🧠 At a Glance
Pfizer India is the desi arm of Pfizer Inc., one of the world’s biggest drug giants. Despite holding blockbuster molecules, the India unit is a low-growth, high-profit machine that moves like your neighbourhood pension uncle – slow, steady, and always giving dividends.
1. 🧬 WTF Do They Even Do?
- Engaged in manufacturing, marketing, and trading of pharma products
- Uses both own facilities and contract manufacturing partners
- Entirely India-focused, no exports of significance
- Major brands include Shelcal (calcium), Becosules (multivitamins), Corex, and Prevenar 13 (vaccine)
2. 💰 Financials Snapshot (FY25)
| Metric | Value |
|---|---|
| Revenue | ₹2,281 Cr |
| Net Profit | ₹768 Cr |
| OPM | 33% |
| EPS | ₹167.79 |
| ROCE / ROE | 22% / 16% |
| Dividend Declared | ₹165/share |
| Payout Ratio | 119% 😳 |
3. 🧾 Valuation – Is It Cheap or Just Elite Tax Saving?
- P/E Ratio: ~41x
- Dividend Yield: 0.61%
- CMP/BV: 6.2x
- Comparables like Sun Pharma, Cipla trade at ~20–35x
💭 Verdict: Not cheap. Priced like it’s made of monoclonal antibodies. But elite investors hold it more for legacy, trust, and “safe pharma exposure”.
4. 📉 What’s the Problem?
- Sales CAGR (5Y): Just 1.2%
- 3Y Profit CAGR: 2%
- Consistently underperforms peers in topline growth
- Heavy reliance on Other Income: ₹344 Cr in FY25!
It’s like the guy who keeps getting promoted because of family money (interest income), not performance.
5. 🚀 Triggers & What’s Cooking?
- FY25 saw OPM jump to 33% due to cost control and product mix
- Reshma Parida appointed Senior Director – People Experience (meh)
- No visible product pipeline launches, acquisitions, or USFDA greenlights
So unless they drop a vaccine or blockbuster, growth will remain like their sales charts – flat AF.
6. 🏦 Balance Sheet
- Cash-rich, zero major debt
- Reserves of ₹4,172 Cr vs Equity Capital of ₹46 Cr
- Negligible borrowings (₹41 Cr)
- Minimal fixed assets – asset-light business
7. 🧮 Cash Flow Game
| Year | CFO | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| FY25 | ₹660 Cr | -₹71 Cr | -₹205 Cr | ₹383 Cr |
- Stable CFO every year, thanks to high margins
- Most cash goes into dividends or sits idle
8. 📊 Ratios Snapshot
- Inventory Days: 214 (going up – bad)
- Payables Days: 68 (going down – worse)
- Cash Conversion Cycle: Now 177 days (yikes!)
- ROE stable at 16%+
9. 🧾 P&L Breakdown
| Year | Sales (₹ Cr) | OPM % | PAT (₹ Cr) | EPS (₹) |
|---|---|---|---|---|
| FY23 | 2,425 | 33% | 624 | 136.4 |
| FY24 | 2,193 | 29% | 551 | 120.5 |
| FY25 | 2,281 | 33% | 768 | 167.8 |
So sales fell, bounced back slightly, but profit jumped – thanks to “Other Income”.
10. 👯 Peer Comparison
| Company | P/E | OPM % | ROE % | Sales Growth |
|---|---|---|---|---|
| Pfizer | 41x | 33% | 16% | 1% (5Y) |
| Cipla | 24x | 26% | 18% | 9% (5Y) |
| Sun Pharma | 35x | 29% | 17% | 10% (5Y) |
| Dr Reddy’s | 19x | 26% | 18% | 13% (5Y) |
| Zydus | 21x | 30% | 21% | 9% (5Y) |
📌 Pfizer is the slowest in growth, but maintains elite profitability and dividends.
11. 🧾 Shareholding Drama?
- Promoter (Pfizer Inc.): 63.92% – constant
- DIIs steadily increasing to 17.1% (LIC + Mutual funds love this)
- Retail down to 16.8% – not a janta stock anymore
- Shareholder count has shrunk from 1.23L to 1.08L in 3 years
12. 🔍 EduInvesting Verdict™
“If boring had a brand ambassador, it would be Pfizer India.”
🟢 Great if you’re:
- A retiree who likes dividends
- An HNI wanting a defensive pharma MNC for balance
🔴 Not ideal if you want:
- Growth
- Excitement
- Rocketships
🎯 Fair Value Range: ₹4,800–₹5,400
Basis:
- Normalized EPS (ex-other income): ~₹115
- Fair P/E range: 42x–47x for an MNC with high margins
- Higher band only justified if sales growth improves
Tags: Pfizer India, Pharma Stocks, MNC Companies, Defensive Stocks, Dividend Stocks, EduInvesting
✍️ Written by Prashant | 📅 July 3, 2025
