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Hey Guys!
Have you ever watched business show Shark Tank India?
If so, you might be familiar with brilliant and beautiful Namita Thapar who is known for her frequent use of the word ‘expertise.’ Thapar is quite selective when it comes to investing in companies on Shark Tank India. But you might be wondering why we are talking about Namita Thapar instead of Emcure Pharmaceuticals. After all when you invest, you are investing in company not just person. So, let’s get to know this personality who is key pillar behind Emcure Pharmaceuticals.
If you are a regular in stock market you might have heard about Emcure’s IPO and may be you have invested in it, making a profit.
But before we dive into Emcure Pharma’s share analysis, let’s explore some interesting facts about one of the company’s strongest pillars, Namita Thapar.
But do you know Namita Thapar is not founder of this company but still she is in buzz? And The Visionary Founder’s has Silent Strength?
Namita Thapar is more in buzz compared to Satish Mehta lies of nature of their public personas and roles within company. Namita Thapar’s role as an investor on popular television show Shark Tank India has boosted her public profile. Her presence on this show has made her household name, especially among young entrepreneurs and general audience. Namita Thapar maintains an active presence on social media platforms engaging with broad audience through posts, videos and interactive sessions. This keeps her in public eye and allows her to directly connect with her followers.
Ms. Thapar held over 63 lakh shares or 3.5%, of this Pune based pharmaceutical company as of March 2024. With an investment of ₹2.18 crore Namita Thapar acquired Emcure shares at an average price of ₹3.44 per share. She stands to gain remarkable 293 fold return on her initial investment.
In contrast, Satish Mehta’s foundational work and behind the scenes leadership, while equally important, do not attract the same level of public and media attention. Satish Mehta tends to maintain lower profile in the media. Starting the company in 1981 with a with bank loan of ₹3 lakh and now leading it to global recognition involves years of strategic planning, dedication and hard work. His leadership style is more reserved and focused on the internal operations and strategic direction of company rather than public appearances or media engagements.
Exploring the Global Impact of Emcure Pharmaceuticals
Few companies have made as profound an impact on revolutionizing healthcare as Emcure Pharmaceuticals. Emcure Pharmaceuticals is Indian multinational pharmaceutical company based in Pune. It is dedicated to developing, manufacturing and marketing wide range of pharmaceutical products globally.
They produce wide range of tablets, capsules both softgel and hardgel and injectables. Their expertise spans vital therapeutic drugs including cardiovascular, oncology and blood related treatments as well as HIV antivirals, other anti infectives and essential vitamins and minerals. Since its inception in early 80s Emcure Pharmaceuticals has grown to become one of India’s top 13 largest pharma companies.
Emcure Pharmaceuticals Key Highlights:
Brands: Over 350 brands in India.
R&D Centers: 5 research and development centers.
Manufacturing Facilities: 13 facilities across India.
Global Reach: Operations in more than 70 countries.
Workforce: Over 10,000 employees.
Leadership: Satish Ramanlal Mehta is the Managing Director and CEO.
Emcure Pharmaceuticals: Milestones in Innovation and Growth
Emcure Pharmaceuticals has made strides over years, forging important partnerships and expanding its reach globally. Here is a look at some key milestones in their journey:
- 2006:
Emcure entered into license agreements with Bristol Myers Squibb for Atazanavir and with Gilead Sciences for Tenofovir both under their Global Access Programs.
- 2012:
Emcure partnered with Roche to manufacture its blockbuster anticancer drugs, Herceptin and Mabthera in India. This agreement aimed to provide affordable versions of these life saving drugs to developing world.
- 2013:
Emcure branched into health foods sector, teaming up with cricket legend MS Dhoni. As part of this venture Dhoni also became brand ambassador for Emcure, bringing star power and credibility to brand.
- 2014:
Investment firm Blackstone sold its 13% stake in Emcure to Bain Capital marking change in company’s financial landscape.
- 2021:
Emcure underwent a restructuring by separating its U S based operations including its subsidiary Heritage Pharmaceuticals into a new company called Avet Lifesciences.
- 2024:
Emcure launched its initial public offering and got listed on both National Stock Exchange and Bombay Stock Exchange. This milestone marked new chapter in Emcure’s growth opening up new opportunities for expansion and investment.
How Do Emcure Pharmaceuticals Shares Look on the Chart?
The daily performance chart of Emcure Pharmaceuticals shares shows stock’s overall momentum since its listing. Despite strong start, stock hasn’t delivered any returns to its investors. Emcure Pharmaceuticals debuted with 32% premium over its IPO issue price of ₹1,008 opening at ₹1,325.05 on both NSE and BSE. The IPO held from July 3 to July 5, received an overwhelming response with the issue being subscribed 67.87 times. Shares were offered in price bands of ₹960 to ₹1,008 and IPO included fresh share sale of ₹800 crore along with OFS of 1.14 crore shares by promoters and existing shareholders.
As we earlier discussed Namita Thapar well known figure from Shark Tank, made around ₹127 crores through the issue. She holds 63.39 lakh shares in Emcure Pharma, which she acquired at an average price of ₹3.44 per share. She sold about 12.68 lakh shares as part of the Offer for Sale (OFS).
Emcure Pharmaceuticals’ stock reached peak of ₹1,408 on July 15, 2024. Since then, stock has faced selling pressure, dropping to a low of ₹1,235 on August 6, 2024. The stock has been in downtrend on daily chart, consistently making new lows. The level of ₹1,325 is expected to act as resistance and the stock is currently trading below this mark. Investors are advised to hold off on making fresh investments until the stock shows a clearer upward pattern.
Adding to market concerns this week is a new report from Hindenburg Research, known for its 2023 report on the Adani Group. On 10 August 2024 Hindenburg accused SEBI Chairperson Madhabi Puri Buch of having a conflict of interest, alleging that she and her husband, Dhaval Buch had ties to offshore entities involved in the Adani scandal.
Hindenburg claimed these offshore funds, allegedly controlled by Vinod Adani, were used to manipulate stock prices. However, Madhabi Puri Buch and her husband strongly denied these allegations in a joint statement on 11 August 2024. They called the claims baseless and emphasized that their financial records have always been transparent and fully disclosed to SEBI over the years.
Emcure Pharmaceuticals Share Fundamental Analysis
Let’s take a look at some fundamental analysis of Emcure Pharmaceuticals shares.
| Period Ended | Mar 2024 ( ₹ Cr.) | Mar 2023 ( ₹ Cr.) | Mar 2022 ( ₹ Cr.) |
|---|---|---|---|
Revenue | 6,715.2 | 6,031.72 | 5,918.86 |
Financing Profit | 527.58 | 561.85 | 702.56 |
Net Profit | 2,952.28 | 2,501.13 | 1,987.55 |
Total Assets | 7,806.16 | 6,672.53 | 6,063.47 |
- Revenue: Revenue has increased steadily, from ₹5,918.86 crore in 2022 to ₹6,715.24 crore in 2024.
- Financing Profit: This metric saw a decline from ₹702.56 crore in 2022 to ₹527.58 crore in 2024, indicating some challenges in financing operations.
- Net Profit: Emcure’s net profit has grown from ₹1,987.55 crore in 2022 to ₹2,952.28 crore in 2024, showcasing improved profitability.
- Total Assets: Its total assets have increased from ₹6,063.47 crore in 2022 to ₹7,806.16 crore in 2024, reflecting strong asset growth.
Financial Ratios of Emcure Pharmaceuticals Stock
No Data Found
- Return on Equity decreased from 32.98% in March 2022 to 19.35% in March 2024 indicating decreased profitability relative to shareholder’s equity.
- Return on Capital Employed showed a slight downward trend moving from 25.08% in March 2022 to 18.23% in March 2024.
EPS in Rs.(₹)
No Data Found
EPS remained stable between 2023 and 2024, it was lower compared to 2022.
Shareholding Pattern of Emcure Pharmaceuticals Share
Shareholding Pattern (in %)
No Data Found
As of June 2024, the company’s ownership is primarily held by promoters, who control 78.08% of the shares. Foreign Institutional Investors (FIIs) hold 1.75%, Domestic Institutional Investors (DIIs) hold 3.15%, and the remaining 17.01% is owned by the public.
Emcure Pharmaceuticals Vs Peers
| Company Name | MCap(TTM) | PE(TTM) |
|---|---|---|
Emcure Pharmaceuticals Ltd | ₹24,679 Cr | 49.01 |
J B Chemicals & Pharmaceuticals Ltd | ₹29,769 Cr | 55.03 |
Suven Pharmaceuticals Ltd | ₹25,329 Cr | 94.76 |
Natco Pharma Ltd | ₹25,328 Cr | 18.24 |
Piramal Pharma Ltd | ₹23,790 Cr | 0 |
Laurus Labs Ltd | ₹23,283 Cr | 157.04 |
Concord Biotech Ltd | ₹16,497 Cr | 55.43 |
This table gives a sense of the size and valuation of these pharmaceutical companies. Some have very high or low PE ratios, which indicate different levels of profitability or market expectations.
Final Words
Emcure Pharmaceuticals stands as testament to innovation and strategic growth in global pharmaceutical industry. While Namita Thapar’s public persona and investment have brought attention to the company and the foundational work of Satish Mehta has been influential in shaping Emcure’s success. Despite recent stock market challenges Emcure’s strong financials, global reach and diverse product portfolio make it a formidable player in pharmaceutical sector. Investors should carefully monitor market trends and company performance before making investment decisions as Emcure’s potential remains strong despite current market volatility.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
