Bajaj Healthcare Limited Multibagger Analysis 2021
In this article, we can explore the possibility of Bajaj Healthcare Ltd as a Multibagger 2021 Stock based on Value Investing principles. Bajaj Healthcare Limited is an India-based pharmaceutical company. The Company is engaged in the production of bulk drugs and pharmaceutical products.
About Bajaj Healthcare Ltd Multibagger
Bajaj Healthcare Ltd. is a company that produces a bulk quantity of drugs. It was founded in 1993, serving various Pharmaceuticals, Nutraceuticals and Food industries globally with a spirit of scrupulousness.
Bajaj Healthcare Ltd. has transformed itself into a Specialty Company and focusing on the development, production and supply of Amino Acids, Nutritional Supplements and Active Pharmaceutical Ingredients (API) for Pharmaceutical purposes, Nutraceuticals and Food industries.
The company began its operations in 1993 with only a single unit located at Tarapur. Bajaj Healthcare became a public company in 2005 and listed its shares in the Indian stock exchanges in 2016. The Headquartered located in Thane, Bajaj Healthcare Ltd is equipped with advanced production facilities in the state of Maharashtra and Gujarat.
About Product Brands
Bajaj Healthcare Limited produces and markets…
- Active Pharmaceutical Ingredients (APIs)
- Intermediates and Finished Dosage Formulations (FDFs) with a focus on Vitamins
- Amino Acids
- Anti-Convulsants and other Finished Dosage Forms (FDFs) catering to various therapeutic segments.
The Company’s product portfolio also consists of various types of APIs, which are used for varied purposes and types of formulations including Psychoactive Drugs, Anti-Asthmatic/Broncodilater drugs, Neutraceutical (Amino Acids), Antacids, Venotropic Agent, Minerals and Nutritional supplements, Bactericidal/Bacteriostatic, etc.
The FDFs manufactured by the company include various therapeutic segments like Antibiotics, Anti-Arrhythmia, Anti-Convulsants, Anti-Diabetes, Anti-Platelets, NSAIDs, Vitamins & its Derivatives, Anti-Hypertensive, Anti-Bacterial, Anti-Malarial, Cholinesterase Inhibitors, etc. Bajaj Healthcare Ltd is a multi-product API &FDF production company with a large product lineup including Carbamazepine, OxcarbazepineL-Lysine Mono
Bajaj Healthcare Ltd products enjoy great attention in the overseas market due to the high class and cost-effective pricing and consistent shipments. They present every customer with a product and service factoring in the best mix of performance and worth.
Warren Buffet, Value & Growth Checklist
|Capitalization||₹ 652 Cr|
|Sales Increasing past 3 Year||Yes, 21.1 %|
|Profit Increasing past 3 Year||Yes,42.0 %|
|Durable Competitive Advantage||Yes|
|Debt Equity Ratio||0.52|
|Intrinsic Value Discount||96.13|
|Promoter Holding & Increase||67.3 % no change|
|Multibagger Returns||300-500% 5 Year|
Business and Industry Analysis
4 Large units for APIs and 1 for formulation: The business consists of four units for APIs or intermediates and a unit is reserved for Formulation. They are designed to satisfy the requirement of advanced and emerging.
Good Marketing Setup and Global Customers: Using their expanding business reach, over the years they have maintained a reliable customer relation and a solid marketing setup. This is monitored and controlled by their Marketing Head and Directors. Bajaj Healthcare in its short time has support from national and international buyers.
The wide lineup of products: The organisation produces and market a variety of APIs & chemicals to the customers for their custom formulation specification.
Strategic Location of Manufacturing Units: The company has 5 manufacturing units for their products which is positioned in the States of Maharashtra and Gujarat, including the registered office in Tarapur and a registered office in Thane, Mumbai.
Consistency in Quality and Service Standards: The business follows rigorous quality standards in all the production units to guarantee that the merchandise meets the essential FDA standards and also the Good Manufacturing Practices (GMP) standards. FDA and GMP are necessary for manufacturing any pharmaceutical product intended for human consumption.
Penetration into international markets including regulated markets: Using the company’s R&D capabilities to develop further into international markets, including regulated markets. Their plan to approach is primarily to become the favoured supplier of APIs to pharmaceutical companies and also market their FDFs. Bajaj Healthcare Ltd has acquired CDSCO approval for the sale of certain products from the Tarapur Unit to the European Countries.
- Increased infiltration into global markets which also includes regulated markets.
- Expanding production scope by adding more goods to the company’s line up.
- Other Growth Driving Factors
- Ageing population: The world’s population ages above 65 will grow faster than any other segment. This can drive the demand for pharmaceutical products.
- Better Healthcare access: Healthcare awareness has gained much acceptance during recent times. following this serval governments have subsidized health protection programs. Rising healthcare awareness means rising demand for pharmaceutical products.
- A growing amount of chronic diseases: Developing nations are suffering from high levels of health dilemmas related to chronic diseases. As per WHO reports, chronic diseases will account for almost three-quarters of all mortality worldwide.
Increasing competition in the industry: The company functions in a very competitive Industry which may require them to decrease the costs of the merchandises and it can have an impact on its margins.
Raw Material expenses are the most generous element of the company’s cost structure: Raw materials are secured from both internal as well as the foreign market at very competitive prices from various suppliers. The rise in expenses of any of the required raw materials can be fatal to the company.
As per the R&D, the company is having Multibagger Potentials. However, this is not a Multibagger Recommendation. You should get paid Subscription to get the Real 500% Multibaggers. 3 Multibaggers immediately after payment.