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Fermenta Biotech Ltd logo

Fermenta Biotech Ltd

NSE: BSE: 506414

336.60

(-0.80%)

Thu, 19 Mar 2026, 00:57 am

Fermenta Biotech Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are thoroughly covered by earnings (76.6x coverage).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Fermenta Biotech's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Fermenta Biotech's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • Fermenta Biotech is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Fermenta Biotech is profitable, therefore cash runway is not a concern.
  • Fermenta Biotech is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (31.4%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 1.5x debt.
  • Fermenta Biotech's cash and other short term assets cover its long term commitments.
  • Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).
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Cons

  • The level of debt compared to net worth has increased over the past 5 years (20.5% vs 69.8% today).
  • Fermenta Biotech's level of debt (69.8%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Fermenta Biotech board of directors is about average.
  • The tenure for the Fermenta Biotech management team is about average.
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Cons

    misc

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    Pros

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      Cons

      • Fermenta Biotech is not covered by any analysts.
      • Fermenta Biotech has significant price volatility in the past 3 months.

      past

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      Pros

      • Fermenta Biotech has delivered over 20% year on year earnings growth in the past 5 years.
      • Fermenta Biotech used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
      • Fermenta Biotech has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
      • Fermenta Biotech has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
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      Cons

      • Fermenta Biotech's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Fermenta Biotech's 1-year earnings growth is negative, it can't be compared to the IN Pharmaceuticals industry average.

      value

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      Pros

      • Fermenta Biotech is good value based on earnings compared to the IN Pharmaceuticals industry average.
      • Fermenta Biotech is good value based on earnings compared to the India market.
      • 506414 outperformed the Market in India which returned -14.5% over the past year.
      • BSE:506414 is up 23.8% outperforming the Pharmaceuticals industry which returned 6.8% over the past month.
      • BSE:506414 is up 23.8% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Fermenta Biotech's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Fermenta Biotech's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Fermenta Biotech is overvalued based on assets compared to the IN Pharmaceuticals industry average.
      • 506414 underperformed the Pharmaceuticals industry which returned 26.7% over the past year.

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