Strides Pharma Science

^I think I agree. Thanks for that Sumit.

Comparable pharma cos. by sale, Mcap and P/E -

Co. Name | Sales(Cr.) | Market Cap(Cr.) | P/E
Ajanta 1356.20 , 14789.32 , 47.20
Pfizer 1500 , 9694.88, 55.14
sanofi India 2021 , 8102, 41.8
Alembic 2056, 14300 , 50.25
Glaxosmithkline 2677, 28956, 68
Divi’s 3084, 26218.13, 31
Torrent 4653.00, 22668.65, 31.18

Strides in a couple yrs from now may have consolidated annual sales(after including Australia business and Shasun sales) of 4000-4500 crs as per estimates by analysts .
Considering Market Cap. at 5 times sales as the base case, it may have a Mcap of ~20,000Cr (Right now it is ~10,300 Cr after including Shasun), making it a potential doubler from present levels.

Disc: Views maybe biased as I have entered in the stock.

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How much time does High court approval take?

Sun-Ranbaxy merger took 11 months from merger-announcement sometime in april-2013 to march-2014 when the court approval came. And Strides-shasun merger was announced in Sept-2014.

Going by above, the approval should be coming in a month or so. Shasun is quoting at 3-4% discount to Strides as per the 5:16 swap ratio. (I bought Shasun to buy the proposed merged entity).

Just in …

“Shasun Pharmaceuticals Limited has informed the Exchange that the Honble High Court of Judicature of Madras has sanctioned the Scheme of Amalgamation with Strides Arcolab Limited pursuant to its order dated June 16, 2015. Certified copy of order received on July 22, 2015.The Scheme of Amalgamation will be effective on receipt of the approval from Honble High Court of Bombay, Foreign Investment Promotion Board and other approvals as may be required and on filing of a copy of the order of Honble High Courts with respective Registrar of Companies.

Strides Arcolab Q1 net zooms 2.20 times

See more at:
http://www.myiris.com/news/company-results/strides-arcolab--quarterly-net-zooms-2.20-times-/20150730133111199

ArunKumar confused the market by saying “In version 2 of Strides, we focus on achieving key strategic and operational goalpost. Quarterly performance is not a guidance of near term financial results.Having stated that Q1FY16 was a challenging quarter for the business mainly led by a subdued performance in our emerging market operations in Africa,” he further said Strides Arcolab would continue to ramp up R&D initiatives with focus on building a disruptive model, Kumar added.

Read more at: http://www.moneycontrol.com/news/results/strides-arcolab-q1-net-more-than-doubles-to-rs-42-crore_2234761.html?utm_source=ref_article

Otherwise, why there was zero reaction, when the result came out at 2pm, well before 3.30 close
disc…invested…views biased

@KS16, what Arun Kumar said, made perfect sense to me. He is a first generation entrepreneur guy with unparalleled wealth generation and wealth sharing track record. He is young (as compared to average CEOs/promoters), has a vision/passion for taking strides to new high. Quarterly variations are not the correct milestone for such promoters. When one find such awesome promoter, moving to partnership mode makes much better sense to me.

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results are not great, sales have hardly increased and profits are due to other income may be due to interest income. Operational performance is dull that’s why he wrote such a press release. Only good thing is that they have maintained EBITDA margin. Fx fluctuations will increase going forward and hurt its emerging market biz further. It needs to jack up regulated market biz fast and may Shasun merger will help.

Strides Arcolab gets USFDA approval for Benzonatate Softgel Capsules,Market share of USD 41 million as per IMS data

Dear VPians, pls validate this.

As per screener, the stock is trading at 77 PE, the promoters stake is just 27.5% - half of which is pledged. This is absurd valuation. But Moneycontrol shows it available at 14 PE.

Disc : Not invested, but tracking and very much interested.

Not helpful to track PE since reported EPS has lots of noise i.e. one-off items. They report adjusted EPS which can be used to some extent. Real promoter stake will be 30%+ after Shasun merger but how is it critical for the investment?

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Anybody attended AGM? any new insights?

Bombay High Court approved the merger of Strides and Shasun companies.

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Strides completes acquisition of Aspen’s generic biz in Australia.

The acquired business will be integrated and consolidated with Strides effective September 1, 2015.

Two back to back good developments. Depreciation of AUD will hurt them marginally which should get compensated by develop world formulations.

Another acquisition. This group seems to be on treadmill. On a lighter note I think Mr Arun Kr. should start a boutique investment firm or pvt. equity. :wink: As an investor I am not complaining yet.

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The latest acquisitions will add around 90 crore to the topline http://www.moneycontrol.com/news/buzzing-stocks/strides-arcolab-jumps-4-acquires-sun-pharmas-cns-biz_3169541.html

this acquisition could be good in the longer run. However, in the immediate future the challenge is going to come from its significant emerging market exposure. This part of operations will face huge fx pressure in the coming months due to fed hike or overall eco weakness and that is keeping the market edgy. Even Australian exposure will face currency challenges due to commodity weakness but it can be hedged by moving manufacturing to India over the next one year. Only thing can save them is faster rump up of developed world formulations.

Will shasun delist once the merger completes or will it continue to trade on the stock exchange ?

Obviously, it has to merge and shareholders will get Strides shares in ratio announced.