Jagsonpal Pharmaceuticals(NSE: JAGSNPHARM) has been on a tremendous rise compared to other Pharma peers since last year, its price pattern also looks better compared to its peers.
Company specialises in developing and manufacturing bulk drugs and pharmaceutical formulations.The Company has a robust portfolio of drugs focusing on Women Health, Pain and Analgesics and General Medicine.
I am no Pharma investing expert neither have any knowledge about Pharma sector as whole, hence requesting inputs from members. their thoughts on why it is sustain these levels.
Since June 2020 it has given 1108% returns. If we compare since last year, still it has strongest returns of +135% compared to peers like Sun pharma(+27%), Vivimed labs(-56%) and Kopran(+20%). Quarterly growth on YoY basis does not look so enthusiastic:
Q4 YoY growth:
Revenue:+21%
EPS:-97%
Margin:-98%
For Q3,Q2(YoY) : Revenue growth seems flat at -4% and 5% for Q3 and Q2 respectively, EPS growth is flat for Q3(-0.48%) and up 82% for Q2, Margins up 13% for Q3 and up 100% for Q2.
Annual growth trend compared to last year:
Revenue:+20.20%
EPS:+15%
Margin:+3%
For Fy22Q4 YoY growth numbers, can you please explain if and how this line item resulted in bad bottomline growth? and what are the implications of it?
Nothing will happen. This is a mandatory open offer which was triggered due to promoter change.
There’s not much to say about jagsonpals history. There’s been no growth but it appears they have some good brands in gynaecology and ortho.
I am sure convergent has big plans but Investing here right now is just a bet on the new Jockey. No doubt the new Jockey has quite a reputation but what to expect going forward is a bit of mystery at this stage. I would wait for more details. Without details you don’t know if current valuations are attractive or not
Disc: Tracking
Does this mean the shares will be bought at predefined price of 235rs? But as its public offer, who will sell for lower price than current market price? Or they will need to readjust buying price at current market price?
You are assuming that some action needs to be taken in this open offer. lets take a simple example.Say i takeover jagsonpal where you are a minority shareholder. As the acquirer i am required to make an open offer so that you can tender your shares if you so wish to but Its not mandatory for you to tender your shares. In my case I don’t care what you do with your shares because the open offer was just something I was required to do by law. Needless to say there’s a lot more to it that I don’t entirely understand. This was just a simple example for you to get the gist of it.Read this document If you want to know more about open offer types, setting of price, etc 1503313163982.pdf (321.4 KB)
Interesting things have happened in the company post acquisition by Infinity holdings. Manish Gupta ex Sequent has joined the company as Md, Field force which at the time of acquisition was around 600 have increased to 900.
Company shared good presentation after Q1 results. Clearly the focus is on Dydrogesterone which is the fastest growing segment in Gynae. The market has opened up after patent expiry of Abbott and now its a 700cr market growing at 40% cagr !! Mankind was the first one to launch it in 2019…
is the growth sustainable or temporary?
The company outsources its products and so it is a light buniness model. you will not observe meaningful capex in the company.
i am not a expert in medical industry and that is why i require expert opinion in this company.
how is the company keeping its quality control if they do not manufacture the products themselves?
In Indian Pharma Industry, Average Yield per month is around ₹5Lakh => 60 Lakh per Year => potential of annual sales of 540cr.
Mr. Manish Gupta has ability to improve the capabilities of his team, but since last 2-3 quarters, company is facing challenges in top 2 brands for which they increased the capacity (field force).
Therefore average capacity utilisation (of sales team) can generate more than 2xTTM sales. PAT would be much higher in that case.
New launches (as planned in Q4FY24) may improve the yield of sales team.
