Marksans Pharma- Can it be the next Pharma Biggie?

AFAIK nothing has changed. Exchange Regulators can put any smallcap stock under surveillance. No change to fundamentals or business reported by the company. Punters may be taking it for a ride. FII/DII stake has increased from last few qtrs and Public holding has gone down.

Disc: Invested. 65% Of my PF from lower levels.

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What cud be the turnover for FY 25 and FY26 taking into account the additional contribution from their newly acquired TEVA facility in Goa. ? They have good cash on hand and can come up with more Teva like acquisitions.

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Excellent Results .

Q3FY24 Financial Highlights
:black_small_square: Operating revenue was Rs. 586.1 cr., up by 22.2% YoY driven by market share gains, new launches, the addition of new customers, an increase in our share with existing customers, and incremental contributions from the acquired Teva facility.
:black_small_square: Gross profit was Rs. 313.3 cr., up by +30.4% YoY with a Gross margin of 53.5%.
:black_small_square: EBITDA was Rs. 133 cr., grew by 73.6% with an EBITDA margin of 22.7%
:black_small_square: EPS grew by 17.8% YoY to Rs. 1.84

Business Highlights
US Market
:black_small_square: US & North America Formulation business reported growth of 15.8% YoY to Rs. 673.1 cr.in 9MFY24 on account of new product launches and also due to an increase in the share of existing products.

UK and Europe Market
:black_small_square: Revenue of Rs. 710.2 cr. from the UK and Europe Formulation business in 9MFY24 as compared to Rs. 561.3 cr. during last year, registering a growth of 26.5%.

Australia and New Zealand Market
:black_small_square: Australia and New Zealand business reported Rs. 155.5 cr. in 9MFY24, which grew by 6.4% YoY, due to incremental market share.

RoW Market
:black_small_square: RoW business reported Rs. 78.5 cr. in 9MFY24
Other Highlights
:black_small_square: In 9MFY24, the capex incurred was Rs 160.6 cr. Capex investment is in line with plan for scaling the acquired manufacturing unit from Teva Pharma in Goa which will drive future growth.
:black_small_square: Cash Balance at the end of 31st December 2023 is at Rs 688 cr.
:black_small_square: In 9MFY24, Cash from Operations is at Rs 169.0 cr. and Free Cash Flow is at 8.4 cr.

4ef86101-8fef-4acb-8b5e-bb5b96d4ef63.pdf (bseindia.com)

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Hello boarders. I have been with this stock with 3-4 years and i can say we have got a very solid managment team who are committed with the business. from this stand point we have a very long road to go, where we can see this company increasing profits y-o-y 25% for next few years. its already a 3 bagger for me, but what lies ahead is all the more exciting.

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100%. Management has been walking the talk the last 3-4 years.

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well in FY25 the company expects minimum 600cr revenue from teva facility

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Highest ever quarterly sales at 586 crores.

US market grew by 16 % QoQ

Filed DMF for one products and planning to file another DMF for backward integration this quarter.

Cash balance at 688 crores

Consistent improvement in gross and EBITDA margins.

Teva facility is yet to break even. Operating leverage will kick in once sales increase at Teva facility. Expecting more contribution from Teva in Q4. The company seemed confident in future growth.

Expecting 600 crores sales from Teva facility in FY 25. Management sees a lot of prospects in US markets. Mentioned that they had just touched the tip of an iceberg. Sees a lot of prospects in the US market. Focussing on cough, allergy, digestive and cold OTC markets.

Spent 29.4 crores on R & D which is 1.8 % of sales.

Capex of 160 crores for the 9 months. Expecting a total capex of 250 – 300 crores over the next 2 years including the cost of acquisition of Teva. Nothing concrete on acquisition in Europe.

In US, the flu season starts in winter and a part of the QoQ growth could be attributed to this.

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