Suven
Pharmaceuticals Limited was promoted in 1989 by Mr.Jasti Venkateswarlu and Mrs.
Jasti Sudha Rani for the manufacture of bulk drugs and drug intermediates. The Company
was incorporated as a Private Limited Company on 9th March, 1989 in the state
of Andhra Pradesh. Subsequently on 4th January, 1995 it was converted into a
Public Limited Company. The company has 2 manufacturing units and 2 R&D
units in AP.
*BSEINDIA.COM
*BSEINDIA.COM
Technically too this stock is looking attractive for targets of 29 and 33.
The
company operates in three business segments:
a) Manufacturing (CRAMS)
b) Services (DDDSS)
c) Research and Development
Financials
Annual results:
(in Cr.)
|
2011 - 12
|
2010 - 11
|
2009 - 10
|
2008 - 09
|
2007 - 08
|
Income Statement
|
|||||
Revenue
|
203.83
|
150.43
|
129.31
|
140.83
|
119.95
|
Other Income
|
1.91
|
1.26
|
0.49
|
5.29
|
3.08
|
Total Income
|
205.74
|
151.69
|
129.81
|
146.12
|
123.04
|
Expenditure
|
-180.53
|
-137.67
|
-116.75
|
-130.46
|
-107.85
|
Interest
|
-9
|
-5.32
|
-4.05
|
-5.62
|
-4.57
|
PBDT
|
16.21
|
8.7
|
9
|
10.04
|
10.62
|
Depreciation
|
-5.54
|
-5.45
|
-5.29
|
-4.97
|
-4.36
|
PBT
|
10.67
|
3.25
|
3.71
|
5.07
|
6.26
|
Tax
|
4.85
|
7.15
|
3.3
|
1.99
|
1.99
|
Net Profit
|
15.52
|
10.4
|
7
|
7.06
|
8.26
|
Equity
|
11.67
|
11.67
|
11.59
|
11.59
|
11.57
|
Reserves
|
--
|
--
|
--
|
--
|
--
|
EPS
|
1.33
|
0.89
|
0.6
|
0.61
|
0.71
|
CEPS
|
1.8
|
--
|
1.06
|
1.04
|
--
|
OPM %
|
12.37
|
9.32
|
10.09
|
11.12
|
12.66
|
NPM %
|
7.62
|
6.91
|
5.41
|
5.01
|
6.89
|
The sales of the company has
increased CAGR of 16% and the profit in the same period is growing @ 30 CAGR.
During the same duration the OPM has increased by 225bps and NPM has increased
by 221bps.
Quarterly:
(in Cr.)
|
12-Jun
|
12-Mar
|
11-Dec
|
11-Sep
|
11-Jun
|
Mar-12 (Annual)
|
Income Statement
|
||||||
Revenue
|
70.53
|
62.51
|
48.64
|
48.04
|
44.63
|
203.83
|
Other Income
|
0.53
|
--
|
1.56
|
1.62
|
0.2
|
1.91
|
Total Income
|
71.05
|
62.51
|
50.2
|
49.67
|
44.84
|
205.74
|
Expenditure
|
-57.19
|
-49.49
|
-48.06
|
-45.66
|
-39.46
|
-180.53
|
Interest
|
-3.22
|
-2.63
|
-2.14
|
-1.93
|
-1.64
|
-9
|
PBDT
|
10.64
|
10.4
|
0
|
2.08
|
3.74
|
16.21
|
Depreciation
|
-1.83
|
-1.37
|
-1.38
|
-1.4
|
-1.39
|
-5.54
|
PBT
|
8.81
|
9.02
|
-1.38
|
0.68
|
2.35
|
10.67
|
Tax
|
-0.85
|
-0.72
|
2.68
|
1.88
|
1.01
|
4.85
|
Net Profit
|
7.96
|
8.31
|
1.29
|
2.56
|
3.36
|
15.52
|
Equity
|
11.67
|
11.67
|
11.67
|
11.67
|
11.67
|
11.67
|
EPS
|
0.68
|
0.71
|
0.11
|
0.22
|
0.29
|
1.33
|
CEPS
|
0.84
|
0.83
|
0.23
|
0.34
|
0.41
|
1.8
|
OPM %
|
19.65
|
20.83
|
4.39
|
8.34
|
12.04
|
12.37
|
NPM %
|
11.29
|
13.29
|
2.66
|
5.33
|
7.53
|
7.62
|
Sales of the company grew by 13%
QoQ and 58% YoY. During the same duration the profits of the company fell by 4%
QoQ but rose by phenomenal 137% YoY.
Investment rationale:
1. The
company is sharing is investor friendly as they are paying dividend
consistently since 2008 and gave bonus (1:1) in 2007.
2. Strong
promoter holding: Promoters shareholding in the company is more than 63.44%
3. Profit
margins of the company are rising coupled with increasing sales leading to
higher EPS.
4. Merger
of SUVEN NISHTAA PHARMA PVT LTD will lead to more cost synergies thus higher
profitability.
Inherent risk (specific to the company):
1. This
a Hyderabad based company so irrespective of claims of good corporate
governance one may never know when company go bad like Jupiter Bio and Satyam.
2. Historically,
the performance of the company has been highly fluctuating.
The stock is listed both at
BSE:530239 NSE: SUVEN. The closing price of the stock was Rs 26.8
Technically too this stock is looking attractive for targets of 29 and 33.
Disclaimer: I own 600 shares of the company @ 31 since 2010. My relatives hold undisclosed quantities of shares in the company.
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