In the financial year 2020-21, Martin & Harris Laboratories declared a profit after tax (PAT) of Rs 177 crore, a rise of 138.96 percent against a net profit of Rs 70 crore in the financial year 2019-20. In the last seven years, the revenue of the company is grown by 30 percent CAGR and touched 336 crores from Rs 67 Crore, whereas PAT has surged at a CAGR of 61 percent to Rs 177 crore. The total income for the Financial Year 2020-21 includes Rs 138 crore from the pharma business and Rs 196 crore from the investment business. The earnings per share (EPS) of the company zoomed to 443 in FY21 against an EPS of 180 in FY20.
In FY21, Delite Infrastructure an investment arm of Martin and Harris Laboratory generated Earnings Before Income And Tax( EBIT) of 160 Crores on capital of 400 Crores, which is a 40 percent return on capital. And, though the period and portfolio are large, if we benchmark this with Warren Buffet’s investment company Berkshire Hathaway, the same has generated a 20 percent CAGR return in the last 40 years. This shows that the investment arm of Martin and Harris Laboratory is generating a handsome return for shareholders.
Martin & Harris Laboratories have a couple of manufacturing facilities in Roorkee (Uttarakhand) and Una (Himachal Pradesh) wherein they manufacture some famous medicines like Drotin Plus, Amclox, Venusmin, and Tamsin, etc which are having high demand in the market. The company is constantly taking steps to modernize and expand its manufacturing units to meet international standards.
Today, Apeejay Stya Group which was Established in 1910 by pyare Lal, has an annual turnover of more than Rs 2,500 Cr. From starting its journey in Jalandhar to manufacture steel goods for the domestic agriculture industry, today Apeejay Group has ventured into hotels, real estate, constructions, shipping, and pharmaceuticals managing Martin and Harris Laboratory i.e. Pharma Business along with Apeejay Education Society and the Apeejay Stya Universities. Dr. Stya Paul’s legacy of excellence is being carried forward by his daughter and only child, Sushma Paul Berlia, Chairman of the Apeejay Education Society.
Apeejay Surrendra Group's business activities are presently overseen by his son and daughters i.e. Priya, Priti, and Karan Paul. In the pre-IPO market, the shares of Martin & Harris Laboratories are trading at Rs 2900-3000 apiece. With an average EPS of Rs 270 for the last three years, it commands a price-to-earnings (P/E) ratio of little more than 10.75 to 11.11x. On a standalone basis, the company’s pharma arm generated a net profit of Rs 40 crore in FY 2020-21 with an average EPS of Rs 102 for the last three years, it is trading at a P/E ratio of 28x. Nifty Pharma index is trading at a P/E ratio of 33x, there is ample upside left in the company.