Even I’m worried about so much fall…though company is making all positive moves…be it related to approval from USFDA OR dominance in Australia…probably @Wolf can give us some insight…or @hitesh2710 sir can help…considering his comments on pharma sector in general
debt is definitely a concern along with so many mergers and de-mergers…looks like they are overdoing it…(recent one being merger with Apotex in Australia)… will for results on 18th May
Yes, More than Business Man they seems to have taken position of Deal Maker.
As we do not invest for this capacity of promoter, it becomes mismatch.
Also i hv personal doubt about their focus on business as it seems day and night they are busy in buyout or sell or demerger or merger!
Based on today’s massacre…hats off to you!! you are visionary…and I’m chopped 
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another bummer …“Divestment of Strides Chemicals Private Limited”… STRIDES looks like a broking company for mergers and demergers
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Strides Shasun seems to be in a firm bear grip. I am not sure how the next two quarters may pan out. After the constant hiving off does anybody see value in the remaining business. Can they pare down debt and return to profitability ? I would like to hear some view points on what went wrong . This stock was in a glorious bull run from 2011- 2014. Nothing could go wrong. Can the management turn it around?
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I believe these are the key take aways from conf call (attended partially as well)
- Africa (maleria business ) has shrinked from 35M to 15M
- partner business in US did not play out the way it was expected to… (partners lose their market share and hence strides sales were affected)
- Focus would be to build B2C business…no partners in future
- US market is significant and would be the high focus area to capture sizeable market share
- Australia market is playing out well as well
- No plans for debt reduction ( 38Cr is debt service cost)
feel free to correct/update.
thanks
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I just checked the screener and was surprised to see that company’s Market cap is below the total debt…then just to cross check I went through the quaterly results I’m not sure how screener is calculating 3700 Cr debt @ayushmit @pratyushmittal
ICRA report on Strides debt:
Outlook: Negative
ICRA expects the pricing pressure prevalent in the US market across the industry to affect SSL’s business prospects going forward as well. The outlook also reflects the high debt levels of the company with total debt of Rs.2,528.4 crore as on March 31, 2018 even while large part of the cash-backed loans had been prepaid during FY2018. The company’s TD/OPBDITA and Adj. Net Debt/OPBDITA stood at around 5.8x and 4.0x respectively as on March 31, 2018 and continue to remain high as compared to medians for the company’s rating category. The outlook may be revised to ‘Stable’ or ‘Positive’ if higher than expected revenue growth and profitability strengthens the financial risk profile._Credit_Perspective_GetRationaleFile_70399.pdf (192.9 KB)
Summary of troubles and hope of ray…
Conf call on Oct 31, 2018 from 3:00 PM
Good set of numbers though… https://www.bseindia.com/xml-data/corpfiling/AttachLive/13c71252-fae4-4a22-99a8-c129a570a61b.pdf
I f they come out with a plan to address debt and pledge one can start looking at this company.
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Good results.Growth coming from all geographies. Q1 EPS 8.8 vs .9 QonQ n 5 Yon Y. Debt being reduced. Reasonable valns. Both EPS & PE shud increase which has corrected a lot from ATH… tailwinds quite strong. Hv a look at its PPT
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https://trendlyne.com/research-reports/stock/1291/STAR/strides-pharma-science-ltd/
MOSL GIVES A TGT OF 650
MOTILAL OSWAL
We roll our price target to INR650 on a 12M forward SOTP basis (8x EV/EBITDA for the US / Other Regulated markets, 6x for Emerging Markets, and 5x for Institutional). Considering this and its increased market share in commercialized products, we expect US sales to revive and exhibit a 6% CAGR to USD270m over STR recorded the highest ever quarterly revenue of INR2.6b in the Other Regulated market, implying growth of 53% on a YoY basis in 1QFY21. We expect the business to exhibit a 23% CAGR in sales to INR12.6b over STR exhibited 17% YoY / 47% QoQ growth in the Emerging Markets business, led by an increase in primary sales in Africa. in Other Regulated and 52% sales CAGR in Emerging Markets, supported by our price target to INR650 on a 12M forward SOTP basis (8x EV/EBITDA for US / Other Regulated, 6x for Emerging Markets, and 5x for Institutional)
