Eastern

Ltd.
EasternFinanciers
Financiers
Ltd.
Suven Life Sciences Ltd.
12th Feb 2014

Company Background

Suven Life Sciences Ltd.

INDUSTRY
No. of Shares (Crs)
Face value
Mkt. Cap (Rs. Crore)
Price (11/02/2014)
Book Value (Rs)
P/BV
BSE Code
NSE Code
Bloomberg
Reuters
Volume (Weekly) (NSE)
52 W H/L (Rs.)(NSE)

Pharmaceuticals
11.68
Re1.00
843.29
72.20
22.79
3.17
530239
SUVEN
SVLS IN
SUVP.BO
1790950
83.50/21.95

Shareholding Pattern
Promoters
MFs / Banks / FIs
Foreign
Non-Promoter Corp.
Total Public
Others
Total
(as on 31-Dec-2013)

Suven Life Sciences Ltd. (SLL) is engaged in the business of design,

manufacturing and supply of Bulk actives, drug intermediaries and fine
(Fig in Crores)
chemicals. With strong focus on R&D and state-of-the art infrastructure, the
company is one of the premier pharma companies in India, catering to the
needs of global Life Science Industry. The company has established presence in
Contract Research and Manufacturing services (CRAMS), with strong focus on
CNS segment. It has relationship with 22 major Global pharma companies with
proven track-record of delivering world class solutions.

Highlights

64.75
0.56
0.33
4.35
23.43
6.58
100.00

Recommendation
BUY

15035000

100.00
80.00

10035000

60.00
5035000

40.00

35000

20.00

Volume

Particulars
Net sales
Other income
PBIDT
Net Profit
EPS (Rs)
EBIDTA margin (%)
Net Profit Margin (%)

Close

The Global CNS therapeutic segment is one of the fastest growing segments
within the Pharma industry. With the segment expected to grow at a CAGR
of 6-7% over the next five years, the opportunity for players like SLL, who
have niche offerings in the segment, remains huge.
The Company has an established presence in the generics segment as well.
With close to USD100 billion worth drugs going off-patent in the next three
years, there is a huge opportunity of growth in the segment.
SLL has 614 product patents for 18 inventions and 35 process patents.
Close to 100 CRAMS projects are currently active. Recently, the company
has been granted three product patents each from Canada, China and India
for a New Chemical Entities used to treat disorders associated with
Neurodegenerative diseases and these Patents are valid through 2025.
SLL has been an innovation driven company and continues to invest
steadily in Research & Development activities. In-fact, it has shored-up its
R&D expenses close to 43% YoY. Active R&D efforts would enable the
company to create a niche for itself, aiding superior growth.
The company has twelve internally discovered therapeutic drug candidates
currently in pre-clinical stage of development targeting conditions such as
ADHD, dementia, depression, Huntington's disease, Parkinson's disease and
obesity in addition to developmental candidate SUVN-502 for Alzheimer's
disease and Schizophrenia. The approval of these products could lead to a
spike in growth, going forward.
In 9MFY14, the company reported net sales of Rs.379.51 Cr as compared to
Rs.183.18 Cr last year. Net profit for the period under consideration stood
at Rs.111.75 Cr as against Rs.22.21 Cr last year.
At CMP of Rs.72.20, the stock trades at 4.81x FY15E EPS. We recommend a
BUY on the stock with a price target of Rs.90.00, assuming a P/E of 6x
FY15E earnings, an upside of 25%, over a period of 12 months.

9MFY14

9MFY13

% VAR.

FY11

FY12

FY13

FY14E

FY15E

379.51
4.12
173.45
111.75
9.57
45.70
29.45

183.18
0.50
40.09
22.21
1.90
21.89
12.12

107.18
724.00
332.65
403.15

150.43
1.26
14.81
10.40
0.89
9.85
6.91

204.21
1.90
25.05
14.36
1.23
12.27
7.03

257.88
1.04
54.23
30.84
2.64
21.03
11.96

511.27
5.62
226.03
143.21
12.26
44.21
28.01

663.84
5.84
289.50
175.12
14.99
43.61
26.38

Eastern
Ltd.
EasternFinanciers
Financiers
Ltd.
Suven Life Sciences Ltd.
12th Feb 2014

EASTERN FINANCIERS RESEARCH DESK

Rajesh Agarwal Head of Research

033 4011 7811 rajesh.agarwal@easternfin.com

Biswarup Chakraborty- Research Analyst

033 4011 7800 biswarup.chakraborty@easternfin.com

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