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RPG Life Sciences (BOM:532983) Beneish M-Score : -2.38 (As of Dec. 15, 2024)


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What is RPG Life Sciences Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for RPG Life Sciences's Beneish M-Score or its related term are showing as below:

BOM:532983' s Beneish M-Score Range Over the Past 10 Years
Min: -3.38   Med: -2.44   Max: -1.7
Current: -2.38

During the past 13 years, the highest Beneish M-Score of RPG Life Sciences was -1.70. The lowest was -3.38. And the median was -2.44.


RPG Life Sciences Beneish M-Score Historical Data

The historical data trend for RPG Life Sciences's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

RPG Life Sciences Beneish M-Score Chart

RPG Life Sciences Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.44 -2.93 -3.01 -2.72 -2.38

RPG Life Sciences Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - -2.38 - -

Competitive Comparison of RPG Life Sciences's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, RPG Life Sciences's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


RPG Life Sciences's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, RPG Life Sciences's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where RPG Life Sciences's Beneish M-Score falls into.



RPG Life Sciences Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of RPG Life Sciences for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1547+0.528 * 0.9792+0.404 * 0.6912+0.892 * 1.1344+0.115 * 1.3702
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9607+4.679 * -0.013064-0.327 * 1.0418
=-2.38

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was ₹509 Mil.
Revenue was ₹5,775 Mil.
Gross Profit was ₹3,833 Mil.
Total Current Assets was ₹2,981 Mil.
Total Assets was ₹5,129 Mil.
Property, Plant and Equipment(Net PPE) was ₹1,818 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹171 Mil.
Selling, General, & Admin. Expense(SGA) was ₹609 Mil.
Total Current Liabilities was ₹1,310 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0 Mil.
Net Income was ₹877 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹944 Mil.
Total Receivables was ₹389 Mil.
Revenue was ₹5,091 Mil.
Gross Profit was ₹3,309 Mil.
Total Current Assets was ₹2,641 Mil.
Total Assets was ₹4,194 Mil.
Property, Plant and Equipment(Net PPE) was ₹1,163 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹155 Mil.
Selling, General, & Admin. Expense(SGA) was ₹559 Mil.
Total Current Liabilities was ₹1,028 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(509.4 / 5774.8) / (388.9 / 5090.8)
=0.088211 / 0.076393
=1.1547

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(3308.5 / 5090.8) / (3832.8 / 5774.8)
=0.649898 / 0.663711
=0.9792

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2980.9 + 1818.1) / 5128.7) / (1 - (2640.5 + 1163) / 4193.5)
=0.064285 / 0.093001
=0.6912

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=5774.8 / 5090.8
=1.1344

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(155 / (155 + 1163)) / (170.7 / (170.7 + 1818.1))
=0.117602 / 0.085831
=1.3702

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(609 / 5774.8) / (558.8 / 5090.8)
=0.105458 / 0.109767
=0.9607

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0 + 1309.6) / 5128.7) / ((0 + 1027.8) / 4193.5)
=0.255347 / 0.245094
=1.0418

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(876.6 - 0 - 943.6) / 5128.7
=-0.013064

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

RPG Life Sciences has a M-score of -2.38 suggests that the company is unlikely to be a manipulator.


RPG Life Sciences Beneish M-Score Related Terms

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RPG Life Sciences Business Description

Traded in Other Exchanges
Address
463, Dr. Annie Besant Road, RPG House, Near Old Passport Office, Worli, Mumbai, MH, IND, 400030
RPG Life Sciences Ltd is an integrated pharmaceutical company. Its only reportable segment is the manufacturing and marketing of pharmaceutical products. Geographically, it derives a majority of revenue from India. The company operates across Domestic Formulations, International Formulations and Active Pharmaceutical Ingredients (API). It focuses on Nephrology, Oncology, Urology, Respiratory, Gastrointestinal, Cardiovascular, Gynaecology and Pediatrics, Vitamins and Minerals, Pain Management, Neurology, Anti-Dengue, Anti-Diabetic, and Derma.

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