Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Results above expectations During Q1FY12, the company’s revenues grew by 46% YoY and 6% QoQ at Rs.158.6 crore. This was on the back of increase in revenues from the existing clients in both segments – SCM and lifesciences. EBDTA margins remained flat YoY while they moved up 190 bps at 21.5% during the quarter. PAT moved up 50% YoY, 5.5% QoQ at Rs.21.6 crore. This was lower due to higher tax rate. EPS for the quarter stood at Rs.1.8
Operating Margins to improve
EBIDTA margins remained flat at 21.5% YoY during the quarter. The vertical mix of the company in FY11 was of 53 : 41 of SCM and Lifesciences respectively. However, post WCI acquisition, revenues from lifesciences segment would move up to around 55-60% where they have higher margins of ~26-27%.
Geographical concentration to widen
The company drew 65% of its revenues from U.S.A. Post WCI acquisition, Take has entered into European markets where their synergies would bring in better geographical mix for the company. This would reduce dependence of revenues from USA.
Healthy OrderBook
The current orderbook of the company stands at USD 72.5 million which has moved up by 40% YoY. The strategic acquisition of WCI has widened the product portfolio for Take sol and also opened up newer markets.
Guidance from the company
The company has given guidance of 6-7% QoQ growth for the next 2 to 3 quarters. WCI is expected to post better results in 2nd half of the year. For the whole year it is expected to contribute ~ Rs.90 crore to the revenues. EBIDTA margins are expected to move up in the range of 22-23% for the company.
Valuation & Recommendations
At the current price of Rs.34.5, TAKE is trading at a PE of 4.8x FY12 estimated EPS & 3.59x FY13 estimated EPS. Considering the current global meltdown, we are assigning a lower target PE multiple of 6.0x (against earlier 7x) and arrive at a target price of Rs.43 per share for TAKE indicating a potential upside of 25% from current levels. We recommend to HOLD the stock.
Performance Analysis TAKE’s revenues grew 6% QoQ and 46.3% YoY to Rs. 158.6 Crs in Q1 FY12 boosted by large orders from existing clients in Life sciences and supply chain management business and strong traction from USA and Asia. WCI revenues on a QoQ basis was marginally negative in Q1FY12 and would be the same in Q2FY12 due to economic instability in the region . However, WCI is expected to do well in Q3 and Q4 of FY12. The company reported EBITDA of Rs. 34.1 Crs in Q1 FY12 as compared to Rs. 29.4 Crs in Q4 FY11 and Rs 23.3 Crs in Q1 FY11. EBITDA margin grew by 184 bps QoQ and was flat on a YoY basis TAKE reported net profit of Rs. 21.6 Crs in Q1 FY12 which was a 5.5% growth on a QoQ basis and 50.4% growth on a YoY basis. Company’s EPS increased to Rs 1.80 in Q1 FY12 from Rs.1.70 in Q4 FY11.
New launches Take released Xtended Process Control (X.PC) 5.8 supplier relationship management system. This advanced version progresses purchasing cycles by offering new vendor-managed inventory and new features that provide external suppliers full-visibility into inventory levels across warehouses and external depots which helps suppliers to automatically manage and replenish materials to reduce inventory overage and ascertain products are received on time.
TAKE launched Insight Sfx solution for pharmaceutical companies with a workbench to analyze Activity vs. Outcome, giving them a greater insights & in- depth visualization of their sales force’s effectiveness.
Business Overview
Life Sciences business
Life Sciences business showed good orders and execution in Q1FY12 and ended the quarter with an order book of USD 41.4 mn. Two new clients were added in LS business. The business had also been able to increase its business position in USA and Europe. From the WCI acquisition front, the integration of both companies is progressing as per plan. TAKE and WCI’s offerings are driving a significant increase in new opportunities for the company.
Supply Chain Management
Q1FY12 has been the best ever quarter for SCM business showing 9% growth on a QoQ basis and contributing 44% to the total revenues. The SCM business business closed the quarter with USD 31.1 mn. Four clients were added during the quarter.
Business Outlook
Take Solutions operates in a niche area of Life sciences where it has very few competitors like Octagon Research and Oracle acquired Phase forward in the US.
Unlike competitors, Take solutions is offering products right from clinical research to patient safety and business consulting. Take has a wider product portfolio to offer against its competitors.
Take is also planning aggressively to develop solutions based on cloud computing platform primarily for the SME sector which will go together with their existing OneSCM offerings that is designed for large enterprises. The company plans to launch this new set of offerings within next two quarters.
Guidance
Management expects QoQ growth of around 6-7% for the next 2-3 quarters on the back of strong traction from the US and Asian region. For the whole year, margins are expected to be in the range of 22-23% and effective tax rate would remain at 20%. WCI:
o Management expects WCI to contribute around the 10-12% of the total revenues by end of FY12 and further more expect it to be contrubuting about 25% of the revenues over the next three years.
o WCI Consulting is expected to show a muted growth in Q2FY12. However, the synergies are expected to start showing results by Q3FY12.
o The acquisition of WCI Consulting contributed about 6.5% of Take’s revenues in Q1FY12.
Valuation & Recommendations
At the current price of Rs.34.5, TAKE is trading at a PE of 4.8x FY12 estimated EPS & 3.59x FY13 estimated EPS. Considering the current global meltdown, we are assigning a lower target PE multiple of 6.0x (against earlier 7x) and arrive at a target price of Rs.43 per share for TAKE indicating a potential upside of 25% from current levels. We recommend to HOLD the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Results above expectations During Q1FY12, the company’s revenues grew by 46% YoY and 6% QoQ at Rs.158.6 crore. This was on the back of increase in revenues from the existing clients in both segments – SCM and lifesciences. EBDTA margins remained flat YoY while they moved up 190 bps at 21.5% during the quarter. PAT moved up 50% YoY, 5.5% QoQ at Rs.21.6 crore. This was lower due to higher tax rate. EPS for the quarter stood at Rs.1.8
Operating Margins to improve
EBIDTA margins remained flat at 21.5% YoY during the quarter. The vertical mix of the company in FY11 was of 53 : 41 of SCM and Lifesciences respectively. However, post WCI acquisition, revenues from lifesciences segment would move up to around 55-60% where they have higher margins of ~26-27%.
Geographical concentration to widen
The company drew 65% of its revenues from U.S.A. Post WCI acquisition, Take has entered into European markets where their synergies would bring in better geographical mix for the company. This would reduce dependence of revenues from USA.
Healthy OrderBook
The current orderbook of the company stands at USD 72.5 million which has moved up by 40% YoY. The strategic acquisition of WCI has widened the product portfolio for Take sol and also opened up newer markets.
Guidance from the company
The company has given guidance of 6-7% QoQ growth for the next 2 to 3 quarters. WCI is expected to post better results in 2nd half of the year. For the whole year it is expected to contribute ~ Rs.90 crore to the revenues. EBIDTA margins are expected to move up in the range of 22-23% for the company.
Valuation & Recommendations
At the current price of Rs.34.5, TAKE is trading at a PE of 4.8x FY12 estimated EPS & 3.59x FY13 estimated EPS. Considering the current global meltdown, we are assigning a lower target PE multiple of 6.0x (against earlier 7x) and arrive at a target price of Rs.43 per share for TAKE indicating a potential upside of 25% from current levels. We recommend to HOLD the stock.
Performance Analysis TAKE’s revenues grew 6% QoQ and 46.3% YoY to Rs. 158.6 Crs in Q1 FY12 boosted by large orders from existing clients in Life sciences and supply chain management business and strong traction from USA and Asia. WCI revenues on a QoQ basis was marginally negative in Q1FY12 and would be the same in Q2FY12 due to economic instability in the region . However, WCI is expected to do well in Q3 and Q4 of FY12. The company reported EBITDA of Rs. 34.1 Crs in Q1 FY12 as compared to Rs. 29.4 Crs in Q4 FY11 and Rs 23.3 Crs in Q1 FY11. EBITDA margin grew by 184 bps QoQ and was flat on a YoY basis TAKE reported net profit of Rs. 21.6 Crs in Q1 FY12 which was a 5.5% growth on a QoQ basis and 50.4% growth on a YoY basis. Company’s EPS increased to Rs 1.80 in Q1 FY12 from Rs.1.70 in Q4 FY11.
New launches Take released Xtended Process Control (X.PC) 5.8 supplier relationship management system. This advanced version progresses purchasing cycles by offering new vendor-managed inventory and new features that provide external suppliers full-visibility into inventory levels across warehouses and external depots which helps suppliers to automatically manage and replenish materials to reduce inventory overage and ascertain products are received on time.
TAKE launched Insight Sfx solution for pharmaceutical companies with a workbench to analyze Activity vs. Outcome, giving them a greater insights & in- depth visualization of their sales force’s effectiveness.
Business Overview
Life Sciences business
Life Sciences business showed good orders and execution in Q1FY12 and ended the quarter with an order book of USD 41.4 mn. Two new clients were added in LS business. The business had also been able to increase its business position in USA and Europe. From the WCI acquisition front, the integration of both companies is progressing as per plan. TAKE and WCI’s offerings are driving a significant increase in new opportunities for the company.
Supply Chain Management
Q1FY12 has been the best ever quarter for SCM business showing 9% growth on a QoQ basis and contributing 44% to the total revenues. The SCM business business closed the quarter with USD 31.1 mn. Four clients were added during the quarter.
Business Outlook
Take Solutions operates in a niche area of Life sciences where it has very few competitors like Octagon Research and Oracle acquired Phase forward in the US.
Unlike competitors, Take solutions is offering products right from clinical research to patient safety and business consulting. Take has a wider product portfolio to offer against its competitors.
Take is also planning aggressively to develop solutions based on cloud computing platform primarily for the SME sector which will go together with their existing OneSCM offerings that is designed for large enterprises. The company plans to launch this new set of offerings within next two quarters.
Guidance
Management expects QoQ growth of around 6-7% for the next 2-3 quarters on the back of strong traction from the US and Asian region. For the whole year, margins are expected to be in the range of 22-23% and effective tax rate would remain at 20%. WCI:
o Management expects WCI to contribute around the 10-12% of the total revenues by end of FY12 and further more expect it to be contrubuting about 25% of the revenues over the next three years.
o WCI Consulting is expected to show a muted growth in Q2FY12. However, the synergies are expected to start showing results by Q3FY12.
o The acquisition of WCI Consulting contributed about 6.5% of Take’s revenues in Q1FY12.
Valuation & Recommendations
At the current price of Rs.34.5, TAKE is trading at a PE of 4.8x FY12 estimated EPS & 3.59x FY13 estimated EPS. Considering the current global meltdown, we are assigning a lower target PE multiple of 6.0x (against earlier 7x) and arrive at a target price of Rs.43 per share for TAKE indicating a potential upside of 25% from current levels. We recommend to HOLD the stock.
No comments:
Post a Comment