Anuh pharma ltd

Stock Opportunities Untested - but worth a good look
90

AR23 notes

Financials:

  • Exports: 289 cr. (vs 228 cr. in FY22)
  • Foreign outgo: 281 cr. (vs 302 cr. in FY22)
  • Planned capex of 5 cr. for capacity enhancement. This will help them reach target growth rate of 15-20% in FY24
  • Other expenses breakup
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General

  • Want to increase margins through increase in exports and backward integration
  • Launched Vildagliptin in Q4FY23, which is a fast-growing Type 2 Anti diabetic product
  • EDQM restored all regulatory approvals for Erythromycin Base, Erythromycin Ethyl Succinate, & Pyrazinamide. Received CEP for Ambroxol Hydrochloride
  • WHO authorities have restored regulatory status for Pyrazinamide and Sulfadoxine
  • Approved by COFEPRIS, Mexico for Erythromycin Stearate, Erythromycin Estolate, Erythromycin Ethyl Succinate
  • USFDA approved Ambroxol Hydrochloride
  • Inspected by USFDA and passed inspection without any observations
  • Main focus for new products will be on lifestyle disease like Diabetes, Hypertension, CNS, and Dermatology
  • Company is on a look out for inorganic expansion through mergers or acquisitions which will allow rapid market access and build synergies
  • Expanding geographical presence with special focus on increasing presence in Vietnam, Japan, South Korea, Brazil and North America
  • R&D pipeline: Sitagliptin, Clotrimazole, Ticagrelor, Sulfadimethoxine, Citicoline sodium, Dapagliflozin, Canagliflozin, Empagliflozin. Have 11 new products
  • Planning to install greener technologies like briquette fired boilers, economizers etc. to save power and fuel costs
  • Remuneration taken by Ritesh Shah (63 lakhs vs 40 lakhs in FY22) and Vivek Shah (62 lakhs vs 42.5 lakhs in FY22)
  • Factory: Tarapur; R&D office: Navi Mumbai
  • Took approval of sales to S Kant Chemicals Pvt Ltd upto 100 cr. (did sales of 37 cr. in FY23 vs 34 cr. in FY22)
  • Employees: 159 (Average increase was 10-15%)
  • KMP remuneration decreased by (-12.5%)
  • Audit fee: 9 lakhs (vs 7.18 lakhs in FY22)
  • Share price: 77 (low), 109.9 (high)
  • Shareholders: 20’444
  • R&D: 3.54 cr. (vs 3.03 cr. in FY22). Largely revenue expenditure
  • Disputed taxes: 55 lakhs
  • Capex: 1.55 cr. (vs 1.61 cr. in FY22)
  • Investment in debt MFs: 50.34 cr. (vs 21.47 cr. in FY22)
  • Receivable from Related parties: 25.5 cr. (vs 9.14 cr. in FY22)
  • Promoter shareholding increased by 0.15% in FY23
  • Bank: HDFC

Disclosure: Invested (position size here, no transactions in last-30 days)

9 Likes
91

Posted pretty good set of number…

2 Likes
92

I have been a long time holder in this stock and will vouch that the promoters are only interested in making a fortune for their close family members …every 5 years they give bonus but other than that they have too much value unlocking possible but are reluctant to do that since they want to play under the hood. Many representations were sent to get themselves listed on NSE but they were least bothered.

1 Like
93

Anuh Pharma came up with another good set of results, with sales growing by 24% and EPS doubling. They are now guiding for 16% CAGR in their sales for next 5-years. I am sharing notes from their recent presentation.

FY24Q3

  • Planning to invest 20 Cr in existing site in FY25 for capacity enhancing by 70 KL

  • Focusing on deeper penetration in European markets

  • Added CEP for Ambroxol HCL (expected CEP for Allopurinol and Sulfadoxine)

  • Got Approval of Isoniazid from WHO PQ (TB product)

  • New product launches: Vildagliptin, Acebrophylline, Amodiquine, Moxifloxacin and Allopurinol. Expected to contribute 50 cr. in FY25

  • R&D pipeline: 6 new products in next 9 months

  • Guidance: 16% CAGR for next 5 years

  • Investing in solar power

  • Product mix: most growth was driven by acute portfolio

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  • Africa has seen a huge drop in 9MFY24

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Disclosure: Invested (position size here, no transactions in last-30 days)

12 Likes
94

This company recently came up in one of my screens, could you pls share what are the issues? Kindly elaborate if possible.

1 Like
95

How is fixed assets so low for this kind of pharma company? it has one of the highest Rev/FA ratio of 10x?

1 Like