RATING

RECOMMENDATION

Strong Buy

  • Martin and Harris Laboratories
  • ₹1,945.00

  • PLACE ORDER
  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Strong Buy

Business Type

Emerging Leader

RATING

RECOMMENDATION

Strong Buy

Business Type

Emerging Leader

Discover and get a complete analysis on Martin & Harris Laboratories Limited - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News and get latest updates on Martin and Harris Upcoming IPO.

ISIN

INE03VV01015

Face Value

₹10.00

Total Share

39,96,040

Total Income

₹335.62 Crores

Profit After Tax

₹176.87 Crores

EPS

₹442.60

P/E

4.39

P/B

2.17

Market Capitalisation

₹777.23 Cr

Enterprise Value

₹680.15 Cr

Book Value

₹894.30

Intrinsic Value

₹1,702.07

Dividend Yield

0.17 %

Earnings Yield

22.76 %

Sector

Health Care

Sub-sector

labs & Life Science Services

Category

Small Cap

Cashflow - Operations

-₹170.17 Crores

Cashflow - Financing

-₹9.60 Crores

Martin & Harris Growth

Compounded Sales Growth

  • -37.27%

    1 Year

  • 0.23%

    3 Year

  • 5.67%

    4 Year

Pro Only

Compounded Profit Growth

  • 1289.73%

    1 Year

  • 56.25%

    2 Year

  • 57.23%

    4 Year

Pro Only

Return On Equity

  • 49.50%

    2021

  • 32.92%

    2019

  • 38.97%

    2018

Pro Only

About Martin & Harris

  • The "Apeejay Group," one of India's oldest and most prominent business conglomerates, owns Martin & Harris Laboratories Ltd, a company founded in Gurgaon, Haryana, in 1996.
  • Pharmaceutical, medical, chemical, and botanical product manufacture are the main activities of Martin & Harris Laboratories Ltd.
  •  It offers bactericidal antibiotics, treatments for Parkinson's disease, vaginal infections, antispasmodics, progestin-only medications, vitamin medications, anabolic steroids, hormonal medicines, and ovulatory stimulants, among other things.
  • The company has extensive manufacturing plants in Roorkee and Gagreth, which produce medicines for contract manufacturing. The company manufactures drugs named Drotin, Bilalife, Uriliser, Microgest, Ovagen, Uripas, Amclox, Venusmin, etc. 
  • In addition to its primary pharmaceutical business, it manages its money by investing in various opportunities that yield strong returns, such as mutual funds, listed and unlisted stocks, etc. They have a company called Delite Infrastructure Limited that handles this operation.

  • Martin & Harris IPO Details

The company has not filed for DRHP as of now

  • Martin & Harris Subsidiaries

  • Delite Infrastructure Private Limited

Martin & Harris Business Model

  • Martin & Harris Laboratories Ltd is engaged in manufacturing pharmaceutical, medicinal chemical & botanical products. Besides the core business, it has undertaken the management of its funds through investment in different avenues fetching good returns, i.e., mutual funds, equity –quoted & unquoted, etc.
  • Martin & Harris Revenue Segmentation

  • Other income
  • Futures and Options(Derivatives)
  • Pharmaceuticals manufacturing
  • Martin & Harris Product & Services

Few medicines manufactured by them are:

  • Venusmin
  • Tamsin
  • Drotin Plus
  • TSmartilon 20 
  • Amcfox
  • Fotigest
  • Martin & Harris Assets

Assets of the company as on 31st, March 2021.

ParticularsAmount in Rs. Crores
Land1.69
Vehicles0.65
Building1.05
Plant and Equipment8.57
Furniture and Fixtures0.86
Computer0.11
Office Equipment0.11
Leasehold Improvement0.35


  • Martin & Harris Industry Overview

Industry Statistics

Introduction:

  • The pharmaceutical industry researches, develops, manufactures, and distributes pharmaceutical drugs for use as medicines to be given to patients (or self-given), aiming to cure them, immunize them, or relieve their symptoms. The industry is bifurcated into five domains Prescription, Patented, Generic, Over-the-counter, and Biosimilar drugs. 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.
  • Businesses are researching to identify drugs that enhance life quality and experience. Pharmaceutical businesses are now reviewing their research and development processes to ensure the procedures are honed and targeted.

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 Martin and Harris Labortiers Ltd, as per its market capitalization and portfolio sizes, are Korpan Ltd, Themis Medicare Ltd, and SMS Pharmaceuticals 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.

Martin & Harris Awards & Achievements

Martin and Harris Laboratories Limited,was awarded with "Pharma Excellence Awards-2018" by apex industry chamber ASSOCHAM for best innovation in process & formulation development.

Martin & Harris Strengths

  • The company's manufactured drugs named Drotin Plus, Amclox, Venusmin, and Tamsin are always in huge demand and market leaders in their segments.
  • The company's pharma business has generated a ROCE of 17% and the investment business has generated a ROCE of 40%.
  • The company has healthy cash and cash equivalents in its balance sheet which shows the strong solvency of the company

Martin & Harris Shortcomings

  • Due to its reliance on imported active medicinal components, the company is always susceptible to changes in exchange rates.
  • The drugs manufactured by Martin & Harris are priced over the average market price and a significant portion of the population has low purchasing power , which makes it difficult for the company to cater the rural demand which is a major segment in Indian market.

Martin & Harris Opportunities

  •  In 2020, government spending on healthcare totaled Rs. 2,289 billion, or 26.9% of all health expenditures. It is anticipated that by 2025, public healthcare spending will amount to Rs. 4,190 billion.
  • Increasing cases of COVID-19 infected patients across the globe has led to a rise in clinical chemistry services, especially in the specialized chemistry testing segment. Laboratory testing and pharma demands have increased significantly and continue to grow at a staggering rate to keep pace with suspected cases of COVID-19, thus boosting the market revenue.
  • India is a global leader in producing high-quality generic drugs and is progressively realizing its potential to build a robust, research-based pharmaceutical sector to create cutting-edge drugs.
  • India's pharmaceutical industry will continue to be a top location for foreign direct investment. Pharmaceutical companies will expand their production operations there to support the country's push to promote the biomedical industry.

Martin & Harris Threats

  • Threats include several factors, such as new generic products that arrive in the market, new regulations, new trade barriers, changes to health insurance regulation, and even the lack of availability of qualified staff.
  • Government resistance to properly integrating patent law with international norms could halt the growth of the multinational industry.
  • The National Health Insurance Scheme's (NHIS) services and medications are under further pressure to reduce costs.
Martin & Harris Rating

  • RECOMMENDATION

    Strong Buy

  • Martin & Harris Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

last Updated

16/08/2022

Registered Date

22/07/1993

Planify Ticker

M&H

Reg Office: NH-8, Delhi Jaipur Highway, Village, Pachgaon (Fazalwas), Distt. Gurgaon, Haryana

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This new SEBI rule was introduced in the month of August-2021, wherein the SEBI has reduced the lock-in period previously from 1 year to 6 months to encourage more and more funds to be invested in startups which are going to public or IPO in near future. Reduction of lock-in is seen as big step and after that many PMS funds are advising their clients to invest in Pre-IPO shares to get the benefit of early stage investment.

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We at Planify do the valuation based on 2 methods.
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