Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
C o n s o l i d a t i o n h u r t s m a r g i n s …
Elder Pharmaceuticals’ Q3FY12 numbers were almost in line but for
EBITDA margins. Consolidated sales grew ~36% YoY to | 343 crore (Idirect estimate: | 329 crore). The EBITDA grew ~22% to | 55 crore and
EBITDA margins stood at ~16% (I-direct estimate: 17%). The numbers,
however, are strictly not comparable due to acquisition/consolidation of
Biomeda and NeutraHealth. Overall EBITDA margins remained under
pressure on account of consolidation. Standalone sales grew ~22% to
| 257 crore, driven by the good show in domestic sales, which grew
~22%. Higher depreciation and interest costs arrested the growth in the
consolidated PAT at ~16% to | 18 crore (I-direct estimate: | 23 crore).
We maintain our BUY recommendation on the stock although we do
expect some consolidation stress, which is likely to affect the margins.
ƒ Price hikes, volume growth drive domestic performance
Domestic sales grew ~22% to | 249 crore on the back of price hikes
in key legacy products, volume growth as well as new launches. The
company launched five new products in the domestic market. Key
therapy groups such as anti-infectives and neutraceuticals led the
growth in the domestic markets. In-licensed products also
contributed to the growth. Higher growth can also be attributed to
growth in rural markets through the Elvista division.
ƒ Biomeda, NeutraHealth remain in investment mode
Combined revenue contribution from Biomeda and NeutraHealth
stood at | 86 crore during the quarter. These businesses, however,
remained in investment mode with losses at the EBITDA and PAT
level at | 1 crore and | 4.5 crore, respectively.
V a l u a t i o n
We expect Elder’s sales, EBITDA and PAT to grow at a CAGR of 26%,
24% and 40%, respectively, during FY11-13E. The performance of the
wholly owned European subsidiaries and debt reduction will hold the key
for overall valuations as legacy domestic brands continue to thrive even
in an adverse environment. We maintain our target price of | 428, based
on 7x FY13E EPS of | 61.1. We maintain our BUY rating on the stock
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
C o n s o l i d a t i o n h u r t s m a r g i n s …
Elder Pharmaceuticals’ Q3FY12 numbers were almost in line but for
EBITDA margins. Consolidated sales grew ~36% YoY to | 343 crore (Idirect estimate: | 329 crore). The EBITDA grew ~22% to | 55 crore and
EBITDA margins stood at ~16% (I-direct estimate: 17%). The numbers,
however, are strictly not comparable due to acquisition/consolidation of
Biomeda and NeutraHealth. Overall EBITDA margins remained under
pressure on account of consolidation. Standalone sales grew ~22% to
| 257 crore, driven by the good show in domestic sales, which grew
~22%. Higher depreciation and interest costs arrested the growth in the
consolidated PAT at ~16% to | 18 crore (I-direct estimate: | 23 crore).
We maintain our BUY recommendation on the stock although we do
expect some consolidation stress, which is likely to affect the margins.
ƒ Price hikes, volume growth drive domestic performance
Domestic sales grew ~22% to | 249 crore on the back of price hikes
in key legacy products, volume growth as well as new launches. The
company launched five new products in the domestic market. Key
therapy groups such as anti-infectives and neutraceuticals led the
growth in the domestic markets. In-licensed products also
contributed to the growth. Higher growth can also be attributed to
growth in rural markets through the Elvista division.
ƒ Biomeda, NeutraHealth remain in investment mode
Combined revenue contribution from Biomeda and NeutraHealth
stood at | 86 crore during the quarter. These businesses, however,
remained in investment mode with losses at the EBITDA and PAT
level at | 1 crore and | 4.5 crore, respectively.
V a l u a t i o n
We expect Elder’s sales, EBITDA and PAT to grow at a CAGR of 26%,
24% and 40%, respectively, during FY11-13E. The performance of the
wholly owned European subsidiaries and debt reduction will hold the key
for overall valuations as legacy domestic brands continue to thrive even
in an adverse environment. We maintain our target price of | 428, based
on 7x FY13E EPS of | 61.1. We maintain our BUY rating on the stock
No comments:
Post a Comment