They seem to be invested only in 1 company currently - Lyka Labs. Do you have any more information regarding past investments?
Meanwhile, in a strange turn of events the proposed allotment to B & K has been cancelled.
Only press release pertaining to respective rating which contains limited information are public. U will have to subscribe to and pay for the detailed rating rationale report to access said report. The link you are referring to is of press release and not the detailed rating rationale.
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Sakar Healthcare Limited has informed the Exchange regarding ‘Swiss based HBM Healthcare Investments; a leading global healthcare private equity recently invested Rs 14.85 crore in Sakar Healthcare through its wing COBRA.’
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Hi, I am unable to buy the scrip. The order keeps getting rejected. I use Axis direct, NRI account. It asks me to put in a lot size of 3,000, which I do and still get rejected. Any insights would be appreciated.
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Sakar Healthcare Q-1
While there has been de-growth in sales, ebitda margins have improved. Numbers are decent considering higher depreciation owing to their foray in oncology formulations.
- Depreciation up from 2.18 Cr to 3.57 Cr
- Finance cost up from 0.49 Cr to 0.86 Cr
What’s interesting :
Their manufacturing facility for OSD and tablets + capsules was expected to commercialise in June 2022.
In the OSD section, they have targeted 5 high-value molecules at the beginning. (Source - Arihant Capital Notes)
The commercialisation might be delayed in my view due to following reason :
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They are in the process to obtain approval from EU which will take anywhere between 4-6 weeks time post audit if there aren’t any major observations.
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In case they receive any major observations, the commercialisation can be delayed by an indefinite time.
While the targets are pretty optimistic and at the same time achievable too, I’ll be keeping an eye on balance sheet position along with execution.
Disclosure - Not invested but definitely interested.
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Some rough back of the envelop calculation
→ FY22
Rev = 125 cr (Considering only Base business with no contribution from oncology)
Ebidta margin = 24%
Ebidta = 30 cr
PAT = 15cr
→ FY24 (as per report)
Rev = 305cr
PAT = 45 cr …3X jump in PAT from FY22 in 2 years
→ FY26
→ Base Business (assuming growing @10%CAGR)
Rev = 185cr
Ebidta = 45cr (margin considered as 24%)
→ Oncology Business
Rev = 450cr (approx avg of 400&500)
Ebidta = 135cr (margin considered 30%)
Total Rev = 630cr
Total Ebidta = 180cr
If it gets 15X Ebidta Multiple (which is its current multiple) then Mcap will be 2700 …like 6X-7X from current Mcap of 420cr
Please feel free to comment your view
Disc : Invested
Note : Entered into an agreement with reputed client (Cadila Healthcare) for oncology product
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Whose report is this? Can you share the full report if available.
If I am not wrong, at the AGM the management said oncology plant is complete and we have received WHO GMP approval. We are now starting for validation, stability etc. for the plant. Commercials will be from next financial year onward.
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Arihant Capital is the author of the report
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Received WHO - GMP approval for oncology Oral Solid Dosage (OSD) and Active Pharmaceutical Ingredient (API) manufacturing blocks
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The company makes a profit of 15 crore in last year. Instead of giving dividend to the shareholders , the management invested 7 crore rs in mutual fund. Is it justified ? It may be that they have a capex plan, but a few rupees can be given as a dividend to the shareholder.
The company also takes loan from its directors. There is a phenomenol growth in management’s salary in 2022. any experienced investor can comment upon my view .
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Market growing at 23 % CAGR… not sure how reliable these estimates are. But nevertheless, looks to be a positive development for Sakar.
https://archives.nseindia.com/corporate/SAKAR_11052023113423_Announcement.pdf
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