Pharma Stocks With High Dividend Yield – List And Insights
Pharma Stocks With High Dividend Yield: Pharmaceutical companies discover, develop, manufacture, and market drugs for human and veterinary use. The sector is comprised of innovator/research companies that focus on new drug discovery and generic drug makers that produce low-cost copies of branded drugs. Companies increase shareholder value by paying dividends, and the yield measure benefits […] The post Pharma Stocks With High Dividend Yield – List And Insights appeared first on Trade Brains.
Pharma Stocks With High Dividend Yield: Pharmaceutical companies discover, develop, manufacture, and market drugs for human and veterinary use. The sector is comprised of innovator/research companies that focus on new drug discovery and generic drug makers that produce low-cost copies of branded drugs.
Companies increase shareholder value by paying dividends, and the yield measure benefits investors who expect a steady stream of income. In this article, we will look at companies in the pharmaceutical sector that have a high dividend yield.
Pharma Stocks With High Dividend Yield
Pharma Stocks with High Dividend Yield #1: Sanofi India
Sanofi India is one of the entities through which Sanofi operates in India. It was incorporated in May 1956 under the name Hoechst Fedco Pharma Private Limited. Its name has changed several times over the years, including Hoechst Pharmaceuticals Private Limited, Hoechst India Limited, Hoechst Marion Roussel Limited, and Aventis Pharma Limited.
Today, it employs more than 3,000 employees across India. large-scale manufacturing presence with a site in Goa and 12 contract manufacturing organizations (CMOs) in different parts of India. Sanofi, a French multinational pharmaceutical and healthcare company, holds 60.37% through its wholly owned subsidiary company, Hoechst GmbH, as of the December quarter.
The company has a dividend yield of 6.78%. They generate revenue from operations across geographies, with India accounting for 84.54%, Singapore accounting for 14.38%, and others accounting for 1.06% in FY23. They classify their revenue under a single segment, pharmaceutical products.
Sanofi India reports its financials in December of each year. The company’s revenue from operations stood at Rs. 2,770.1 crore in FY22 compared to Rs. 2,956.60 crore in FY21, a decrease of 6.30%. Net profits stood at Rs. 620.60 crore in FY22 as compared to Rs. 944.40 crore in FY21, a decrease of 34.28%.
In FY21, the company had 489.20 crores in exceptional items, which included the slump sale of its nutraceutical business to Universal Nutrisciences for 587 crores. The exceptional item for FY22 was a customer list and other databases related to the distribution business of Soframycin and Sofradex conducted by the company for Encube Ethicals Private Limited, which totaled 136.9 crore.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹9,197.45 | Market Cap (Cr.) | ₹21,182.00 |
| EPS (TTM) | ₹258.93 | Stock P/E (TTM) | 35.52 |
| RoE (%) | 48.64% | RoCE (%) | 55.14% |
| Promoter Holding (%) | 60.40% | FII Holding (%) | 6.31% |
| Price to Book Value (TTM) | 17.46 | Net Profit Margin (%) | 22.40% |
Pharma Stocks with High Dividend Yield #2: Glenmark Life Sciences
Glenamrk Life Sciences was incorporated in 2011. Their parent company, Glenmark Pharmaceuticals, owns 82.84% as of the December quarter. They specialise in the manufacturing and development of active pharmaceutical ingredients, as well as the contract development and manufacturing organisation (CDMO) business.
Nirma recently received approval from the Competition Commission of India (CCI) for its acquisition of Glenamrk Life Sciences for Rs. 5,651.50 crore, or Rs. 615 per share. The company has a dividend yield of 5.30%.
Glenmark Life generates revenue across geographies, with India accounting for 52.42% and the rest of the world accounting for 47.57% in FY23. They classify revenue as API (active pharmaceutical ingredients).
The company expects stable growth in FY24, which is slightly lower than previously estimated. The CDMO agreement was signed with a minimum off-take commitment of $5 million and is expected to go commercial in 2024, according to recent Q3FY24 transcripts.
The company’s revenue from operations stood at Rs. 2,161.22 crore as compared to Rs. 2,123.21 crore, an increase of 1.79%. Net profits stood at Rs. 466.96 crore in FY23 as compared to Rs. 418.72 crore, an increase of 11.52%. Their margins were stable from FY19 to FY23 and their sales grew at a 24.97% CAGR for 4 years.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹876.85 | Market Cap (Cr.) | ₹10,743.00 |
| EPS (TTM) | ₹42.38 | Stock P/E (TTM) | 20.69 |
| RoE (%) | 21.83% | RoCE (%) | 28.62% |
| Promoter Holding (%) | 82.85% | FII Holding (%) | 4.57% |
| Price to Book Value (TTM) | 5.05 | Net Profit Margin (%) | 21.60% |
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Pharma Stocks with High Dividend Yield #3: Procter and Gamble Health
Procter and Gamble Health was incorporated in 1964. The company primarily manufactures and sells healthcare products like vitamins, minerals, and supplements. Nasivion, Seven Seas, Polybion, Neurobion, Cosome, Livogen, and Evion are some of the brands of the company. They have a manufacturing plant in Goa.
To improve customer reach, the company’s network includes four distribution centres, 13 licensed distributors, and over 3000 P&G Pharma licensed stockists. The company has a dividend yield of 1.15%.
Their financial year is July to June of every year. Procter and Gamble Overseas owns 51.82% of the company as of the December 2023 quarter. Their revenue is earned from one segment, pharmaceuticals, and from operations across geographies, with India accounting for 89.15% and the rest of the world accounting for 10.84% in June FY23.
The company’s revenue from operations in June FY23 stood at Rs. 1,229.62 crore as compared to Rs. 1,114.41 crore in June FY22, an increase of 10.33%. Net profits stood at Rs. 229.47 crore in June FY23 compared to Rs. 192.52 crore in June FY22, an increase of 19.19%. The company’s revenue and net profit have not reached their peak in the financials for June 2020.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹5,048.10 | Market Cap (Cr.) | ₹8,379.00 |
| EPS (TTM) | ₹136.54 | Stock P/E (TTM) | 36.97 |
| RoE (%) | 30.55% | RoCE (%) | 39.50% |
| Promoter Holding (%) | 51.82% | FII Holding (%) | 7.60% |
| Price to Book Value (TTM) | 11.28 | Net Profit Margin (%) | 18.66% |
Pharma Stocks with High Dividend Yield #4: Pfizer
Pfizer began its operations in 1950. They deal in the manufacture and sale of biopharmaceutical products. With a product portfolio that includes over 16 therapies, 3 manufacturing facilities with a combined capacity of 4.5 billion units, exports to over 50 countries, and research in important areas like oncology, immunology, and anti-infectives, Pfizer is, all things considered, the fourth-largest multinational pharmaceutical company in India by revenue.
The company is looking to expand its manufacturing capabilities in Goa, Ahmedabad and Visakhapatnam facilities, with a combined capacity of 4.5 billion units. They also have a partnership with Zydus in Gujarat for oncological products. They are also hiring for an R&D facility in Chennai. The company has a dividend yield of 0.92%.
Pfizer categorises its revenue from operations into a single segment, pharmaceuticals, and earns most of its revenue from India – 97.16%, with the remaining 2.83% coming from the rest of the world.
The company’s revenue was Rs. 2,424.76 crore in FY23 compared to Rs. 2,610.99 crore in FY22, a decrease of 7.13%. Net profits stood at Rs. 623.93 crore in FY23 as compared to Rs. 612.56 crore in FY22, an increase of 1.85%. 4-year CAGR of revenue from operations and net profit stood at 3.89% and 9.82%, respectively.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹4,510.55 | Market Cap (Cr.) | ₹20,634.00 |
| EPS (TTM) | ₹109.76 | Stock P/E (TTM) | 41.09 |
| RoE (%) | 19.45% | RoCE (%) | 24.05% |
| Promoter Holding (%) | 63.92% | FII Holding (%) | 3.03% |
| Price to Book Value (TTM) | 6.44 | Net Profit Margin (%) | 25.73% |
Pharma Stocks with High Dividend Yield #5: GlaxoSmithKline Pharmaceuticals
GlaxoSmithKline Pharmaceuticals is the Indian division of GlaxoSmithKline plc. They create and manufacture vaccines, medications, and consumer products. Their pharmaceutical portfolio comprises prescription pharmaceuticals for ailments such as asthma, infectious diseases, mental health, and digestion, as well as nonprescription nutrition and beauty items.
Its vaccination product line includes treatments for diseases like influenza, HPV, hepatitis, and measles. Its consumer healthcare goods include packaged food and beverage powders under the Horlicks brand, as well as other retail items. According to the February 2024 transcript, the company claims to aim for double-digit growth over the next three to five years.
The company has a dividend yield of 1.37%. Glaxo generates revenue from pharmaceuticals and earns across geographies, with India accounting for 98.03% and the rest of the world accounting for 1.96% in fiscal year 23.
The company’s revenue from operations stood at Rs. 3,251.72 crore in FY23 as compared to Rs. 3,278.02 crore in FY22, a decrease of 0.80%. Net profits stood at Rs. 610.68 crore in FY23 compared to Rs. 1,694.71 crore in FY22, a decrease of 63.96%.
Profit from discontinued operations of Rs. 1,313.95 crore in FY22 had an impact on its earnings. According to profit from continued operations in FY23, the company’s profits increased by 59.58% YoY.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹2,238.35 | Market Cap (Cr.) | ₹37,919.00 |
| EPS (TTM) | ₹31.22 | Stock P/E (TTM) | 71.7 |
| RoE (%) | 35.41% | RoCE (%) | 41.95% |
| Promoter Holding (%) | 75.00% | FII Holding (%) | 2.93% |
| Price to Book Value (TTM) | 21.76 | Net Profit Margin (%) | 18.78% |
Read more: Bullish Stick Sandwich Pattern
Conclusion
As we near the end of the article Pharma Stocks With High Dividend Yield, companies operating in the pharmaceutical sector have the potential to expand their operations. The balance between rewarding shareholders through dividends and funding capex for capacity expansion is critical.
Companies in India that manufacture generic medicines stand to benefit from the volume growth in medicines due to affordability. What are your thoughts on these companies’ potential? Let us know your views in the comments section below.
Written by Santhosh
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The post Pharma Stocks With High Dividend Yield – List And Insights appeared first on Trade Brains.
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