New Delhi India January 15 ANI PNN Martin Harris Laboratories, Apeejay Group's pharmaceutical arm, has announced its results for the financial year ended March 31, 2021, the financial year.
In the financial year 2020 -- 21 Martin Harris Laboratories made a profit after tax PAT of Rs 177 crore, a rise of 138.96 per cent against a net profit of Rs 70 crore in the financial year 2019 -- 20.
In the last seven years, the revenue of the company has increased by 30 per cent and from Rs 67 crore to 336 crore, while PAT's CAGR has increased by 61 per cent to Rs 177 crore.
The total income for FY 2020 -- 21 includes 138 crore from pharma business and 196 crore from investment business. Earnings per share EPS of the company went up to 443 in FY 21 against an EPS of 180 in FY 20.
In FY 21, Delite Infrastructure, a Martin and Harris Laboratory investment arm, generated EBIT of 160 Crores on a capital of 400 Crores, which is a 40 per cent return on capital. Even though the period and portfolio is large, if we compare it to Warren Buffet's investment company, Berkshire Hathaway, the same has generated 20 per cent CAGR return in the last 40 years. The investment arm of Martin and Harris Laboratory is generating handsome returns for shareholders.
Martin Harris Laboratories have a couple of manufacturing facilities in Roorkee Uttarakhand and Una Himachal Pradesh where they make famous medicines like Drotin Plus, Amclox, Venusmin and Tamsin and others, which are of high demand in the market. The company is constantly making improvements to meet international standards, and is taking measures to modernize and expand its manufacturing units.
Apeejay Group was founded by Pyare Lal in 1910 and has an annual turnover of more than 2,500 Cr. Apeejay Group has entered hotels, real estates, constructions, shipping and pharmaceuticals from beginning its journey in Jalandhar to manufacture steel goods for the domestic agriculture industry. Later on, the legacy of Pyare Lal was carried out by his sons Surrendra and Stya. The group was divided into two parts i.e. Apeejay Surrendra and Apeejay Stya Group.
Apeejay Stya Group manages Martin and Harris Laboratory i.e. Pharma Business is a partnership with the Apeejay Education Society and the Apeejay Stya Universities. The legacy of excellence of Dr. Stya Paul is carried forward by his daughter and only child, Sushma Paul Berlia, Chairman of the Apeejay Education Society.
The business activities of Apeejay Surrendra Group are currently managed by his son and daughters, i.e. In the pre-IPO market, the shares of Martin Harris Laboratories are trading at Rs 2900 -- 3000 apiece. It commands a price to earnings P E ratio of just 10.75 to 11.11 x with an average EPS of Rs 270 for the last three years.
The pharma arm of the company generated a net profit of Rs 40 crore in FY 2020 -- 21 with an average EPS of Rs 102 for the last three years, and there is ample upside left in the company's P E ratio of 33 x.