BDH Industries

(BSE Code: 524828) (CMP: Rs.160) (FV: Rs.10)

 BDH industries is engaged in the manufacturing of therapeutic

formulations covering a range of pharmaceuticals.

 The company offers its products in various therapeutic classes, such

as antifungal, antibiotics, anticancer, anti-diabetic, antidepressant,
anti-ulcerant, antimalarial, anti-inflammatory, analgesic,
antispasmodic, anti-tuberculosis, cardiovascular, dermatological,
non-steroidal anti-inflammatory drugs, psychotropic, trichology,
and vitamins and minerals.

 Company has state of art manufacturing plant comprising of

42,500 square feet which meets WHO GMP standards. Fully
automated manufacturing system gives company unique capability
to go into wide range of dosage forms such as tablets, capsules,
external ointment, small volume parenterals etc.

 Company exports to over 60 countries across the globe and has

won many awards for its performance in the business.

 Main business activity of the company are Formulations &

Speciality Formulations.
 OPM (Operating Profit Margin) of the company is gradually
improving since past 5 years and currently it stands at 15%

 It is a DEBT FREE CASH RICH company with 22cr cash and healthy
dividend yield is available at M. Cap of just 93cr

 It is a regular dividend paying company and has paid dividend for

past many years consequently and has dividend yield of 2.5%
EPS Rs 14.79

PE just 10.72

ROE 16.27%

ROCE 19.61%

EBITDA Margin 14.36%

PAT Margin 10.41%

Realty story of BDH: BDH stands out for Bombay Drug

House. Company’s plant is located on 2.7 lac sq ft at Kandivali east
adjoining to Big Bazaar, Grauer and Weil mall (Growel 101) in the prime
location of Kandivali. The FSI there is 2 which give saleable area of 5.4 lac
sq ft on which 30% loading is permissible and feasible. Thus total
saleable area works out to 7 lac sq ft and the existing market rate is Rs
18000 per sq ft. BDH has a manufacturing are spread over 42,500 square
feet though the entire space is 270,000 sq ft.Co owns land and
development cost is estimated at Rs 2500 per sq ft which leaves post tax
profit ( 30% assumed) of Rs 10850 per sq ft. The clear tax free profit
could be Rs 760 Crore on equity of Rs 5 Crores offering earnings of
Rs 1520 per share. Shifting cost is not in excess of Rs 20 Crore which
hardly matters. So if it vindicates all these then BDH is all set to make
history in the bourses in the future.

Rumuors are that leading Mumbai Builders are approaching the co with
an outright sell of the said land for a very handsome price. Since the
property is adjacent to Big Bazzar, a very prime location in Kandivali
chances of big realty players stepping in is not ruled out.
The company has posted excellent results in Q2FY23, it has posted EPS
of Rs 5.05 in Q2FY23 against EPS of Rs 2.69 in Q2FY22 showing 87.7%
increase in profits. Company has posted EPS of Rs 7.74 in H1FY23 which
shows company is performing very well.
The stock is technically & fundamentally VERY strong and is available at
throwaway valuations, even on very conservative basis this company can
be a multibagger candidate and can give 5x to 8x returns going forward.