hitesh bhai,
is there some website where one can know when, which company is holding its concall and what are the concall nos ? also the ppts/pdf that are used for such concalls
Hi Amey,
Have a look at researchbytes - great site for all updates on a com.
Cheers
Vinod
Hitesh, which one would you suggest among Unichem and JB chemical at current prices for 2-3 years perspective? JB chemical has about 500 crores of Cash+investments while its market cap is 600 cr. Looks verylucrative. Would appreciate your suggestion.
verylucrative.
Unichem
Thanks as always Hitesh!
verylucrative.
Unichem
Appreciate the way hitesh bhai answered - just one word !
Hiteshji,
What is the ideal PE multiple at which we can say that Unichem is fairly valued ?
Regards
I think 15-20 PE trailing earnings.
If it can get things on track for a few quarters, and start showing consistent growth it can fetch multiples in higher range of 18-20 bcos of its debt free status and the fact that company has completed all its expansions.
Report by fullerton Sec on Unichem-
Unichem Laboratories Limited (Unichem) is an integrated pharmaceutical company with strong presence in domestic formulations market. The company enjoys strong foothold in the chronic segment having leadership in cardiology and neurology segments. It has demonstrated its ability to build large brands in growing categories (like its `1.6bn brand -Losar in cardiac care) by retaining prescribers and generatingnew prescriptions at family physician level.
InvestmentRationale
ï* Domestic business growth which slowed down in FY12 has revived in 9MFYâ13 led by various initiatives taken by the company suchas increased focus on prescription generation, strong addition tothe field force, developing second-tier of major brands and changein the distribution model. The company is also developingdermatology & gynaecology portfolio through addition of newMRâs. We believe the growth momentum to continue and revenueexpected to grow at CAGR 18% for FY12-FY14E.
ï* Unichem is expected to enhance presence in US on back of newproduct launches, despite being the late entrant. It has filed for27 ANDAs till date and has 11 approvals of which 9 are launchedin US. It has guided for 1-2 filing per quarter in US going ahead.
ï* Significant capacities at Ghaziabad, Sikkim and Baddi placesUnichem in a better position to attract contract manufacturingagreements with MNCâs from its facilities. Contract Research andManufacturing Services (CRAMS) as a segment could be a bigopportunity for the company and one new contract expected inFY14 would spur growth next fiscal.
ï* Unichemâs debt free balance sheet enables it to explore neworganic and inorganic growth opportunities. The sale of MadhyaPradesh based new formulation manufacturing facility to MylanLaboratories Limited (Mylan) for a total consideration of 1.6 bnwill further bolster the companyâs cash position. Revenues andearnings are expected to clock 19.5% and 43.7% CAGRrespectively over FY12-14E, with an EPS of16.3 in FY14E.
Key Risk
ï* Break-even of Niche Generics Ltd (UK Subsidiary) and UnichemPharmaceuticals USA Inc. (US Subsidiary) has been delayed dueto lower growth in European market and delay for approvals byUSFDA in US market. However, we believe both the subsidiariesto gain traction over the next two years with number of productslined up for approvals.
Valuation
Unichem has taken the necessary steps to revive the domesticformulations business which would fuel the future growth. Continuousfield force addition has turned productive during the year. At the CMP,the stock is trading at 10.3x FYâ14E earnings and looks attractive,considering its balance sheet strength. We recommend a BUY with atarget price of `212 based on 13x FYâ14E earnings.
Considering it will clock close to 15 EPS for fy13 isnt 16.3 a conservative estinate for fy14??
-Losar generatingnew
InvestmentRationale
ï* 9MFYâ13 suchas tothe changein developingdermatology newMRâs. revenueexpected
ï* newproduct for27 launchedin
ï* placesUnichem manufacturingagreements with MNCâs andManufacturing bigopportunity inFY14
ï* Unichemâs neworganic MadhyaPradesh MylanLaboratories bnwill companyâs andearnings CAGRrespectively
ï* UnichemPharmaceuticals dueto byUSFDA subsidiariesto productslined domesticformulations Continuousfield CMP,the FYâ14E attractive,considering atarget FYâ14E earnings.
Added some unichem recently
Excel,
What is the motivation of buying unichem at this stage? It has hardly rallied with market. It seems market is giving cold shoulder to unichem.
Hi Nani,
one had to be patient with such names. It did not fall much when others were falling.
I think market can not ignore delivery of good numbers for long.
I have been holding this name since 2009 and have been rewarded amply till now.
FY14 should also be good in terms of growth delivery. Here I am relying on Hitesh bhai’s assumptions.
Regards,
Added some unichem recently
Report from karvy–
Domestic Formulations on a growth path;
Reiterate BUY
We recently met up with the Management including CEâDomestic
formulations to know more about the Companyâs strategy and growth
prospects for domestic formulations business amid slowdown. On the back of
multiple perceived positive triggers, we reiterate âBUYâ recommendation on
the stock.
Industry Slowdown â Due to High Base Impact: The lower growth in the
industry can be attributed to high base impact last year and the shift to
combination therapies in the chronic space, which is eating into the growth in
the chronic area. IMS & AIOCD are pegging the growth in excess of 12% for
FY14.
Growth Strategy â Focus on Productivity: Unichem plans to increase the
productivity per MR with focus on segments like CVS, Diabetes, Antiâ
infective, CNS & Adjunct therapies. The Company will also try to rampâup
products in Rs. 30 mn brands to Rs. 100 mn brands in next couple of years.
The Company is confident of achieving 300â400 bps growth, which is higher
than the industry growth.
Multiple Positive Factors â Margin Accretive: The Companyâs focus on MR
productivity as it has reached optimal MR strength will augur well for the
margins of the company. Shift of generics business on cost + profit basis to
another entity would enable Unichem to minimize the loss. Moreover, focus
on institutional generics business would augur well for the Company, going
forward. Again shift from distributorship to C&F model in a span of 18
months will be margin accretive to the Company.
Outlook & Valuation
We factor lower traction in domestic formulations space after factoring Rs. 180
mn as impact of the New Pricing Policy. Scaleâup in the US business,
breakeven in Niche Generics and possible new contracts for CRAMs business
are triggers, which will evince renewed interest in the stock. We reiterate
âBUYâ recommendation on the stock and we maintain our target price of Rs.
228 per share based on 12.x FY15E.
Results/dividend to be announced on 11 may according to a company announcement.
Result is out.
Q4 EPS 3.43
Fy 13 EPS standalone : 14.33 and consolidated EPS : 12.52
Div 4.5 rs. so total div for fy 13 : 3rs + 4.5 rs = 7.5 rs
good divident.
Thanks Suresh. Why the consolidated EPS is lower any idea on this?
May be subsideries still making loss… not sure about this…
The divident i mentioned as 7.5 rs for whole year is wrong… it is 4.5rs for this year. 3 rs is for last year… 50% increase in div and more than 50% increase in profits.
** Fy 12.52 **
consolidated revenue at 1080 vs 803 standalone.
NP, however 113 vs 129 stand alone.
So the subsidiaries are still making losses and have not become profitable.
The management was expecting the subsidiaries to be profitable in this year, but it seems otherwise and this is not encouraging.
Once this becomes profitable, it should be even better than this.
dividend has been increased by 50% to 4.5
14.33 rs eps (standalone) is good and also they have hiked the dividend from 3 to 4.5 rs, they have been buying from the market, expansion completed. i think next year will see better growth.