd shows that promoters hold 66.73 percent stake, while Foreign Institutional Investors hold 1.15 percent, Domestic Institutional Investors hold 0.17 percent, and Retail Investors hold 31.95 percent stake in the company. Ace investor Ashish Kacholia holds 5.78 percent stake in Beta Drugs.

Written by – Siddesh S Raskar

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