Escolar Documentos
Profissional Documentos
Cultura Documentos
Rating matrix
Rating
Target
Target Period
Potential Upside
:
:
:
:
Hold
| 845
15-18 months
0%
Whats Changed?
Target
EPS FY16E
EPS FY17E
EPS FY18E
Rating
Quarterly Performance
Revenue
EBITDA
EBITDA (%)
Adj. Net Profit
Q3FY16
7,082.1
2,169.0
30.6
1,416.6
Q3FY15
6,929.5
2,164.5
31.2
395.3
YoY (%)
2.2
0.2
-61 bps
258.3
Key Financials
(| Crore)
Net Sales
EBITDA
Adj. Profit
Adj. EPS (|)
FY15
27433.4
7866.7
4777.1
19.8
FY16E
28538.4
8540.0
5464.1
22.7
FY17E
32294.9
10201.3
6793.9
28.2
FY15
45.1
42.7
25.5
8.0
18.6
18.8
FY16E
42.8
37.3
22.8
6.8
18.2
19.6
FY17E
30.1
30.0
18.7
5.7
19.1
21.1
FY18E
37976.6
12360.7
8497.6
35.2
Valuation summary
PE (x)
Target PE (x)
EV to EBITDA (x)
Price to book (x)
RoNW (%)
RoCE (%)
FY18E
24.1
24.0
14.9
4.8
19.9
22.7
Stock data
Amount
| 204170 crore
| 8996 crore
| 13734 crore
| 199431 crore
1201/706
| 240.7 crore
|1
Particular
Market Capitalisation
Debt (FY15)
Cash & Cash Equivalents (FY15)
EV (| Cr)
52 week H/L (|)
Equity capital
Face value
1M
6.2
-1.6
5.3
3M
11.2
-14.1
-0.6
| 848
6M
-1.3
-31.7
5.5
1Y
-10.3
-8.5
12.6
Research Analyst
Siddhant Khandekar
siddhant.khandekar@icicisecurities.com
Mitesh Shah
mitesh.sha@icicisecurities.com
Nandan Kamat
nandan.kamat@icicisecurities.com
Variance analysis
Revenue
Q3FY16 Q3FY16E
7,082.1 6,734.5
Q3FY15
6,929.5
Q2FY16
6,837.6
1,755.4
1,148.3
2,009.4
4,913.1
2,169.0
30.6
1,683.6
1,212.2
1,919.4
4,815.2
1,919.3
28.5
1,712.7
1,090.9
1,961.3
4,765.0
2,164.5
31.2
1,558.3
1,208.8
2,136.8
4,903.9
1,933.7
28.3
2.5
12.7
5.3
-5.0
2.4
-6.0
3.1
0.2
0.2
12.2
-61 bps 235 bps
Interest
Depreciation
Other income
EO
PBT
Tax
MI
Adj. Net Profit
Key Metrics
India formulations
117.0
250.8
219.2
0.0
2,020.5
202.0
401.9
1,416.6
148.4
271.1
110.4
0.0
1,610.2
241.5
261.6
1,107.1
152.9
228.4
-73.3
0.0
1,709.9
1,029.0
285.6
395.3
148.4
271.1
191.3
0.0
1,705.5
335.5
263.3
1,106.7
-23.5
9.8
LP
NA
18.2
-80.4
40.7
258.3
-21.1
-7.5
14.6
NA
18.5
-39.8
52.6
28.0
1890.3
1,832.7
1,745.4
1,818.7
8.3
3.9
US formulations
3,200.3
3,161.8
3,385.8
3,315.8
-5.5
-3.5
RoW formulations
1,551.0
1,407.4
1,563.8
1,405.7
-0.8
10.3
461.2
298.9
259.9
328.7
77.5
40.3
APIs
Comments
Growth in the domestic market and API sales led by consolidation of opiates business in
Australia was largly offset by de-growth in US business
Sequential growth in EBITDA margin was mainly due to 756 bps QoQ improvement in
Taro's margins to 68.7%
Sharp YoY increase mainly due to high other income and lower taxation
Acute segment growth impacted during the quarter due to continued impact of
withdrawal of bonus offers
YoY de-growth primarily due to competitive pressure in some products and temporary
supply constraints arising from remediation efforts at the Halol facility
Muted YoY growth due to currency depreciation in emerging markets and exit from low
margin businesses. Beat vis--vis our expectations mainly due to better-than-expected
constant currency growth
Increased due to consolidation of opiates business in Australia. Beat vis--vis our
expectations mainly due to earlier-than-expected consolidation of opiates business
Change in estimates
(| Crore)
Old
Total Operating Incom 31,634.2
EBITDA
9,990.7
EBITDA Margin (%)
31.6
Adjusted PAT
6,352.8
EPS (Adjusted)
26.3
FY17E
New % Change
32,294.9
2.1
10,201.3
2.1
31.6
1 bps
6,793.9
6.9
28.2
7.1
Old
37,692.3
12,268.5
32.5
8,286.4
34.4
FY18E
New % Change
37,976.6
0.8
12,360.7
0.8
32.5
0 bps
8,497.6
2.5
35.2
2.4
Assumptions
| crore
Indian Formulations
US Formulations
RoW markets
APIs
FY15
6,716.6
13,719.6
6,064.6
1,070.2
FY16E
7,406.8
13,283.9
5,928.6
1,545.0
Current
FY17E
FY18E
8,703.3 10,269.9
14,960.6 18,288.2
6,535.0
7,188.5
1,883.7
1,977.9
Earlier
FY17E
FY18E
8,634.2 10,188.3
15,057.7 18,489.1
6,437.0
7,402.5
1,297.2
1,362.1
Page 2
Company Analysis
Established in 1983, Sun Pharma is the largest Indian pharmaceutical
company both in terms of market capitalisation and turnover (FY15).
The company manufactures and markets a large basket of pharmaceutical
formulations in India, the US and several other markets across the world.
However, the US and Indian formulations are by far the core strengths
and growth drivers for the company.
The US business has been built mostly on acquisitions and generic focus.
It owns the largest product basket among Indian players with as many as
591 product (ANDA) filings.
In Indian formulations, the company is a leader in niche therapy areas of
psychiatry, gastroenterology, neurology, cardiology, nephrology,
orthopaedics and ophthalmology.
The company completed the $3.2-billion acquisition of Ranbaxy
Laboratories after almost a year of navigating the regulatory gauntlet to
create the worlds fifth-biggest generic pharmaceutical company by
revenue.
A snapshot of galloping performance in the last five years- Sales grew at
a CAGR of 48% to | 27433 crore; EBIDTA grew at a CAGR of ~41% to
| 7867 crore; Adjusted PAT grew at a CAGR of 25.7% to | 4539.5 crore.
Going ahead, we expect revenues to grow at a CAGR of 11.4% in FY1518E to | 37976 crore after considering Ranbaxy acquisition.
Exhibit 1: Revenues to grow at CAGR of 11.4% in FY15-18E
40000
37,976.6
32,294.9
35000
30000
27,433.4
28,538.4
FY15
FY16E
(| crore)
25000
20000
16,080.4
15000
10000
11,299.9
5,721.4
8,011.6
5000
0
FY11
FY12
FY13
FY14
FY17E
FY18E
Page 3
18,288.2
18000
16000
14000
(| crore)
12000
14,960.6
13,719.6
13,283.9
FY15
FY16E
9,784.4
10000
8000
6,153.8
6000
3,471.6
4000
1,386.9
2000
0
FY11
FY12
FY13
FY14
FY17E
FY18E
US
10,269.9
10000
8,703.3
(| crore)
8000
6,716.6
7,406.8
6000
4000
2,468.3
2,915.4
2,965.7
FY12
FY13
3,691.8
2000
0
FY11
FY14
FY15
FY16E
FY17E
FY18E
Domestic
Page 4
7,188.5
7000
6,064.6
5,928.6
FY15
FY16E
6000
6,535.0
(| crore)
5000
4000
3000
2000
535.8
1000
1,908.4
1,527.1
1,112.4
0
FY11
FY12
FY13
FY14
FY17E
FY18E
ROW
2000
1,977.9
1,545.0
(| crore)
1500
1,070.2
1000
614.7
527.3
754.9
801.0
FY13
FY14
500
0
FY11
FY12
FY15
FY16E
FY17E
FY18E
14000
12000
34.4
44.0
40.7
10201.3
(| crore)
10000
7195.6
8000
8540.0
29.9
7866.7
28.7
31.6
1967.2
32.5
45.0
35.0
30.0
25.0
20.0
3258.0
15.0
10.0
2000
5.0
FY11
FY12
FY13
FY14
EBITDA
FY15
FY16E
FY17E
FY18E
50.0
40.0
4967.2
6000
4000
12360.7
Page 5
9000
8,497.6
8000
7000
26.6
(| crore)
6000
4,539.4
16.5
4000
2000
2,587.3
3,008.1
30.0
6,793.9
21.0
19.9
5000
3000
35.0
32.3
22.4
4,779.0
3,204.4
16.7
25.0
20.0
15.0
10.0
1,816.1
5.0
1000
0
FY11
FY12
FY13
FY14
FY15
PAT
FY16E
FY17E
FY18E
34.3
30
34.3
27.8
25
(| crore)
21.9
19.2
20
21.3
21.3
18.6
18.8
17.0
18.2
19.6
19.9
19.1
21.1
22.7
15
10
5
0
FY11
FY12
FY13
FY14
FY15
RoCE(%)
FY16E
FY17E
FY18E
RoNW (%)
SWOT Analysis
Strengths - Above average profitability margins, Healthy return ratios
despite higher cash component, one of the first companies to identify
potential of innovative R&D and generic R&D, robust infrastructure to
scale up US business, India business built around chronic focus, one of
the few companies defying the slowdown in Indian formulations.
Weakness - Pending Ranbaxy compliance issues
Opportunities - The US generics space, biosimilars space where Sun is
yet to make a meaningful foray
Threats - Increased USFDA scrutiny across the globe regarding cGMP
issues and consolidation in the US pharmacy space. Halol facility has
received the warning letter from the USFDA
Page 6
Q3FY14
Q4FY14
Q1FY15
Q2FY15
Q3FY15
Q4FY15
Q1FY16
Q2FY16
Q3FY16
YoY (%)
QoQ (%)
7206.4
6525.4
6341.2
8039.4
6929.5
6157.0
6757.6
6837.6
7082.1
2.2
3.6
1828.3
1596.1
1645.2
1817.2
1712.7
1597.4
1717.4
1558.3
1755.4
2.5
12.7
5.3
-5.0
2.4
-6.0
3.1
0.2
0.2
12.2
74.6
75.5
74.1
77.4
75.3
74.1
74.6
77.2
75.2
1065.7
1021.5
1096.0
1114.3
1090.9
1128.6
1227.0
1208.8
1148.3
14.8
15.7
17.3
13.9
15.7
18.3
18.2
17.7
16.2
2195.0
1892.4
1661.9
2041.7
1961.3
2638.6
1963.5
2136.8
2009.4
30.5
29.0
26.2
25.4
28.3
42.9
29.1
31.3
28.4
5089.0
4510.0
4403.1
4973.2
4765.0
5364.7
4907.9
4903.9
4913.1
70.6
69.1
69.4
61.9
68.8
87.1
72.6
71.7
69.4
2117.4
2015.4
1938.1
3066.2
2164.5
792.4
1849.7
1933.7
2169.0
29.4
30.9
30.6
38.1
31.2
12.9
27.4
28.3
30.6
Depreciation
196.5
201.4
235.4
269.1
228.4
461.8
240.1
271.1
250.8
9.8
-7.5
Other Income
273.2
373.5
181.9
-30.9
-73.3
382.5
105.4
191.3
219.2
LP
14.6
2194.1
2187.5
1884.6
2766.2
1862.8
713.0
1715.0
1853.9
2137.5
14.7
15.3
127.3
117.5
148.9
161.7
152.9
124.8
123.0
148.4
117.0
-23.5
-21.1
103.6
156.0
237.8
0.0
0.0
0.0
685.2
0.0
0.0
NA
NA
1963.3
1914.1
1497.9
2604.5
1709.9
588.3
906.8
1705.5
2020.5
18.2
18.5
-39.8
341.9
229.8
206.3
279.3
1029.0
-599.9
226.8
335.5
202.0
-80.4
1621.3
1684.3
1291.6
2325.2
680.9
1188.2
680.0
1370.0
1818.5
167.1
32.7
245.5
171.7
87.1
274.9
285.6
301.2
201.1
263.3
401.9
40.7
52.6
1375.9
1512.6
1204.6
2050.3
395.3
886.9
479.0
1106.7
1416.6
258.3
28.0
5.7
6.3
5.0
8.5
1.6
3.7
2.0
4.6
5.9
258.3
28.0
241.1
241.1
241.1
241.1
241.1
241.1
241.1
241.1
241.1
Page 7
Valuation
Adjusting for consolidation and one-offs, the ex-taro Q3 numbers were
more or less in line with our expectations. We believe most of the
negatives pertaining to the Halol plant have been factored in. However,
until the Halol resolution, US sales are likely to remain under pressure
even though the company has sufficient bandwidth to make alternate
arrangements. Other developments in the field of biosimilars and
acquisitions are likely to be overshadowed by this glaring issue. The
progress on Halol may have prompted the management to approach the
USFDA in Q1FY17 for re-inspection. We have ascribed a target price of
| 845 based on 24x FY18E EPS of | 35.2. We maintain our HOLD rating
until any positive development takes place regarding Halol.
(|)
Dec06
Sep07
Jun08
Mar09
Price
Dec09
68.7x
Sep10
Jun11
56.0x
Mar12
Dec12
34.9x
Sep13
Jun14
18.0x
Mar15
Dec15
9.5x
[
47.1% Premium
70
60
(x)
50
40
30
20
10
0
Mar06
Dec06
Sep07
Jun08
Mar09
Dec09
Sep10
Jun11
Mar12
Dec12
Sep13
Sun Pharma
CNX Pharma
EPS
(|)
19.8
22.7
28.2
35.2
P/E EV/EBITDA
(x)
(X)
45.1
25.5
42.8
22.8
30.1
18.7
24.1
14.9
Jun14
Mar15
Dec15
FY15
FY16E
FY17E
FY18E
Revenues
(| crore)
27433
28538
32295
37977
Growth
(%)
2.1
4.0
13.2
17.6
Growth
(%)
199.3
14.4
24.3
25.1
RoE
(%)
18.6
18.2
19.1
19.9
Page 8
RoCE
(%)
18.8
19.6
21.1
22.7
Company snapshot
1,600
1,400
1,200
Target Price:| 845
1,000
800
600
400
200
Jan-17
Oct-16
Jul-16
Apr-16
Jan-16
Oct-15
Jul-15
Apr-15
Jan-15
Oct-14
Jul-14
Apr-14
Jan-14
Oct-13
Jul-13
Apr-13
Jan-13
Oct-12
Jul-12
Apr-12
Jan-12
Oct-11
Jul-11
Apr-11
Oct-10
Jan-11
Jul-10
Apr-10
Jan-10
Oct-09
Jul-09
Apr-09
Jan-09
Key events
Date
Jun-09
Event
USFDA seizes more than 33 generic drugs from Caraco for failing to meet FDA cGMP requirements
Aug-10
Manufacturing facility in Cranbury, New Jersey receives warning letter from USFDA
Sep-10
Apr-11
Sep-11
Forms joint venture with Merck & Co Inc to develop, manufacture and commercialise new combinations, novel formulations and branded generics in emerging
markets
Receives establishment inspection report (EIR) from USFDA for its Cranbury, New Jersey facility
Feb-12
USFDA grants special approval to Sun Pharma to supply short supply oncology product Doxil to the US market
Aug-12
USFDA gives approval to Caraco Pharmas manufacturing facility & packaging sites to resume production for two drugs
Nov-12
Acquires US based dermatology company Dusa Pharma, which was marketing innovative drug & device Levulan (aminolevulinic acid HCl)
Dec-12
Feb-13
May-14
Sep-14
Mar-15
Halol unit receives Form 483 observation letter from the USFDA
Sun Pharma acquires GSK's Opiates Business in Australia with two Opiates manufacturing facilities in Port Fairy & Latrobe
Apr-15
Dec-15
Receives warning letter from the USFDA for its Halol manufacturing facility.
Top 10 Shareholders
Rank
1
2
3
4
5
6
7
8
9
10
Name
Shanghvi (Dilip Shantilal)
Viditi Investment Pvt. Ltd.
Tejaskiran Pharmachem Industries Pvt. Ltd.
Family Investment Pvt. Ltd.
Quality Investment Pvt. Ltd.
Virtuous Finance, Ltd.
Virtuous Share Investment Pvt. Ltd.
Life Insurance Corporation of India
Aditya Medisales, Ltd.
GIC Private Limited
Shareholding Pattern
Latest Filing Date % O/S Position (m) n Change (m)
30-Sep-15 0.10
231.1
0.0
30-Sep-15 0.08
201.4
0.0
30-Sep-15 0.08
195.3
0.0
30-Sep-15 0.08
182.9
0.0
30-Sep-15 0.08
182.9
0.0
30-Sep-15 0.04
97.1
0.0
30-Sep-15 0.03
84.0
0.0
30-Sep-15 0.03
71.0
7.5
30-Sep-15 0.02
40.2
0.0
30-Sep-15 0.02
38.0
1.4
(in %)
Promoter
FII
DII
Others
Recent Activity
Buys
Investor name
Capital International Investors
Fidelity Management & Research Company
Life Insurance Corporation of India
Abu Dhabi Investment Authority
Thornburg Investment Management, Inc.
Value ($)
109.8
98.8
98.8
32.5
19.9
Shares
8.9
8.0
7.5
2.5
1.5
Sells
Investor name
William Blair & Company, L.L.C.
Vontobel Asset Management, Inc.
T. Rowe Price International (UK) Ltd.
T. Rowe Price Hong Kong Limited
Matthews International Capital Management, L.L.C.
Value ($)
-132.9
-82.4
-54.6
-33.2
-21.4
Shares
-10.0
-6.6
-4.4
-2.7
-1.6
Page 9
Financial summary
Profit and loss statement
(Year-end March)
Revenues
Growth (%)
Raw Material Expenses
Employee Expenses
Other Expenditure
Total Operating Expenditure
EBITDA
Growth (%)
Depreciation
Interest
Other Income
PBT
Less: Exceptional Items
Total Tax
PAT
Minority Interest
Adjusted PAT
Growth (%)
EPS (Adjusted)
| Crore
FY15
27,433.4
2.1
6,739.2
4,429.9
8,397.7
19,566.7
7,866.7
102.7
1,194.7
578.9
547.7
6,640.7
237.8
914.7
4,539.4
936.4
4,777.1
199.3
19.8
FY16E
28,538.4
4.0
6,873.1
4,828.4
8,297.0
19,998.5
8,540.0
8.6
1,009.6
505.3
641.2
7,666.3
685.2
1,023.8
4,779.0
1,178.4
5,464.1
14.4
22.7
FY17E
32,294.9
13.2
7,805.7
5,490.1
8,797.7
22,093.6
10,201.3
19.5
1,061.8
366.8
730.4
9,503.2
0.0
1,570.9
6,793.9
1,138.4
6,793.9
24.3
28.2
FY18E
37,976.6
17.6
9,475.9
6,076.3
10,063.8
25,615.9
12,360.7
21.2
1,133.3
265.5
858.9
11,820.7
0.0
2,127.7
8,497.6
1,195.4
8,497.6
25.1
35.2
| Crore
FY15
241.0
25,382.6
25,638.5
8,996.1
98.5
2,851.2
2,718.7
40,303.0
16,705.9
7,724.4
8,981.5
2,038.6
11,020.1
2,716.3
1,850.2
3,701.0
2,736.0
10,998.3
5,312.3
2,193.3
5,668.0
2,832.9
27,004.7
3,153.8
5,571.5
8,725.3
18,279.4
40,302.9
(Year-end March)
Profit/(Loss) after taxation
Depreciation
(Inc)/Dec in Current Assets
(Inc)/Dec in Current Liabilities
Others
CF from operation
Purchase of Fixed Assets
(Inc)/Dec in Investments
Others
CF from Investing Activities
Inc / (Dec) in Loan Funds
Inc / (Dec) in Equity Capital
Dividend and dividend tax
Other Financial Activities
CF from Financing Activities
Cash generation during the year
Op bal Cash & Cash equivalents
Closing Cash/ Cash Equivalent
Free Cah Flow
| Crore
FY15
4539.4
1194.7
-1087.0
1047.8
251.3
5946.2
-3161.4
708.7
3418.0
965.2
-547.9
75.0
-363.3
-251.3
-1087.5
5824.0
5722.1
11546.1
2784.8
FY16E
4779.0
1009.6
-34.4
22.3
505.3
6281.8
-405.5
184.9
951.1
730.6
-2060.5
-14.9
-408.5
-505.3
-2989.2
4023.2
10998.3
15021.5
5876.3
FY17E
6793.9
1061.8
-2373.1
908.2
366.8
6757.5
-1300.0
-305.4
911.1
-694.3
-1500.0
0.0
-1161.3
-366.8
-3028.1
3035.2
15021.5
18056.6
5457.5
FY18E
8497.6
1133.3
-3218.3
1195.2
265.5
7873.4
-1300.0
-305.4
968.1
-637.3
-1500.0
0.0
-1452.6
-265.5
-3218.1
4018.0
18056.6
22074.6
6573.4
FY15
FY16E
FY17E
FY18E
19.8
23.8
106.3
1.5
45.6
22.7
24.0
124.4
1.7
62.3
28.2
32.6
147.8
4.8
74.9
35.2
39.9
177.0
6.0
91.6
75.4
28.7
17.4
75.4
70.7
42.0
75.6
75.9
29.9
19.1
79.6
57.8
37.9
73.6
75.8
31.6
21.0
80.1
58.1
38.1
66.2
75.0
32.5
22.4
80.1
58.1
38.1
63.7
18.6
18.8
28.6
18.2
19.6
31.5
19.1
21.1
35.3
19.9
22.7
39.5
45.1
25.5
7.3
7.5
8.0
42.8
22.8
6.8
7.2
6.8
30.1
18.7
5.9
6.3
5.7
24.1
14.9
4.9
5.4
4.8
1.1
0.4
1.8
0.8
0.2
1.8
0.5
0.2
1.9
0.3
0.1
2.0
Balance sheet
(Year-end March)
Equity Capital
Reserve and Surplus
Total Shareholders funds
Total Debt
Deferred Tax Liability
Minority Interest
Other LT Liabitlies & LT Provision
Total Liabilities
Gross Block
Accumulated Depreciation
Net Block
Capital WIP
Total Fixed Assets
Investments
Deferred tax assets
Goodwill on Consolidation
LT Loans & Advances & Assets
Cash
Debtors
Loans and Advances
Inventory
Other current assets
Total Current Assets
Creditors
Provisions & other current liability
Total Current Liabilities
Net Current Assets
Application of Funds
FY16E
241.0
29,753.1
29,994.1
6,935.6
123.4
4,029.6
2,718.7
43,801.4
18,005.9
8,734.0
9,271.9
1,144.1
10,416.0
2,531.4
2,102.4
3,701.0
2,736.0
15,021.5
4,515.7
2,273.0
6,221.8
3,030.3
31,062.3
2,960.8
5,786.9
8,747.6
22,314.7
43,801.4
FY17E
241.0
35,385.6
35,626.6
5,435.6
148.3
5,168.0
2,718.7
49,097.3
19,305.9
9,795.8
9,510.1
1,144.1
10,654.2
2,836.8
2,354.6
3,701.0
2,736.0
18,056.6
5,144.0
2,650.2
7,087.4
3,532.4
36,470.6
3,372.7
6,283.2
9,655.8
26,814.8
49,097.2
FY18E
241.0
42,430.7
42,671.6
3,935.6
173.2
6,363.4
2,718.7
55,862.6
20,605.9
10,929.2
9,676.8
1,144.1
10,820.8
3,142.2
2,606.8
3,701.0
2,736.0
22,074.6
6,048.6
3,107.7
8,333.8
4,142.2
43,706.9
3,965.8
6,885.3
10,851.0
32,855.8
55,862.6
Key ratios
(Year-end March)
Per share data (|)
Adjusted EPS
Cash EPS
BV per share
Dividend per share
Cash Per Share
Operating Ratios (%)
Gross Margin
EBITDA Margin
PAT Margin
Inventory days
Debtor days
Creditor days
EBITDA Conversion rate
Return Ratios (%)
RoE
RoCE
RoIC
Valuation Ratios (x)
P/E
EV / EBITDA
EV / Net Sales
Market Cap / Sales
Price to Book Value
Solvency Ratios
Debt / EBITDA
Debt / Equity
Current Ratio
Page 10
Rating M Cap
(| Cr)
FY15
EPS (|)
FY16E FY17E FY15
PE(x)
EV/EBITDA (x)
RoCE (%)
RoE (%)
FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E
Ajanta Pharma
AJAPHA
11546.6
36.0
44.1
49.3
36.4
29.8
26.6
22.6
19.4
17.0
50.3
45.5
40.2
37.8
33.8 29.0
11.5 12.3
Apollo Hospitals
APOHOS
19471.9
23.7
28.8
34.1
59.0
48.7
41.0
28.7
24.3
19.8
9.9
11.5
12.9
10.4
Aurobindo Pharma
AURPHA
660
990 Buy
38574.7
28.1
33.0
37.7
23.5
20.0
17.5
30.7
25.5
21.8
23.4
24.4
25.4
31.7
28.1 24.8
Alembic Pharma
ALEMPHA
589
790 Buy
11111.1
15.1
39.0
28.5
39.1
15.1
20.7
32.2
12.8
17.5
30.7
56.7
33.0
32.1
52.2 30.1
Biocon
BIOCON
444
510 Hold
8880.0
20.4
23.5
26.3
21.7
18.9
16.9
7.1
6.2
5.2
10.4
11.7
13.1
12.5
12.6 12.8
Cadila Healthcare
Cipla
CADHEA
CIPLA
306
529
405 Buy
750 Buy
31357.2
42463.6
11.2
14.7
14.3
22.0
15.3
29.9
27.4
35.9
21.4
24.0
20.0
17.7
20.3
22.5
15.3
17.7
14.6
13.5
20.7
13.8
25.8
15.1
24.6
18.4
27.0
10.9
27.4 24.1
14.4 16.8
Divi's Laboratories
DIVLAB
26217.7
32.1
40.2
46.7
30.8
24.6
21.1
23.6
19.9
16.8
29.4
31.3
31.1
24.4
25.6 25.1
Dr Reddy's Labs
DRREDD
22.1
20.0
20.0
14.4
12.0
11.6
16.7
17.4
16.5
22.3
19.8 16.5
Glenmark Pharma
GLEPHA
691
975 Buy
19494.3
23.1
30.0
40.1
29.9
23.0
17.2
19.7
14.7
12.1
13.3
17.8
21.2
21.7
22.3 23.3
Indoco Remedies
INDREM
269
390 Buy
2482.5
9.0
9.6
15.4
30.0
28.1
17.5
18.2
16.7
12.4
16.4
15.9
22.0
16.0
15.1 20.5
Ipca Laboratories
IPCLAB
585
735 Buy
7380.2
19.9
12.0
30.3
29.4
48.9
19.3
17.0
23.3
13.5
11.5
6.6
13.9
11.4
6.6 14.6
VAMORG
306
375 Hold
4878.6
-0.6
31.0
41.3
NA
9.9
7.4
14.3
7.3
5.9
5.8
13.3
15.4
NA
17.1 18.9
Lupin
LUPIN
78888.4
53.6
47.9
69.8
32.7
36.6
25.1
22.0
24.3
16.7
35.1
21.9
28.4
27.1
20.3 23.8
Natco Pharma
NATPHA
454
630 Buy
7906.6
8.3
7.3
11.3
54.6
62.0
40.1
37.4
31.4
23.5
15.4
12.9
16.1
17.9
9.8 13.5
Sun Pharma
SUNPHA
848
845 Hold
204169.5
19.8
22.7
28.2
42.8
37.4
30.1
25.5
22.8
18.7
18.8
19.6
21.1
18.6
18.2 19.1
Torrent Pharma
TORPHA
20847.1
44.4 112.3
66.8
27.8
11.0
18.4
24.2
8.5
13.3
20.1
42.8
24.4
30.2
49.4 24.1
15.7
24.6
18.7
13.0
21.1
13.7
10.7
8.5
13.1
16.6
8.7
10.6 13.7
Unichem Laboratories
UNILAB
205
Source: Company, ICICIdirect.com Research
310 Buy
1859.5
8.3
11.0
Page 11
RATING RATIONALE
Pankaj Pandey
Head Research
pankaj.pandey@icicisecurities.com
Page 12
ANALYST CERTIFICATION
We /I, Siddhant Khandekar, CA INTER and Mitesh Shah, MS (finance), Nandan Kamat MBA Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed
in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific
recommendation(s) or view(s) in this report.
Page 13