Bhai Hyderabad based companies SE Bahutu dar lagta hai.how good is the promoter from integrity perspective n how is the quality of numbers?hyderabad base d CAs are very enterprising as is evident from satyam ,tanka,mic electronics,bartronics,Icsa,karturi,beta lactam lab,ramky,ivrcl,ncc,the list is too long.
Started by an first generation entrepreneur with around 25 years experience, and a surgeon with 4 decade of experience who is the current Chairman of Andhra Pradesh Medical Council.
Chairman of AMFI, Founder of Karvy, Director of Dena banks are amongst its Board of Director. Current CEO is a IIT-Chennai alumnus, Phd from Purdue, and MBA from Dukes.
Revunue/PAT/EPS increased 40-50% last one year. Dividend increased by 33%. They have given a guidance of ~40% growth in FY12 and FY13. That too without realizing the effect of their partnership with Ajinomoto UniChem, whose effect will start reflecting from FY14-FY15.
OPM - 12%
ROCE - 19%
Other facts:-
Because of high depreciation burden cash EPS has been very high. It has beenclose to Rs 19-20 for FY11. (2 time EPS)
Promoters and Institutional Investors have approx 80% shareholding.
It has increasing margins and an evolving revenue profile; from active pharmaceutical ingredients (API), it has now moved towards finished dosages which should give a very strong discounting on the markets.
The value will start becoming increasingly evident from Q2 of the current financial year, by which time the impact of the expansion the trebling capacity in finished dosages and more than doubling capacity in pharmaceutical formulation intermediates (PFIs) will be evident.
IF u compare the march quarter results with june quarter there is a lot of margin pressure visibile probably due to higher raw material costs.
sales almost same for both quarters to the tune of 1881-189 crores but net profit figures show big variations. q4 fy 12 net profits at 16.37 crores and q1 fy 13 profit at 6.27 crores.
I dont know if there is any seasonality to raw material costs but there seems to be a big difference in raw material costs for same amount of sales.
hi hitesh, i agree that the raw material costs went up but the net profits look much worse because there was a forex gain of 7.85 crores in the mar12 quarter vs loss of 4 lacs this quarter. the seasonality in cost of raw materials is still something to explore more because i see raw material cost as a percentage of sales at 74% this quarter vs 64.2% in mar12 quarter but it was 71.5% in fy11 which is similar to this quarter.
I’m new here. After going through some topics, it seems this website is an information goldmine! So, thank you! By the way, I came here looking for information regarding Granules India. I also noticed the volatile raw materials cost. In the 2011-12 annual report, they wrote that the increase in raw materials cost is mainly due to increase in crude oil prices. Another reason was the company’s insistence on choosing high-quality suppliers to maintain their end-product quality. I think these are kinda acceptable reasons. Good thing is, they also wrote that they have contracts with their customers/clients, so that the variation in raw material costs is passed on to them. Hence, if we see the Y-o-Y (%) changes, the gross sales, total expenditure and operating profit, all three have similar percent changes.
Did any of you find any other reason for this variation in raw materials cost?
although this one continues to look good for long-term, i am getting a bit concerned with the sharp run-up in the short-term. the run up has been on low delivery volumes with today’s move happening at < 9% delivery. a decent consolidation or time-wise correction is warranted to allow the earnings to catch-up or we could be looking at a very sharp fall.
disc: invested and is 2nd largest allocation in my portfolio
