Jenburkt Pharmaceuticals Limited

Transcription

1 Jenburkt Pharmaceuticals Limited Date: 3 rd February, 2016 Stock Performance Details Shareholding Details October 2015 Current Price : ` 418.0^ Face Value : ` 10 per share 52 wk High / Low : ` / Total Traded Volumes: 1,620 shares^ Market Cap : ` crore^ Sector : Pharmaceuticals EPS (H1 FY16) : ` per share Equity Share Capital : ` 4.7 crore P/E (TTM) : (x)^ P/BV (TTM) : 5.81 (x)^ Financial Year End : 1 st April 31 st March BSE Scrip Name : JENBURPH BSE Scrip Code : ^ as on 1 st February, 2016 Particulars Shareholding Nos. (%) Promoter & Promoter Group Holding 21,28, Total Institutional Holdings (FIIs & DIIs) Public Holdings 25,21, Total 46,49, Background Jenburkt Pharmaceuticals Limited (JPL) was incorporated on 10 th June, The company is engaged in the manufacture of pharmaceutical formulations. Its products include anthelmintic, anti-osteoporotic, anti-arthritics, anti-ulcerants, antibiotics, aphrodisiac, anticough, cold and allergy, dermatological, anti-diabetic, gastrointestinal, anti-hypertensive, hematinic, anti-inflammatory, analgesic, neuropathy, anti-malarial and protein preparations. It offers Ornel tablets, Cartisafe Forte MSM tablets, Efelac 100 tablets, Efelac 200 tablets, Numox capsules, Allerzine tablets, Piritexyl cough syrup, Glucotrol tablets, Glucotrol MF tablets, Metmin tablets, Lorpijen tablets, Powergesic tablets, Luma-DS tablets and Luma- Forte tablets, among others. The Company offers its products to Government, Semi-Government Institutions, Missionary Hospitals and Public Sector Enterprises, etc. JPL promotes all its 85 brands across 75,000 doctors and 50,000 chemists regularly. It offers its products to approximately 15 countries. The Company's manufacturing plant is located at Sihor, Gujarat. An Initiative of the BSE Investors Protection Fund1

2 Financial Snapshot Particulars Standalone (` Million) Income Statement H1 FY16 H1 FY15 Income from Operations Y-o-Y Growth (%) EBITDA Y-o-Y Growth (%) EBITDA Margin (%) Net Profit Y-o-Y Growth (%) NPM (%) Balance Sheet Fixed Assets Cash and Bank Balances Inventories Net Working Capital Net Worth Balance Sheet Ratios ROCE (%) RONW (%) Source: Capitaline From the Research Desk of LKW s Gurukshetra During H1 FY16, the Company s Income from Operations grew by 13.4% on a y-o-y basis from Rs million to Rs million in H1 FY16. Material Cost forming 33% of the Income from Operations increased by 18.5% on a y- o-y basis to Rs million in H1 FY16 from Rs. 131 million reported in H1 FY15. Employee Benefit Expenses increased from Rs million in H1 FY15 to Rs million in H1 FY16. Other Expenses increased by 9.6% y-o-y from Rs million in H1 FY15 to Rs million in H1 FY16. The Company reported an Operating Profit of Rs million on account of higher Sales for the period under review. The Operating Profit for H1 FY15 stood at Rs. 70 million. EBIDTA Margin increased to 17.9% in H1 FY16 from 16.9% on H1 FY15. With the growth witnessed at the EBIDTA level, Net profit of the Company stood at Rs million in H1 FY16 as compared to Rs million in H1 FY15, thus marking an increase of 26.2% on a y-o-y basis. Net Profit Margin for H1 FY16 stood at 12.7% as against 11.4% in H1 FY15. An Initiative of the BSE Investors Protection Fund2

3 Sundry Debtors decreased to Rs million in H1 FY16 from Rs.154 million reported in H1 FY15. The same as a percentage of Total Revenues remained on the lower side and stood at 2.1% in H1 FY16 against 18.9% in H1 FY15 respectively. Inventories increased to Rs million in H1 FY16 from Rs million in H1 FY15. Debtors increased to Rs million in H1 FY16 from Rs million in H1 FY15. Cash and Bank Balance increased to Rs million in H1 FY16 from Rs million in H1 FY15. JPL s Total Debt comprising Short Term Borrowings stood lower at Rs million in H1 FY16 as compared to Rs million in H1 FY15. Performance on the Bourses % Stock Performance as on 28h January, 2016 Jenburkt Pharmaceuticals BSE Small Cap Peer Comparison The table mentioned below gives a snapshot of the Company s performance for H1 FY16 to those of its peers which operate in a similar business segment in the listed space. (` In millions) Particulars Jenburkt Pharmaceuticals Albert David Bliss GVS Pharma Income from Operations , ,725.1 EBIDTA Net Profit EBIDTA Margins (%) PAT Margins (%) Book Value Per Share P/E (x) 17.86^ 12.79^ 29.09^ P/BV (x) 5.99^ 1.92^ 5.06^ RONW (%) Source: Capitaline ; Financials on Standalone Basis ; ^ On a Standalone Basis as on September, 2015 (TTM Basis) An Initiative of the BSE Investors Protection Fund3

4 About the Industry Management Outlook The Indian pharmaceuticals industry is the third largest in terms of volume and thirteen largest in terms of value. Branded generics dominate the pharmaceuticals market, constituting nearly 70-80% of the market. India is one of the largest providers of generic drugs globally with the Indian generics accounting for 20% of global exports in terms of volume. Consolidation has become an important characteristic of the Indian pharmaceutical market as the industry is highly fragmented. It is estimated to grow at 20% CAGR over the next five years. Presently, the market size of the pharmaceutical industry in India stands at US$ 20 billion. As on March 2014, Indian pharmaceutical manufacturing facilities registered with the US Food and Drug Administration (FDA) stood at 523, highest for any country outside the US. Healthcare has become one of India s largest sectors in revenue as well as employment terms. It comprises medical devices, clinical trials, hospitals, medical equipments, health insurance, telemedicine, medical tourism etc. The sector is growing at a brisk pace due to its strengthening coverage, favourable demographics and increasing expenditure by public as well as private players. The overall Indian healthcare market today is worth US$ 100 billion and is expected to grow to US$ 280 billion by 2020 at a CAGR of 22.9%. Healthcare delivery, which includes hospitals, nursing homes, diagnostics centres, and pharmaceuticals, constitutes 65% of the overall market. The hospital and diagnostic centers attracted Foreign Direct Investment (FDI) worth US$ 3.14 billion between April 2000 and June 2015, according to data released by the Department of Industrial Policy and Promotion (DIPP). The Government of India has reduced the approval time for new facilities to boost investments. Further, it has introduced mechanisms such as the Drug Price Control Order and the National Pharmaceutical Pricing Authority to deal with the issue of affordability and availability of medicines. The Government of India plans to set up a US $640 million venture capital fund to boost discovery and strengthen pharmaceutical infrastructure.in addition, the thrust on rural health programmes, lifesaving drugs and preventive vaccines also augurs well for the healthcare companies. The private sector has emerged as a vibrant force in India's healthcare industry, lending it both national and international repute. The country has become one of the leading destinations for high-end diagnostic services with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater proportion of population. The Addendum 2015 of the Indian Pharmacopoeia (IP) 2014, published by the Indian Pharmacopoeia Commission (IPC) on behalf of the Ministry of Health & Family Welfare, is expected to play a significant role in enhancing the quality of medicines that would in turn promote public health and accelerate the growth and development of the pharmaceutical sector. The Government of India unveiled 'Pharma Vision 2020' aimed at making India a global leader in end-to-end drug manufacture. Approval time for new facilities has been reduced to boost investments. Further, the Government introduced mechanisms such as the Drug Price Control Order and the National Pharmaceutical Pricing Authority to deal with the issue of affordability and availability of medicines. JPL has its WHO GMP approved plant, which is also approved under Schedule M. The Company is focusing on product development through its own Research and Development unit and on exports through its International Business Division. It has launched novel concepts of fixed dose combinations which is introduced by the Company for the first time in many countries. JPL operates in both, Acute (70%) and Chronic (30%) therapeutic segments. However, it plans to develop and market more products for chronic ailments which witnesses growing patient population due to lifestyle changes. It also plans to extend its reach and penetration into extraurban markets like Class 2 and Class 4 towns. The Indian Pharmaceutical Industry is poised to escalate its growth, mainly due to the potentially huge demand for the innovative and world class quality drugs in India and in the overseas market, though the pricing plays a vital role for the Companies in the industry. The growth in the industry is mainly driven by contract manufacturing and backward integration resulting in quality control and reduction in cost. Factors like increasing material cost, manufacturing, marketing and administrative expenditures, plant and product registrations, at various countries, R&D activities and stiff competition in domestic as well as in the foreign market may affect the performance of the Company. An Initiative of the BSE Investors Protection Fund4

5 Financial Graphs 480 Net Income from Operations ` in Million H1 FY15 H1 FY EBIDTA & EBIDTA Margins ` in Million H1 FY H1 FY % EBIDTA EBIDTA Margins 80 PAT & PAT Margins ` in Million % 0 H1 FY15 H1 FY16 10 PAT PAT Margins An Initiative of the BSE Investors Protection Fund5

6 Disclaimer All information contained in the document has been obtained by LKW s Gurukshetra from sources believed to be accurate and reliable. Although reasonable care has been taken to ensure that the information herein is true, such information is provided as is without any warranty of any kind, and LKW s Gurukshetra in particular makes no representation or warranty express or implied, as to the accuracy, timeliness or completeness of any such information. All information contained herein must be construed solely as statements based on available data, and LKW s Gurukshetra shall not be liable for any losses incurred by users from any use of this document or its contents in any manner. Opinions expressed in this document are not the opinions of our company and should not be construed as any indication of our recommendation to buy, sell or invest in the company under coverage. Disclosure Each member of the team involved in the preparation of this report, hereby affirms that there exists no conflict of interest. The report has been sponsored and published as part of Initiative of BSE s Investors Protection Fund About Us LOTUS KNOWLWEALTH (LKW) commenced business in 1991 and is currently engaged in providing CAPITAL MARKET RESEARCH, INVESTMENT ADVISORY and STRATEGY services. GURUKSHETRA is the Research and Training arm of LKW. LKW Investment Advisers is the SEBI registered Investment Advisory arm of LKW. 5 Contact Us LOTUS KNOWLWEALTH Pvt. Ltd. Regd. Office: B Wing, , Fairlink Centre, Off Andheri Link Road, Andheri (W), Mumbai enquiry@lotusknowlwealth.com Tel: Website: An Initiative of the BSE Investors Protection Fund6