Anuh pharma ltd

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

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

Posted pretty good set of number…

2 Likes

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

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

  • Africa has seen a huge drop in 9MFY24

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

13 Likes

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

1 Like

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

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Hi, any insights on how they will achieve 16% CAGR since no new CAPEX is there in balance sheet, also Q1 results are miss when sector overall is doing good

3 Likes

New Plant commissioned.
Plant - 3
In this regard, please take note that the new Plant is expected to be operational by December 2024,
and this will increase existing overall operational capacity by 400 MT/Annum.
Production capacity:
 Existing production capacity (approx): 1800 Metric Tons Per Annum
 Total production capacity after API-3 (approx): 2200 Metric Tons Per Annum
At the new Plant, the Company will install 53 KL Reactor Capacity.

Ref:

Disc: Restarted Tracking as this came up in one of my screens, 0.5% of PF. No investor presentations after Feb 2024.

1 Like

Today company released an investor presentation :wink:

You can refer it here
https://www.bseindia.com/xml-data/corpfiling/AttachLive/f259f5b3-39f4-4e71-bcd0-c8625d4cfd9e.pdf.

Last 3 years, stock price is lagging behind profit growth, but overall in line with profit growth, Positive Operating cash flow in the last 3 financial years. ROE is improving, dividend payout of 20.9%

Market cap now: ₹ 1,040 Cr. , Current PE: 17.61.

3 Likes

Anuh pharma came with a presentation after a year. They have commercialized their new capacity which now stands at 2200 MTPA. They seem to be getting more registrations in Europe which can hopefully drive margin improvement in the future. My presentation notes below

FY25Q2

  • H1FY25 exports were largely driven by Africa and ROW markets, Europe saw decline
  • Erythromycin drove growth
  • Capex of 20 cr. increased capacity from 1800 MTPA to 2200 MTPA (commercialized in November 2024)
  • New approvals: CEP from EDQM for Allopurinol (Anti gout)
  • Registrations: CEPs: 8, WHO Geneva Prequalifications: 4, NMPA (China): 3
  • Market share gains in recently launched products like Acebrophylline, Vildagliptin, Moxifloxacin, Allopurinol, Amodiquine hcl,and Sulfadimethoxine
  • Expect continued momentum driven by launch of new products like Dapagliflozin, Ticagrelor, Linagliptin, Acefylline piprazine, etc.
  • Customers increased to 360 in over 59 countries
  • Pipeline: Bilastine HCl, Pyronaridine Tetraphosphate, Vonoprazon Fumarate

They are largely into commodity APIs, their model is invest in capacity, then debottleck for a very long time, and only increase capacity sporadically. As their main end markets are unregulated or India, it requires lesser maintenance capex. They have always had the highest fixed asset turns, however their margins are also much lower than regulated API cos.

They are now increasing capacity more regularly as seen in the 22% capacity increase in 2024. Maybe management is becoming more growth focused.

Disclosure: Invested (no transactions in last-30 days)

5 Likes

ppt mentions 20 cr capex, however the same is not reflecting in the books?