Akums Drugs & Pharmaceuticals Ltd. Fundamental Analysis (NSE: AKUMS.NS)
Akums Drugs & Pharmaceuticals Ltd. Fundamental Analysis (NSE: AKUMS.NS)
Akums Drugs & Pharmaceuticals Ltd. (NSE: AKUMS.NS) shows weak financial fundamentals with a PE ratio of 39.37, profit margin of 6.48%, and ROE of 9.20%. The company generates $45.0B in annual revenue with moderate year-over-year growth of 7.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AKUMS.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakAKUMS.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateAKUMS.NS shows balanced valuation metrics.
Growth Score
ModerateAKUMS.NS shows steady but slowing expansion.
Financial Health Score
ExcellentAKUMS.NS maintains a strong and stable balance sheet.
Profitability Score
WeakAKUMS.NS struggles to sustain strong margins.
Key Financial Metrics
Is AKUMS.NS Expensive or Cheap?
P/E Ratio
AKUMS.NS trades at 39.37 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AKUMS.NS's PEG of -2.54 indicates potential undervaluation.
Price to Book
The market values Akums Drugs & Pharmaceuticals Ltd. at 3.47 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.12 times EBITDA. This signals the market has high growth expectations.
How Well Does AKUMS.NS Make Money?
Net Profit Margin
For every $100 in sales, Akums Drugs & Pharmaceuticals Ltd. keeps $6.48 as profit after all expenses.
Operating Margin
Core operations generate 9.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.20 in profit for every $100 of shareholder equity.
ROA
Akums Drugs & Pharmaceuticals Ltd. generates $5.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Akums Drugs & Pharmaceuticals Ltd. generates strong operating cash flow of $15.47B, reflecting robust business health.
Free Cash Flow
Akums Drugs & Pharmaceuticals Ltd. generates strong free cash flow of $13.13B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $85.73 in free cash annually.
FCF Yield
AKUMS.NS converts 11.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How AKUMS.NS Stacks Against Its Sector Peers
| Metric | AKUMS.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.37 | 30.97 | Worse (Expensive) |
| ROE | 9.20% | 515.00% | Weak |
| Net Margin | 6.48% | 30197.00% | Weak |
| Debt/Equity | 0.05 | 0.53 | Strong (Low Leverage) |
| Current Ratio | 3.25 | 5.71 | Strong Liquidity |
| ROA | 5.36% | -16.00% (disorted) | Weak |
AKUMS.NS outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Akums Drugs & Pharmaceuticals Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.90%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
203.90%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
3807.93%
Industry Style: Defensive, Growth, Innovation
High Growth