Hello stockholders...! Today We will discuss a healthcare sector stock JENBURKT PHARMA LTD.@ CMP 342
Stock Data
CMP (Rs) - 342
Face value (Rs) - 10
Face value (Rs) - 10
52 Week Range (Rs) 335 - 68.10
Market cap (Rs Crores) - 159.35
Price To Book Value (x) - 5.80
P/E Ratio (x) - 19.70
Jenburkt has a strong committed team of more than 575 sales force
across
India, Jenburkt promotes all
its 85 brands ethically across 75,000 doctors and 50,000
chemists regularly. Backing
the strong force company has more than 1000 stockists
and 25 superstockists.
Jenburkt also caters to large Government, Semi-Government
Institutions, Missionary
Hospitals, Public Sector Enterprises, etc.
Currently, Jenburkt's products are being exported to 15 countries
globally with
a clear focus to expand on a
yearly basis. Also Jenburkt is open to partnering foreign
pharmaceutical firms to
market their pharmaceutical products in India; Company is
also in search of a capable
partner to market their pharmaceutical products across
the globe through which they
can improve on their exports sales which constitutes
small proportion of total
sales.
Company is focused on strengthening their brands in their respective
segments during
the last year. There is a
growing trend of competition from regional companies who
operate either in a few
districts or in a few states in India. This is apart from
the competition from large
organizations operating in India. Neuropathy detection
camps and bone densitometry
camps were carried out in various parts of the country
for detection of neuropathy
and osteoporosis.. The strategy of Company is to focus
on long term therapies in
acute and chronic ailments, by moving up the value chain
continuously. As a result, a
few of the Company’s brands are the preferred choice
in certain segments. Company
has some strong brand like CARTI SAFE FORTE (Anti Arithritic)
, POWERGESIC Tablets (Anti
Inflammory Analogesic).They rank among the top five in
those segments.
Strengthening the Brand:
Company is focused on strengthening their brands in their respective segments during the last year. There is a growing trend of competition from regional companies who operate either in a few districts or in a few states in India. This is apart from the competition from large organizations operating in India. Neuropathy detection camps and bone densitometry camps were carried out in various parts of the country for detection of neuropathy and osteoporosis.. The strategy of Company is to focus on long term therapies in acute and chronic ailments, by moving up the value chain continuously. As a result, a few of the Company’s brands are the preferred choice in certain segments. Company has some strong brand like CARTI SAFE FORTE (Anti Arithritic) , POWERGESIC Tablets (Anti Inflammory Analogesic).They rank among the top five in those segments.
Quality Portfolio of Products:
Jenburkt has good health through quality products that include prescription and over-the-counter drugs. Their prescription medicines span across various therapeutic areas such as anti-arthritic, antimalarials, anti-osteoporotic, antibiotics, antidiabetics and anti-inflammatory drugs and more. Hence Company has good quality of products in their portfolio.
Strong Manufacturing Facilities:
Company has the state-of-the-art manufacturing plant at Sihor-Gujarat, in India. The plant is modern and well-equipped with spacious operational areas having adequate capacities for manufacturing world-class pharmaceutical and healthcare products. Company’s plant is approved as per W.H.O Guidelines with current G.M.P requirements, apart from approvals from various countries. Furthering the development of formulations, Jenburkt has a Research & Development unit duly approved by the Ministry of Science & Technology, Government of India. Hence company has strong manufacturing facilities to cater both domestic and international market. Also Jenburkt has a progressive lineage of manufacturing high quality formulations backed by a strong Research & Development, Regulatory and global marketing team. The big thrust of Jenburkt's strategy is to focus on creating a new category in the Indian and the International pharmaceutical market vis a vis.
Recent R&D Activities:
Recently company undertook commercial scale manufacturing of Frendacid, an antacid and antiflatulance for export market. Also Company continue to work towards formulating new and existing molecules for domestic and international market for efficient and cost saving drug delivery systems. Hence company is in continuous process of improving on its product portfolio.
Strong Financials:
Last year company posted strong gross profit margins of above 67%, EBITDA margin above 15%, PAT margins near 10% which are excellent numbers for mid cap pharma companies. With no further capex required in next few years company can post 200 crore of sales in next three years. Also employee cost which is 23% of total sales as on date is expected to reduce going forward as recent capex will take place for execution hence margins will be increased gradually in next few years. Company also pays regular dividend every year which help them to maintain strong dividend yield of above 4%. Company is debt free company with 16.75 crores of cash in hand.
Company is focused on strengthening their brands in their respective segments during the last year. There is a growing trend of competition from regional companies who operate either in a few districts or in a few states in India. This is apart from the competition from large organizations operating in India. Neuropathy detection camps and bone densitometry camps were carried out in various parts of the country for detection of neuropathy and osteoporosis.. The strategy of Company is to focus on long term therapies in acute and chronic ailments, by moving up the value chain continuously. As a result, a few of the Company’s brands are the preferred choice in certain segments. Company has some strong brand like CARTI SAFE FORTE (Anti Arithritic) , POWERGESIC Tablets (Anti Inflammory Analogesic).They rank among the top five in those segments.
Quality Portfolio of Products:
Jenburkt has good health through quality products that include prescription and over-the-counter drugs. Their prescription medicines span across various therapeutic areas such as anti-arthritic, antimalarials, anti-osteoporotic, antibiotics, antidiabetics and anti-inflammatory drugs and more. Hence Company has good quality of products in their portfolio.
Strong Manufacturing Facilities:
Company has the state-of-the-art manufacturing plant at Sihor-Gujarat, in India. The plant is modern and well-equipped with spacious operational areas having adequate capacities for manufacturing world-class pharmaceutical and healthcare products. Company’s plant is approved as per W.H.O Guidelines with current G.M.P requirements, apart from approvals from various countries. Furthering the development of formulations, Jenburkt has a Research & Development unit duly approved by the Ministry of Science & Technology, Government of India. Hence company has strong manufacturing facilities to cater both domestic and international market. Also Jenburkt has a progressive lineage of manufacturing high quality formulations backed by a strong Research & Development, Regulatory and global marketing team. The big thrust of Jenburkt's strategy is to focus on creating a new category in the Indian and the International pharmaceutical market vis a vis.
Recent R&D Activities:
Recently company undertook commercial scale manufacturing of Frendacid, an antacid and antiflatulance for export market. Also Company continue to work towards formulating new and existing molecules for domestic and international market for efficient and cost saving drug delivery systems. Hence company is in continuous process of improving on its product portfolio.
Strong Financials:
Last year company posted strong gross profit margins of above 67%, EBITDA margin above 15%, PAT margins near 10% which are excellent numbers for mid cap pharma companies. With no further capex required in next few years company can post 200 crore of sales in next three years. Also employee cost which is 23% of total sales as on date is expected to reduce going forward as recent capex will take place for execution hence margins will be increased gradually in next few years. Company also pays regular dividend every year which help them to maintain strong dividend yield of above 4%. Company is debt free company with 16.75 crores of cash in hand.
So this stock is recommended buy at these trading levels.
