RPG Life Sciences (RPGLS) is an Indian pharmaceutical company formerly known as Searle (India) Ltd, part of RPG Enterprises. The company has established itself as a significant player in the Indian pharmaceutical sector with its corporate office located in RPG House in Worli, Mumbai.
The integrated pharmaceutical company established its presence in India in 1968 through a joint venture with GD Searle, USA, and was later wholly acquired by RPG Group in 1993. The company is headquartered in Mumbai, Maharashtra, currently employs 1,165 full-time employees, and went public on June 10, 2008.
The company operates in the domestic and international markets in the formulations, generics, and synthetic active pharmaceutical ingredients (APIs) space, with its business portfolio including domestic formulations, international formulations, and APIs. With a footprint in over 50 countries, RPGLS has a product portfolio encompassing 10 therapy areas and three manufacturing plants in Maharashtra and Gujarat.
The company operates through three primary business divisions. Its domestic formulation business manufactures and markets branded finished dosage formulations in India, with presence in over 10 therapeutic areas, including nephrology, oncology, rheumatology, cardiology, respiratory, nutritional, gastroenterology, and diabetology. The business has major presence in therapeutic areas including Nephrology, Oncology, Urology, Respiratory, Vitamins & Minerals, Gastro Intestinal, Pain Management, and Cardio-vascular.
The Active Pharmaceutical Ingredients business is the company's smallest division and contributes around 17% to revenues, offering a range of high-value synthetic APIs in the general therapeutics category, with a presence in Europe, Latin America, and Asia. RPG Life Sciences offers a range of high value synthetic APIs in the general therapeutic category, with presence in Europe, Latin America and Asia, making forays into the US markets.
As of the previous close price of INR 2,073.35, shares in RPG Life Sciences had a market capitalization of INR 34.29 billion. The company has a market cap of ₹4,139 Crore (up 59.5% in 1 year), revenue of ₹653 Crore, and profit of ₹183 Crore as of recent data. As of March 31, 2025, RPG Life Sciences has a trailing 12-month revenue of $77.3M.
The company's stock performance has been notable, with shares moving by +38.52% over the past 365 days, with the RPG Life Sciences share price outperforming the S&P BSE 100 Index by +37.8% over the past year. Over the past six months, its share price has outperformed the S&P BSE 100 Index by +3.73%.
Key financial indicators show mixed performance patterns. RPG Life Sciences's EPS for 12 months was $1.31, while the latest P/E ratio as of January 9, 2025, is 53.73 and the latest P/B ratio is 10.01. The stock is trading at 7.80 times its book value.
The company maintains a healthy dividend policy, with a dividend yield of 0.77% based on the trailing twelve-month period, having paid a total dividend of INR 16.00 last year. The company has been maintaining a healthy dividend payout of 25.9%.
The company has delivered good profit growth of 28.5% CAGR over the last 5 years and has a good return on equity (ROE) track record with 3 Years ROE of 25.2%. However, the company has delivered a poor sales growth of 11.7% over the past five years, indicating challenges in revenue expansion.
The company is almost debt-free, which provides financial stability and flexibility for future operations. Promoter holding stands at 73.0%, indicating strong management control and confidence in the business.
The overall consensus recommendation for RPG Life Sciences is Buy, reflecting positive analyst sentiment. Based on an overall assessment of its quality, value and momentum, RPG Life Sciences is currently classified as a High Flyer, with the classification based on a composite score that examines a wide range of fundamental and technical measures.
However, valuation concerns exist, as the intrinsic value of one RPGLIFE stock under the Base Case scenario is 1,237.36 INR, compared to the current market price of 2,177.3 INR, suggesting RPG Life Sciences Limited is overvalued by 43%.
The company's strategic focus on expanding its international presence, particularly making forays into the US markets, along with its established position in multiple therapeutic areas, positions it well for future growth despite current valuation concerns.
