I would like to know your opinion on the recent results? The standalone results are great, but what do you infer from the falling consolidated profit?
Does anyone has prepared highlights for the recent concall ? If yes then pls share.
Also seems like Marksans is penalised way more than other pharma stocks when the issues are centric to the overall industry. Alongside the CMP is way more attractive in terms of valuation(both historical PE average) and PEG basis. Long term fundamentals are not changed at all. Seems a good time to start accumulating with a long term view(2-3 years at least). Whats everyone’s view ?
I joined the concall but did not prepare any notes. But below are some of the points I can recall:
- Fuel, Freight Cost has affected the margin slightly in this quarter. Its not too bad IMO.
- Mark said he is expecting correction in Fuel and Freight cost but 3rd quarter may not be very different.
- He is confident of achieving the target of 2000CR topline by 2023/24.
- He is expecting approvals on some of the ANDA’s filed in 6-12 months time.
- They have hired sales/RnD guys in US and India, gave increment to existing staff which resulted in higher employee cost in this QTR.
- Orbimed is actively consulting and guiding them on strategic front.
- Current utilization has been 75-85% if I recall correctly.
- Cash of about 300+ Cr.
Thanks
With current cash and cash equivalents of Rs 320 crore, along with expectation of a further Rs 280 crore coming from the exercising of warrants by Orbimed and promoters, market cap of Rs 2400 crore seems extremely pessimistic and factors in no earnings growth over next few years.
Am I missing something here?
I believe Orbimed will exercise some (if not all) of the warrants since they have nominated a member of their senior management to the Marksans board, demonstrating their commitment to this company long term.
Evaluating this for investment.
I also have same view. Keep accumulating and have patience.
Need to see pricing power of the company. My main thesis was higher proportion of softgel offerings which are niche and relatively lesser pricing erosion in OTC drugs should give good control on pricing to marksans. This has not been the trend for last 2 Qs. In the latest concall as well Mark was not very upfront related to pricing hikes. Any views on this ?
Added second trache at 58.45 in my wife portfolio on last trading day of global selloff due to new variant emerging from south Africa. Will wait for atleast 5 years.
I noticed one thing about pharma industry that OTC i.e.over the counter drug have better pricing power than prescription drug. Shopkeeper donot give any discount e.g. 10% or 5% cost of medicine on OTC drugs in comparison to Rx drugs. Why is so I am trying to understand?
Does anyone have any idea on how to get the market size of any drug for a particular country?
TIA
Loperamide is OTC drug which is used to treat acute and chronic diarrhoea. I don’t know about is market size. May be any senior members of forum can guide newbie investor like us.
Loperamide had a market size of $9.7m In 2015 in US according to Aurobindo. So compared to that, UK market will not even be 40%.
So best case scenario will be a market size of $4m roughly.
Where to find such details? It will be learning for us if you share such details.
Thanks in advance.
Final Approval from USFDA received. Movement is happening and as Mark said ANDA approvals have started coming in…
Does anybody know the market size of drug launched by Marksans. Currently this drug is not available in amazon in usa.
Results - Slight dip - Margin hit
Q3 - Result
Investor Presentation
Result update: Slight dip in margins due to continued high transportation cost and raw material cost.Imo Margins can improve further with the completion of API brownfield expansion in Goa facility this year. listened concall to read the mind of Mark Saldanah but it seems he remains very lip locked. Disclosure: Invested from 64 levels.
Thanks for the update @thakurvi. I too get the feeling that Mark is very tight lipped and is not willing to disclose much on their expansion/acquisition plan. He is giving only well known facts to the investor’s which as an investor is very frustrating. Moreover most of the answers were from Jitendra Sharma (CFO) than from Mark.
But I have been invested in it for over 7 years now and plan to hold for another 10 years if I see some activities happening in the next few quarters, else will look somewhere else.
They are planning for acqusition of USFDA Plants and/ or product to cut short time. They have mentioned in presentation. But management will not say at present . Once get finilised, Management will come out. disclosure : I AM HOLDING it.
Can u share the details in which it is said clearly in presentation?I do not find such details in latest presentation or may be I am unable to read between the lines.Anyway it would be helpful If you help us.