Good results by Vivimed.
If you see this quarter vs last quarter :-
Profit of 114 crores against 51 crores in Q3FY17. EPS of 13.74 this quarter against 6.19 in last quarter.
YoY (full year)
Profit of 221 crores for FY 16-17 against a profit of 83 crores in FY15-16
Full year EPS of 26.55 in FY16-17 against an eps of 10.02 last year.
Above numbers are consolidated numbers.
Others kindly give your comments and views on this.
The results are very good with amazing numbers. However, it includes income from divestiture the quantum of which is not known and is presumably one off. Also, the segment results of the specialty chemicals biz seem too good to be trueā¦
Right gourav. I hope there will be some clarification on the divestiture numbers. But i feel the numbers without the divestiture should be good.
Disclosure :- i am invested in vivimeds
Fundamentals canāt be pushed under for a long timeā¦I am waiting for a
sudden blast up !!!
Disc: Invested 2% of PF
In cases like Vivimed where the P&L account has suddenly become very attractive I think one should pay close attention to check whether market also shares this view. As of now it still remains in a downtrend and unless it takes out a previous significant top on high volume one cannot be really sure whether investor perceptions have changed. Just my views and contrary views welcome.
Best
Bheeshma
Ashish Kacholia had bought into a big block from an exiting
investorā¦That is the first sign of investor perception
changingā¦Ofcourse a big oneā¦And if i am right, the current market
price is lower than his purchase priceā¦
I looked at their last two quarters nos which seemed too good to be true coupled with very low valuations and looked like a screaming buy, but passed on it as I noticed few red flagsā¦
Next quarter is going to be good too as they close chennai plant deal with strides for 63 crores (closing in May/june) and additional 8-12 crores infusion from Strides.
Strides has bought 50% stake in there chennai formulation facility for co-manufacturing.
Disc: invested in Strides Shasun
They have made an agreement with Clariant india to sale some of their brands and they have got 375Cr for the same over phases as per the management concalls. The number 375cr could not be confirmed as somewhere in the concalls they are saying that the final transcation value was 325Cr. The agreement is such that they will still manufacture some products and Clariant will pay fees to Vivimed.
They also sold some products under Klar Sehen to Ordain Healthcare. Again the agreement is such that they will manufacture the products under Klar Sehen brands in their factories as ordain Healthcare does not have any manufacturing facility in India.
Some portion of this divestment will go in Debt repayment and some part will go to building new assets. The debt is going to get reduced substantially. Trying to assess that figure.
Deriving the figures from this divestment transaction is really tricky unless you get a proper response from management.
Again the sales in last two quarters Dec 16 and Mar 17 has shown an uptick but OPM has increased substantially. Is the divestment being shown here as Sales or is it the real sales happening of pharma products, need to find out. The management had indicated that the payments for above two transactions were received in the first half of FY16 as per the concalls. Then how the Operating profit has increased?
Regarding the pledging the management had indicated in the Sep 16 concall that the share will be unpledged in Dec 16 Quarter. Same didnot happened.
Disc: Watching closely
In M-17 numbers the footnote clearly says that income from divestiture is recognized and there is no entry for exceptional or other item.
For M-17 and D-17, YOY sales have increased but Material Cost and Employee Cost as a percentage of sales have decreased significantly. This makes me doubt that income from the divestiture is recognized as operating income and therefore OP is inflated and not sustainable. One may confirm the same from IR of the company.
Disc: No Investment
Yes it is mentioned. but what is the amount that is not disclosed.
Thatās what makes it a suspect and a potential red flagā¦
I am researching this stock in Oct 2017 because of its low p/e.
The sale to clariant chemicals is of 380 Cr which used to generate 10% of FY15 revenue (138 Cr). This did not go into other income.
Net debt is 697 Cr + 39 Million overseas debt raised recently (Slide 29 - Quarterly report)
Can not understand 90 % pledge by promotors to BBR projects PVT LTD.but the promoters of both companies are same.
i am not following Vivimed right now.
I did a high level analysis of this Company in Dec, 2017 and did not consider it worthy of investment.
Following are the red flags / concerns due to which I rejected it at an overview level itself and did not proceed to do a detailed analysis:
Any latest updates on vivimed labs. Kindly share any information
Vivimed Labs | Company received approvals for 2 ophthalmic products and 2 oral liquid suspension products, and expecting 5 more approvals in ophthalmics and oral solids in Q4 CY 2020.
Any news on further approvals
The momentum is quite bullish
Is there any news of PE fund buying
Request to inform any updates
