pretty high % delivery nos. for the past 1-2 months. Lets hope results are good and that the momentum continues…
HG,
liquidity is very poor in shilpa medicare and hence there will be very little trading activity in such stocks.
results i expect to be good looking at the momentum shown in last two quarters but since very little is known about the company it is difficult to make a guess.
Any idea about the results date?
Hi Hitesh,
Seems the pattern has not played. Shilpa is a sell now. What is your view??
ya, something seems to have spooked the stock. Results on Feb 11. Even I am undecided what to do…but am tending towards capital preservation.
tony,
it is difficult to make out things in very low vol stocks like shilpa. h&s pattern seems to have failed.
I would like to take a call after the results on 11th.
Yes. In future we should keep this point in mind, about low volumes. Some charts do fail at times. I too am waiting for the results and then take a call. Thank you for your feed back.
Hi Tony,
I refer moneycontrol to check for announcements and corporate action to know about the date of results. I could not find the results date for Shilpa there.Please let me knowas to where you are getting this info.
knowas
You can also look at BSE results calendar. it is mentioned that results are today.
shilpa medicare has come out with good results for q3 fy 13.
qtr q3 fy 13 q3 fy 12 9M fy 13 9M fy 12
sales 94 84 273 223
NP 12.7 6.1 34.8 24.8
9M fy 13 eps (not annualised) 14.2
Above numbers are consolidated numbers.
Yes its a hit, Hit Ji!
Total Income up 12.2% to 94.04 Cr from 83.79 Cr.
EBIDTA up 56.3% to 16.8 Cr from 10.75 Cr.
Net Profit Almost doubled to 12.74 Cr from 6.41 Cr.
EBIDTA margin is 17.9% v/s 20.3% (SQ-12) and 12.8% (DQ-11)
NET Profit margin is 13.6% v/s 12.6% (SQ-12) and 7.7% (DQ-11)
Total Raw material costs as a %ge to Income is 57.4% v/s 60% (SQ-12) and 60.9% (DQ-11)
Employee costs to Income is 12.4% v/s 12.4% (SQ-12) and 11.9% (DQ-11)
Other expenses to Income is 12.3% v/s 7.4% (SQ-12) and 14.3% (DQ-11)
Tax Rate 2.3% v/s 25.5% (SQ-12) and 21.1% (DQ-11)
Lower rise in Raw material costs and 3% decrease in other expenses helped EBIDTA.
Steep fall in tax incidence helped Net profits to double.
9M/Fy-13 v/s 9M/Fy-12:
Total Income up 22.1% to 272.8 Cr from 223.36 Cr (Fy/11-12: 318.18 Cr)
EBIDTA up 32.8% to 51.85 Cr from 39.05 Cr (Fy/11-12: 60.64 Cr)
Net Profit up 40.3% to 34.83 Cr from 24.83 Cr (Fy/11-12: 41.41 Cr)
Tax Rate 17.4% v/s 25.8%
Reported 9-month EPS 14.2 v/s 10.12 (Fy/11-12: 17.16)
On 11/02/2013, stock on BSE Closed at Rs. 255/- Down 4%
(Results updated after market hours)
Hi Hitesh,
With results being track, is this good to accumulate at current prices?
)- HG
Shilpa Medicare reported results today. Consolidated nos - Income grew 28% to 113.69 cr. while net profit grew 58% to 16.93 cr over June’12 nos.
Hitest, Ayush - request your views on this company for the next 1 year. I was going to get out of this to invest in some of the other discussed names but the results are making me think again.
thanks,
HG
HG
Shilpa has come out with excellent set of results for q1 fy 14… I guess with the kind of sales and profit growth shown it makes sense to stick to shilpa and even add on declines.
regards
hitesh.
It all depends on the Time Horizon. If you have a 2-3 year time horizon this is a good buy at current levels. We are expecting muted results in the interim, but Q1 results are amazing!
From what we understood from Shilpa’s AGM in July:
Factory is world-class. Management seemed very astute, down-to-earth, committed to do something different than run-of-the mill. There are multiple drivers which will kick in in 18-24 months time. First off-the-block will be the Oncology Formulations contract manufacturing. As soon as USFDA approvals are received CRAMS will start. contracts are in hand already. Next will be the Italian JV product - which is a smaller market but high-margin exclusive kind of product. The new acquisition will start making tangible additions to topline. Company’s BS is pristine and funding growth strategy is very prudent - though it leads to periods of consolidation - as evidenced in last 1 or 2 years.
For someone with a long term view, this is another good prospect to have among emerging Pharma companies. We need to keep doing more work to establish more conviction in its prospects.
Hitesh, Donald - thanks for the replies. Donald - appreciate your insights since there is not much recent information I could find in the usual places.
)- HG
I am still reading up on the story, so I don’t have any comments on the business as yet.
But, just checking the numbers on this one for the latest quarter.
Other income is about 4.5 cr instead of the usual average of about 1.2-1.4 cr.
If I deduct 3 cr of other income (I don’t know the nature of this other income and hence can’t decide if it’ll recur or not - mat credit is just 1.7 cr (will this recur?)), I will end up with an EPS of about Rs.4.73/-. It’s a good 24% growth in EPS from last year, but not as blockbuster as on a first-seen basis (80% growth in EPS).
Finance costs have doubled (but that’s presumably due to the 40 cr ECB loan for the new unit) and going by the track record of the mgmt, pretty sure they’ll aggressively reduce this.
So, why has other income increased by such a large extent -
a) They had cash of about 10 cr on B/S as on March 2013 - so, 10cr at even 10% FD interest for 3 months is around 30L.
b) Their current investments reduced by 10 cr as on March 2013 compared to last year. So, other income should actually have reduced (just a wee bit). But here, apart from the MAT credit, there is still a difference of about 1.3 cr.
Where is this coming from? And will this be recurring?
If its not recurring, I am not sure if you can factor it in the regular EPS calculation and project it for the entire year.
Let me know.
Hi,
The results look great on the face of it but few things to note:
1). The standalone results this time include nos of a subsidary which has been merged. Hence better indication is consolidated nos.
2). There is a bit of other income - which may not re-occur
3). The tax also seems lower due to some MAT adjusted for earlier.
4). EPS is on pre-bonus equity
Some of the positives for me:
1). The margins have increased quite a lot and if they sustain, the co should do great
2). There has been decent growth (i was not expecting much growth)
@Kiran - The amount of loan they have is balanced by cash on balance sheet and invested (about 70 Cr) and hence other income may be due to that.
Like Donald mentioned, I have been tracking this co for quite sometime and seems to be a very high quality co to me with a big potential over a longer term.
Ayush
Thanks Ayush for the update. Yes the growth is encouraging!
I must try and find time to capture in bullets atleast some limited interaction that we had at AGM that showed glimpses of the picture that lies ahead.
This might energise folks like Kiran to come on the same page and work hard at establishing more facts/pointers for building greater conviction/otherwise in the business.
Went through last 5 ARs… Some questions from my side-
- Oncology seems to a high growth segment but Shilpa’s historical performance has been quite volatile… Only 12% 3 yr sales CAGR, PAT CAGR is even lower. Why?
- What is going to change for next 2-3 yrs which makes us bullish on this one?
- They have taken ECB last year. Now due to INR fall, ECB will hurt Shilpa. No?
- WIP has “projects under erection” worth 89 crs. What is that? How much revenues & profits can that project generate?
- With okish ROEs, Poor Dividend Yields & pay out ratios, along with need of more & more money to generate higher revenues (that too own money) Shilpa isn’t looking attractive to me.
DonaldJi, Ayush & others- Requesting your views.
PS- This is the first time I am looking at Shilpa.