This article can explore the possibility of Everest Organics Limited as a Multibagger 2021 Stock based on Value Investing principles. Everest Organics Ltd is involved in the market of production of Active Pharmaceutical Ingredients & Intermediaries.
| Website | http://www.everestorganicsltd.com/ |
| CMP | 232.00 INR |
About Everest Organics Limited
EVEREST ORGANICS LIMITED was incorporated in 1993 to move on to the business of production of bulk drugs. Omeprazole, Ciprofloxacin, Dichloroflurobenzene, Benzimadizole, etc .Their factory was at Sadasivpet Medak District Hyderabad. The development activities have begun in the year 1994 and the industrial manufacturing of the company has started in 1996. During the Year 1995, the company went public.
Everest Organics Ltd is directed by Dr S.K. Srihari Raju, who is an NRI and also a Doctor who practising medicine. He contributes his deep and diverse experience of higher than 25 years in the profession of Medical Science to create Merchandises and heightens marketability by concentrating on Therapeutic areas which are of decisive significance and development. This is how the company manufactures its good and got a good market share for its products.
The activities of the Company are executed by a team of professionals with expertise in the areas of production, planning, inventory, and quality control. This team of Everest Organics Limited professionals brings in their experience and expertise developed in the pharmaceutical industry.
Everest Organics Ltd is established in Hyderabad, Telangana, India and is part of the Pharmaceutical production Enterprise. The business has 413 total employees over all of its facility and makes $22.03 million in revenue (USD). There are 6 companies in the Everest Organics Ltd corporate subdivision.
About Product Brands
Everest Organics Limited’s Company has a cumulative space of 32 acres with 23 acres of the green region and 9 acres hidden beneath buildings and roads. An extensive estate of this company is throughout plants. There is total of 2000 plants and 2036 trees in Everest Organics Limited factory area. These trees and plants include different kinds like Subabul, Neem, Gulmohar, etc., which is attractive lawns within the buildings that give a pleasing sense for the unit that relieves the pressure of the workers of this Facility.
Everest Organics Ltd commodities have been well received in the Overseas Market. They also present satisfactory technical and documentary assistance for their merchandises. Everest Organics Limited’s products comply with numerous pharmacopeial standards like BP, USP, EP and IP Standards as craved by the consumer.
The company’s Research and Development Centre is state of art scientific, quality check and fully-equipped lab with well-qualified experts in a separate facility. The centre will quicken the growth of the company’s portfolio of innovative technologies and results that overcome the deficiency in intermediates, process requests and will contribute hands-on support to support them in their drug development.
Some of their products include
API’S
- PANTOPRAZOLE SODIUM SESQUIHYDRATE – USP/BP/EP/IP
- ESOMEPRAZOLE MAGNESIUM TRIHYDRATE – USP/BP/IP/EP
- ESOMEPRAZOLE MAGNESIUM TRIHYDRATE – USP/BP (Non-infringing route )
- OMEPRAZOLE POWDER – USP / BP/ EP/IP
INTERMEDIATES
- 2-MERCAPTO-5-METHOXY BENZIMIDAZOLE (Omeprazole-Benzimidazole)
- 2-chloro-METHYL-3,5-DIMETHYL-4-METHOXY PYRIDINE HCL (Omeprazole Chloro Compound)
- 5-METHOXY-2-[[(3,5-DIMETHYL-4-METHOXY-2-PYRIDINYL)METHL]THIO]-1H BENZIMIDAZOLE (omeprazole sulfide)
Warren Buffet, Value & Growth Checklist
| Capitalization | ₹ 186 Cr. |  |
| Sales Increasing past 3 Year | Yes, 16.1 % |  |
| Profit Increasing past 3 Year | Yes,101 % | |
| Durable Competitive Advantage | Yes | |
| PE Ratio | 12.01 | |
| PB Ratio | 5.62 | |
| Debt Equity Ratio | 0.38 | |
| Intrinsic Value Discount | 83.26 | |
| Promoter Holding & Increase | 0.83% no change | |
| Multibagger Returns | 300-500% 5 Year | |
Business and Industry Analysis
New R&D Facility
Everest Organics Ltd has initiated its new Research and Development facility at its factory Aroor, in Hyderabad. The company’s new R&D centre is a hint of the company’s continued commitment to the API’s business
Following Industry standards and Guidelines
Everest Organics Limited is one of the Primary Producers and Exporters of Active Pharmaceutical Constituents and intermediates in India. This company is an ISO 9001-2008 certified company. Everest Organics Limited’s plants comply with GMP standards and are certified by the Drug Control Authority of the Government of Andhra Pradesh, India.
Maintained Quality and Standard
Everest Organics Ltd also has its own in organisation terms. If needed, they can implement Drug Master Files (DMF) and Common Technical Documents (CTD) for their goods. Everest Organics Limited has also completed a huge degree of purity standards consistently for all their commodities.
Shipping and delivery
Everest Organics Limited standard Packing is in 25kg HDPE Drums, Validity of their offer is regularly one week from the date of transportation. Payment terms are Variable and normal delivery cycles are three to four weeks from the date of receipt of the approved order.
Products under development
Everest Organics Ltd has many products to add to their line up
- SITAGLIPTIN
- VILDAGLIPTIN
- ILAPRAZOLE
- 5-(1-H-PRRROL-1-YL)-1H-BENZIMIDAZOLE-2-THIOL(Ilaprazole Benzimidazole)
- NITRO LANSOPRAZOLE (NON-INFRINGING)
- ESOMEPRAZOLE MAGNESIUM DIHYDRATE
- N-(5-AMINO-2-methyl phenyl)-4-(3-PYRIDYL)-2-PYRIMIDINEAMINE (Imatinib Intermediate)
- LANSO CHLORO COMPOUND
- LANSO SULPHIDE
Positives
- The fundamental strength of the stock is quite good. The company’s EPS (earnings per share), sales return (annual and quarter), background history all are pretty strong.
- The company has an efficient and well-managed board of directors.
- Their innovative strategies are helping to grow the sale return.
- For the quarter ended 30th June 2019, the company has reported Standalone sales of Rs. 41.24 Crore, up 52.50 % from last year same quarter Sales of Rs. 27.05 Crore.
- Improved product profile or client diversity strengthening the business profile
Negatives
Rise of 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.
Everest Organics Ltd – The temporary closure orders of factory situated at sadasivapet, telangana from pollution control board is a concern
SUMMARY
This company can be a 5X Multibagger in the next 5 Years. Please refer to the Summary for Subscription & Updates.