Started in 1983 when its founder Mr. Ramesh Arora was inspired to begin his own venture leaving behind the already flourishing family business of spinning and aromatics. With little background of finished pharmaceuticals and high held spirits and will, he started this business.
He received his first drug license in 1981 approved for liquid oral manufacturing. Climbing ladder of success, till date, Company has 48 different sections available at their production centres.
In the time span spread over a quarter of the century, the Company has not only established world-class quality standards but also has been able to offer customized products to their vast clientele spread across the globe.
What does the company do?
Kwality Pharmaceuticals Ltd. is a manufacturer of finished pharmaceutical formulations in a dosage form. It is a leading manufacturer & exporters of pharmaceutical formulations in Liquid Orals, Powder for Oral Suspension, Tablets, Capsules, Sterile Powder for Injections, small volume injectables, Ointments, External Preparations, ORS and many more… in various categories like Beta Lactam & non-Beta Lactam, Hormones, Cytotoxic (Oncology) and Effervescent as per new GMP norms.
The company specializes in handling customized business as per the requirements. The company has registered its products in different countries of Europe, Africa, Asia, Central American, and South American Countries & CIS Countries.
Company market capitalization: Rs505 crs
Promoter holds 54.43% stake and has been constantly increasing stake post Sep 2019.
Ashish Kacholia has been increasing stake in the company over last 3 quarters. See below
Performance in 1HFY22
Outlook for 2HFY22
If company repeats 1H performance in 2H as guided we are looking at profits of Rs198crs for the full year. Company’s market cap is Rs505crs which implies the stock is trading at < 3x P/E and looks super cheap and has the potential to be a multi-bagger
Key downside risks
- Information is limited on the company with no research reports
- Stock trades in lot sizes of 200 and is illiquid
- Company could potentially be impacted by rising raw material prices