Content

  1. 1Arch Pharmalabs Essentials
    1. 1.1 Arch Pharmalabs ISIN
    2. 1.2 Arch Pharmalabs Face Value
    3. 1.3 Arch Pharmalabs Total Share
    4. 1.4 Arch Pharmalabs Total Income
    5. 1.5 Arch Pharmalabs Profit After Tax
    6. 1.6 Arch Pharmalabs Promoter Holding
    7. 1.7 Arch Pharmalabs EPS
    8. 1.8 Arch Pharmalabs P/E
    9. 1.9 Arch Pharmalabs P/B
    10. 2.0 Arch Pharmalabs Market Capitalisation
    11. 2.1 Arch Pharmalabs Enterprise Value
    12. 2.2 Arch Pharmalabs Book Value
    13. 2.3 Arch Pharmalabs Intrinsic Value
    14. 2.4 Arch Pharmalabs Earnings Yield
    15. 2.5 Arch Pharmalabs Dividend Yield
    16. 2.6 Arch Pharmalabs Sector
    17. 2.7 Arch Pharmalabs Sub-sector
    18. 2.8 Arch Pharmalabs Category
    19. 2.9 Arch Pharmalabs Cashflow - Operations
    20. 3.0 Arch Pharmalabs Cashflow - Financing
  2. 2Arch Pharmalabs Growth
    1. 2.1 Arch Pharmalabs Compounded Sales Growth
    2. 2.2 Arch Pharmalabs Compounded Profit Growth
    3. 2.3 Arch Pharmalabs Return On Equity
  3. 3 About Arch Pharmalabs
  4. 4 Arch Pharmalabs IPO Details
  5. 5 Arch Pharmalabs Funding
  6. 6 Arch Pharmalabs Merger & Acquisition
    1. 6.1 Arch Pharmalabs Merger
    2. 6.2 Arch Pharmalabs Acquisition
    3. 6.3 Arch Pharmalabs Investments
  7. 7 Arch Pharmalabs Subsidiaries
  8. 8 Arch Pharmalabs Business Model
  9. 9 Arch Pharmalabs Revenue Segmentation
  10. 10 Arch Pharmalabs Product & Services
  11. 11 Arch Pharmalabs Assets
  12. 12 Arch Pharmalabs Industry Overview
    1. 12.1 Arch Pharmalabs Industry Statistics
    2. 12.2 Arch Pharmalabs Future Prospects
    3. 12.3 Arch Pharmalabs Government Initiatives
  13. 13 Arch Pharmalabs Awards & Achievements
  14. 14 Arch Pharmalabs SWOT
    1. 14.1 Arch Pharmalabs Strengths
    2. 14.2 Arch Pharmalabs Shortcomings
    3. 14.3 Arch Pharmalabs Opportunities
    4. 14.4 Arch Pharmalabs Government Threats
  15. 15 Arch Pharmalabs Rating
  16. 16 Arch Pharmalabs Detail Info

Arch Pharmalabs Essentials

If you are going to buy sell & invest in Arch Pharmalabs Unlisted Shares and need to know everything about company including net profit growth, profit & loss, peers, latest news, Arch Pharmalabs Revenue Growth, then you should always read latest research report which is already given on website.

ISIN

INE182F01017

Face Value

₹10.00

Total Share

15,19,23,076

Total Income

₹798.58 Cr

Profit After Tax

₹1,869.44 Cr

EPS

₹123.05

P/E

0.89

P/B

-2.42

Market Capitalisation

₹1,655.96 Cr

Enterprise Value

₹2,874.12 Cr

Book Value

-₹45.12

Intrinsic Value

₹185.00

Earnings Yield

112.89 %

Sector

Health Care

Sub-sector

Pharmaceuticals

Category

Delisted

Cashflow - Operations

₹278.33 Cr

Cashflow - Financing

-₹269.93 Cr

Arch Pharmalabs Growth

Compounded Sales Growth

  • 11.66%

    1 Year

  • 21.71%

    2 Year

  • 41.88%

    3 Year

Pro Only

Compounded Profit Growth

  • 1072.06%

    1 Year

  • 277.28%

    2 Year

  • 212.71%

    3 Year

Pro Only

Return On Equity

  • -272.73%

    2021

  • 10.59%

    2020

  • 9.99%

    2019

Pro Only

About Arch Pharmalabs

  • Arch Pharmalabs Limited, a pharmaceutical company, manufactures and sells active pharmaceutical ingredients (APIs) and intermediates in India and internationally. The company offers APIs across various therapeutic segments, such as lipid lowering agents, oncology, anti-platelet agents, anti-asthmatic, anti-retroviral, anti-anginal, calcium channel blockers, anti-hypertensive, anti-histamine, anti diabetic, anti protozoal, anti fungal, anti emetic, proton pump inhibitors, expectorant, anti depressant, decongestant, anti convulsant, psychostimulant, hypnotic, anti parkinsonian, anti gout, analgesic, and others. It also provides contract manufacturing, custom synthesis, and contract research services comprising route selection, process development, optimization, analytical development, stability studies, safety studies, scale-up to technology transfer, clinical-trial manufacturing, and commercial manufacturers
  • The company has API manufacturing facilities in Gurgaon ( Vitalife Site), Tarapur ( Oncology Site), and New Mumbai ( Dombivli Site) along with these the company also has Intermediate manufacturing facilities in Hyderabad (Merven Site & Watsol Site) and near Mumbai ( Badlapur Site & Taloja Site). Along with all this, the company has also started Contract Research and Manufacturing Services (CRAMS) to grow business vertical
  •  The company was established on 2nd April 1993 and currently has more than 590 employees.

  • Arch Pharmalabs IPO Details

Archpharma Labs had filed its draft red herring prospectus with the Securities and Exchange Board of India in 2011 to raise finance through an initial public offering (IPO). The Archpharma IPO consists of a Fresh Issue of Rs 135 crore and an Offer for Sale (OFS) of up to 6.17 million equity shares by its investor shareholders and promoter group shareholder.

Arch Pharmalabs
Fresh Issue

₹ 135.00 Cr

Arch Pharmalabs
Total IPO Size

₹ 135.00 Cr

Arch Pharmalabs
Offer for Sale No. of Shares

61,72,607 Cr

  • Arch Pharmalabs Merger & Acquisition

Acquisition

  • On November 22, 2017, Neuland Laboratories Limited (BSE:524558) acquired Arch Pharmalabs Limited's manufacturing facility in Gaddapotharam. JM Financial Asset Reconstruction Company made the purchase through the execution of a sale certificate in accordance with the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
  • On 17th, September 2012 Mitsui & Co, a Japanese diversified trading company, paid Rs. 372 cr. for an additional 25% stake in active pharmaceutical ingredient manufacturer Arch Pharma labs. Mitsui purchased IL&FS Trust Co, IDBI Trusteeship Services, and Rainbow Fund.
  • On 23rd, August 2007 Archpharma Labs acquired Wastol Organics in an all-cash deal for $ 300 million. 
  • Arch Pharmalabs Subsidiaries

Subsidiaries:

  • Arch Life Sciences Limited 
  • Arch Finechemicals Limited 
  • Arch Pharmalabs FZ LLC 
  • Vitalife Pharma Ltd


Associate:

  • Kobo Biotech Limited 

Arch Pharmalabs Business Model

  • Arch Pharmalabs: Arch Pharmalabs Ltd is in the business of API and Intermediates manufacturing with 8 manufacturing facilities across India. All these 8 manufacturing facilities are multipurpose with reactor capacities of around 1200 KL. The company is also in the business of  CRAMS through strategic alliances and co-marketing agreements
  • Kobo Biotech Limited: The production of Active Pharmaceutical Ingredients (API) using fermentation technology is the focus of Kobo Biotech Limited. In Solapur, Maharashtra, they have a manufacturing factory.



  • Arch Pharmalabs Revenue Segmentation

  • API/Intermediate
  • Other Sale of products
  • Other Non Operating Income
  • Interest Income on others
  • Arch Pharmalabs Product & Services

The company provides the following services :

  • API Manufacturing
  • Intermediate Manufacturing
  • Contract Services 
  • Arch Pharmalabs Assets

As of 31st March, 2021 company's fixed assets are bifurcated as follows:


Tangible Assets (in Crores)


Land Freehold199.48
Land Leasehold 42.04
Buildings184.57
Plant & Machinery 483.88
Electrical Installation10.95
Computers0.50
Furniture & Fixtures 0.47
Office Equipment 1.47
Vechiles 0.13

Intangible Assets(in Crores)


Computer Software 0.54           
Technology Transfer 1.55
Product Development Expenses0.86


  • Arch Pharmalabs Industry Overview

Industry Statistics

Introduction:

  • The pharmaceutical industry researches, develops, manufactures, and distributes pharmaceutical drugs for use as medicines to patients (or self-given), aiming to cure, immunize, or relieve their symptoms. As of FY21, generic drugs denote 75.5 % of the overall sales of the pharmaceutical sector followed by OTC medicines contributing 15.6 % and patented drugs tallying up to 8.9%. It engages in technological advancements to meet the complex healthcare demands of the population, which plays a significant role in developing vaccines and medications for the treatment of ailments, prevention, reduction of disease incidence, and enhancement of quality of life. 
  • According to Care Edge, in terms of volume and value, the Indian pharmaceutical industry (IPI) is ranked 3rd and 14th, respectively. The dominance of IPI in generic drugs, which command lower pricing and contribute to around 70% of the industry's sales, can be blamed for the lower market share in terms of value. The IPI is mainly segregated into four Formulations, API/Bulk drugs, Biosimilars, and CRAMS. 


Market:

  • According to Fitch Solutions, the pharmaceuticals market is valued at Rs. 2421.7 billion in FY21 compared to Rs. 2123.4 billion in FY20, showcasing a growth of 14% year-on-year (y-o-y). The key drivers behind the change are an increase in the market value, low cost of production, patent cliff, increase in per capita income, the transition of disease profile, an increase in the health insurance market, and abating of regulatory risks 
  • The achievement of Good Manufacturing Practice (GMP) accreditation will help the company's trade network grow and enable shipments to developed market regions. Along with this, the healthcare industry is still growing, and people are becoming more cost-conscious, leading to this exponential performance.


Key Trends:

  • The key trends in the pharmaceutical industry include Artificial intelligence, Blockchain, Patient-centric care, and Big data analytics. Big companies are using these to make the healthcare segment more advance and efficient.
  • Few negative trends in the sector are increased input cost due to the rise of import duties on Chinese products which leads to a rise in the input cost India meets its 69% demand by the imports of Chinese API/bulk drugs. This is followed by price control by government authorities to make the drug more affordable as well as relatively low Research & Development (R&D) investments because according to Care Edge the top 5 pharmaceutical companies of India only allocated 7.1% to 7.9% for their R&D CAPEX.


Major Player:

  •  Major listed players in these sectors are Sun Pharmaceutical Ltd, Cipla Ltd, Abbott India Ltd, Alkem Laboratories Ltd, and Torrent Pharmaceuticals Ltd.


Listed Peers:

  • The listed peers of Arch Pharma Labs ltd, as per its market capitalization and portfolio sizes, are Neuland Laboratories Ltd, Solara Active Pharma Sciences Ltd, and Unichem Laboratories Ltd  

Future Prospects

  • According to Fitch solutions, the Indian pharmaceutical industry is expected to reach Rs. 3830.2 billion FY25, expanding at a compound annual growth rate (CAGR) of  12.5% during the 2021-2025 period. Medicine sales would see a 10-year CAGR of 11.7% over the extended forecast period. The key drivers for the growth are the large and growing population, improved access to healthcare and the rising burden of chronic diseases. 
  • Given that India provides around 10% of global pharmaceutical production volumes and has a market share of about 2.4 percent in terms of value, the Indian pharmaceutical industry enjoys a dominant position in terms of production volumes. India's superior position is primarily due to its lower cost of production and its skilled people resources in science and technology. India has some of the lowest medicine prices in the entire globe.
  • A total of USD 240 billion worth of patented goods are anticipated to lose their patent protection during the following 5–6 years, until 2026. This offers Indian generic formulation businesses a significant potential. Due to patent expiration in the following 4-5 years, Indian pharmaceutical businesses are anticipated to receive an opportunity worth approximately USD 5–6 billion.

Government Initiatives

  • The National Regulatory Authority (NRA) of India is DSCO, which is a part of the Directorate General of Health Services under the Ministry of Health & Family Welfare of the Government of India. Its headquarters are in New Delhi, and it also has offices all over the country, including six zonal offices, four sub-zonal offices, thirteen port offices, and seven laboratories.
  • The Union Cabinet adopted plans for the pharmaceutical industry on March 21, 2020, taking into account the scenario and India's dependence on China for KSM and API. The "Promotion of Bulk Drug Parks" program will spend Rs. 3,000 cr. over the course of five years, from FY21 to FY25, to finance common infrastructure facilities in three bulk drug parks.
  • On January 3, 2021, the Indian government approved Covishield by Serum Institute of India (SII), Covaxin by AstraZeneca, and Covaxin by Bharat Biotech for restricted usage in emergency situations to support the immunization campaign in India. The government of India started a vaccination campaign on January 16, 2021, with the goal of immunizing 30 crore people by July or August of that same year.
  • The PM Ayushman Bharat Health Infrastructure Mission (PMABHIM), with a budget of Rs. 640 billion, was introduced by Prime Minister Narendra Modi in his parliamentary district of Varanasi in October 2021 to boost the nation's healthcare capacities significantly.
  • It was revealed in October 2021 that the Active Pharmaceutical Ingredient (API) sector is the focus of mergers and acquisitions because of the "Atmanirbhar" drive and increased demand for pharmaceutical raw materials made in India rather than China (M&A). The Indian API sector is appealing to investors from India and around the world because of its favorable valuations, promising future, and accredited plants.
  • Under Union budget 2020-21, allocation to the Ministry of Health and Family Welfare stands at Rs. 65,012 crores, whereas Rs. 6,429 crores have been allocated to the health insurance scheme Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (ABPMJAY).
  • 53 key KSMs, drug intermediates, and APIs have been recognized as needing domestic production through the Production Linked Incentive (PLI) Scheme, with a potential cost of Rs. 6,940 crores. The program will run from FY 2020–21 to FY 2029–30.

Arch Pharmalabs Strengths

  • Revenue from operations has increased from Rs 247.19 cr. in 2018 to Rs 798.58 cr. in 2020, showcasing a growth of 59.9% which is higher than the industry average 
  • The company has 8 manufacturing facilities that are multipurpose with reactor capacities of around 1200 KL.

Arch Pharmalabs Shortcomings

  • Company is not able to make profits from last 3 years due to high cost of materials consumed despite of increasing income of last 3 years.
  • The company's assets are decreasing over the past 3 years, which shows the inefficiency of the management.
  • The company's debt has been a major concern as they are not even able to generate profit to pay off their interest cost, which is visible by a negative interest coverage ratio for FY21.

Arch Pharmalabs Opportunities

  • The Indian Government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health programs, lifesaving drugs, and preventive vaccines also augurs well for the pharmaceutical companies.
  • Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as cardiovascular, anti-diabetes, anti-depressants, and anti-cancers, which are on the rise, so as the company is in contract manufacturing and CRAMS they can focus on the respective segment to increase their source of revenue.

Arch Pharmalabs Threats

  • Active Pharmaceutical Ingredients (APIs), or bulk drugs, are raw materials used in the manufacture of medicines or formulations. China was one of the leading countries to produce and sell APIs to the rest of the world until recently. However, with the outbreak of COVID-19 and its origin traced to China, the production of APIs took a hit. This may affect the price and sale of medicines in countries to which Beijing exports the important ingredients.
  • Moreover, the impact is set to be grave, as most of those materials are largely manufactured in the Hubei province. Its capital, Wuhan has been reported as the initial epicenter of the COVID-19 outbreak, and neighboring areas of Zhejiang and Jiangsu are the other two major Chinese centers of medicinal raw material production.
  • Threats include several factors, such as new generic products that arrive in the market, new regulations, new trade barriers, changes to health insurance regulations, and even the lack of availability of qualified staff.
Arch Pharmalabs Rating

  • RECOMMENDATION

    Buy

  • Arch Pharmalabs Detail Info

Industry Statistics

PRIVATE LIMITED

Registered In

India

last Updated

24/08/2022

Registered Date

27/08/1992

Planify Ticker

APLABS

Reg Office: 3rd Floor, Titanic Building, Chandivali Farm Road, Nr. HDFC Bank, Andheri (East) Mumbai - 400072

Visit Website