Procter & Gamble Health Ltd

Merck Limited is engaged in manufacturing and marketing of pharmaceuticals, bulk drugs, fine chemicals and pigments.

Pros:
Company is virtually debt free.
Stock is providing a good dividend yield of 10.02%.
Company has good consistent profit growth of 71.59% over 5 years
Company has a good return on equity (ROE) track record: 3 Years ROE 40.36%
Company has been maintaining a healthy dividend payout of 45.56%
Debtor days have improved from 43.98 to 28.45 days
Cons:
Stock is trading at 9.80 times its book value
The company has delivered a poor growth of 1.25% over past five years.
Tax rate seems low
Earnings include an other income of Rs.761.47 Cr.
** Remarks:
Some businesses are provided tax benefits to encourage their development

Peer Comparison Sector: Pharmaceuticals // Industry: Pharmaceuticals - Multinational

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Quarterly Results Figures in Rs. Crores

Sep 2016 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017 Mar 2018 Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019
269 250 229 165 206 179 198 220 226 204 231 234
223 226 206 150 169 174 174 169 168 189 181 179
Operating Profit 47 24 23 15 37 4 24 51 58 15 50 55
OPM % 17% 10% 10% 9% 18% 2% 12% 23% 26% 8% 22% 23%
Other Income 4 8 7 13 16 38 20 21 17 709 18 17
Interest 0 0 0 0 0 0 0 0 0 0 0 0
Depreciation 6 6 6 5 5 5 7 5 4 5 4 5
Profit before tax 44 26 23 23 48 37 37 67 71 720 63 67
Tax % 36% 25% 36% 13% 34% 26% 38% 28% 26% 1% 36% 35%
Net Profit 28 19 15 20 32 27 23 48 52 715 41 44
EPS in Rs 17.17 11.71 8.93 12.12 19.09 16.43 13.68 29.10 31.53 430.94 24.52 26.56
Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes

Profit & Loss Figures in Rs. Crores

Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 TTM
313 387 473 509 590 687 798 867 940 993 698 849 895
246 338 412 450 503 582 721 809 855 877 621 701 717
Operating Profit 67 50 61 60 87 106 77 59 85 116 77 148 178
OPM % 21% 13% 13% 12% 15% 15% 10% 7% 9% 12% 11% 17% 20%
Other Income 40 48 43 43 17 20 21 20 22 24 74 768 761
Interest 0 0 0 0 0 0 0 0 0 0 0 0 0
Depreciation 7 6 8 7 8 9 10 13 23 25 19 21 18
Profit before tax 100 92 96 96 96 117 88 67 83 115 132 895 922
Tax % 31% 31% 32% 34% 33% 33% 37% 35% 36% 31% 29% 6%
Net Profit 69 63 65 63 64 78 56 43 54 79 94 839 852
EPS in Rs 37.72 34.40 36.05 22.28 38.36 46.83 32.22 24.84 30.74 47.67 56.57 505.25 513.55
Dividend Payout % 49% 47% 51% 250% 0% 5% 25% 23% 23% 23% 27% 87%
* Sales is net of excise duty and discounts
Compounded Sales Growth
10 Years:8.16%
5 Years:1.25%
3 Years:-3.32%
TTM:11.50%
Compounded Profit Growth
10 Years:29.53%
5 Years:71.59%
3 Years:148.36%
TTM:555.84%
Stock Price CAGR
10 Years:21.66%
5 Years:39.71%
3 Years:83.14%
1 Year:48.83%
Return on Equity
10 Years:24.58%
5 Years:30.54%
3 Years:40.36%
Last Year:73.25%

Balance Sheet Figures in Rs. Crores

Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Jun 2019
17 17 17 17 17 17 17 17 17 17 17 17 17
Reserves 406 435 451 330 393 467 506 538 575 647 717 1,524 727
Borrowings 0 0 0 0 0 0 0 0 0 0 0 0 0
68 113 105 85 95 117 132 162 203 215 258 219 229
Total Liabilities 491 564 572 431 505 600 655 716 794 879 991 1,759 973
38 60 63 49 72 75 85 110 132 111 115 104 104
CWIP 2 2 1 2 0 2 9 28 7 30 9 17 14
Investments 234 153 24 20 23 24 24 24 42 28 70 0 0
216 349 485 360 411 500 537 555 613 711 797 1,639 855
Total Assets 491 564 572 431 505 600 655 716 794 879 991 1,759 973

Cash Flows Figures in Rs. Crores

Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018
38 4 42 66 19 54 0 5 83 107 54 -130
21 16 2 176 -9 -82 7 11 -68 -75 -48 1,270
-58 -20 -45 -222 -0 0 -5 -17 -12 -15 -22 -30
Net Cash Flow 2 -0 -2 20 10 -28 3 -1 4 17 -16 1,109

Ratios Figures in Rs. Crores

Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018
ROCE % 24% 21% 21% 24% 25% 26% 18% 12% 15% 18% 16% 78%
Debtor Days 36 42 34 40 38 34 38 44 49 39 64 28
Inventory Turnover 8.65 7.09 7.20 8.51 6.77 5.63 5.64 5.27 5.46 6.00 4.34 6.26