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Vivimed Labs
In investment phase
Mr. Krishna Yeachuri – Director shared his outlook on the
industry and the company
Key Highlights
n The company has two main lines of business - specialty chemicals and Pharma.
Margins in specialty chemicals business is 21% whereas the pharma business
has 16 margins. It has 5 manufacturing facilities - Hyderabad (2); Bidar (1);
Uttarakhand (2)
n 70% of revenues comprises of exports. Marquee clientele - all top Cosmetic /
Staples brands - L'Oreal/Avon/Unilever. In the specialty segment – the company
is focusing on expanding existing capacities. In the pharma segment – the
company is foraying in therapeutic areas like oncology and tuberculosis
n Sales Guidance – The Company has guided for sales of Rs6.25bn/ Rs9bn/
Rs11.5bn by FY12E/ 13E / 14E respectively. The company intends to do a
capex of Rs1.9bn in its pharma business for FY12
n Vivimed is raising funds through various sources to fund its Capex program of
$43mn. Till date, Company has raised funds through FCCBs (~$ 7.5m) and
private equity of $28m
n Vivimed has raised $27.6mn from PE firms NYLIM Jacob Ballas Fund III and
Kitara Capital. NYLIM Jacob Ballas India Fund, invested Rs670mn to subscribe
to compulsorily convertible preference shares (to be converted within a period of
18 months) at a price of Rs315 per share, picking up 13.2%. Kitara invested Rs
600mn at a price of Rs327 per share for 11.4 % stake
n The fund-raising will help Vivimed to finance its ongoing expansion plans for
specialty chemicals at Bidar (Karnataka), a green field project in Vizag at
Pydibhimavaram (Andhra Pradesh) and a USFDA-compliant facility for
pharmaceuticals at Choutuppal near Hyderabad, as well as acquisitions of
pharma marketing companies in India and the overseas acquisition of an API
manufacturing company in Europe
n The new capacities are expected to come on-stream by the mid of next year
which will drive the overall growth
Valuations
At current price, the stock trades at 5x FY11 EPS of Rs48 and 10X FY11 EV/EBITDA.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Vivimed Labs
In investment phase
Mr. Krishna Yeachuri – Director shared his outlook on the
industry and the company
Key Highlights
n The company has two main lines of business - specialty chemicals and Pharma.
Margins in specialty chemicals business is 21% whereas the pharma business
has 16 margins. It has 5 manufacturing facilities - Hyderabad (2); Bidar (1);
Uttarakhand (2)
n 70% of revenues comprises of exports. Marquee clientele - all top Cosmetic /
Staples brands - L'Oreal/Avon/Unilever. In the specialty segment – the company
is focusing on expanding existing capacities. In the pharma segment – the
company is foraying in therapeutic areas like oncology and tuberculosis
n Sales Guidance – The Company has guided for sales of Rs6.25bn/ Rs9bn/
Rs11.5bn by FY12E/ 13E / 14E respectively. The company intends to do a
capex of Rs1.9bn in its pharma business for FY12
n Vivimed is raising funds through various sources to fund its Capex program of
$43mn. Till date, Company has raised funds through FCCBs (~$ 7.5m) and
private equity of $28m
n Vivimed has raised $27.6mn from PE firms NYLIM Jacob Ballas Fund III and
Kitara Capital. NYLIM Jacob Ballas India Fund, invested Rs670mn to subscribe
to compulsorily convertible preference shares (to be converted within a period of
18 months) at a price of Rs315 per share, picking up 13.2%. Kitara invested Rs
600mn at a price of Rs327 per share for 11.4 % stake
n The fund-raising will help Vivimed to finance its ongoing expansion plans for
specialty chemicals at Bidar (Karnataka), a green field project in Vizag at
Pydibhimavaram (Andhra Pradesh) and a USFDA-compliant facility for
pharmaceuticals at Choutuppal near Hyderabad, as well as acquisitions of
pharma marketing companies in India and the overseas acquisition of an API
manufacturing company in Europe
n The new capacities are expected to come on-stream by the mid of next year
which will drive the overall growth
Valuations
At current price, the stock trades at 5x FY11 EPS of Rs48 and 10X FY11 EV/EBITDA.
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