Escolar Documentos
Profissional Documentos
Cultura Documentos
Rating matrix
:
Hold
Target
Target Period
| 1780
12-15 months
Potential Upside
5%
Rating
Whats Changed?
Target
Unchanged
EPS FY16
EPS FY17E
EPS FY18E
Unchanged
Rating
Unchanged
Quarterly Performance
Revenue
EBITDA
EBITDA (%)
Adj. Net Profit
Q1FY17
471.0
166.6
35.4
119.6
Q1FY16
391.4
122.5
31.3
89.6
YoY (%)
20.4
36.0
406 bps
33.5
Q4FY16
425.7
140.6
33.0
107.5
QoQ (%)
10.6
18.5
234 bps
11.2
Key Financials
(|crore)
FY15
FY16
FY17E
FY18E
1480.6
1727.5
2024.2
2405.8
EBITDA
505.2
580.4
684.0
803.4
Net Profit
309.9
401.4
463.2
561.3
36.0
45.4
52.8
63.5
FY15
FY16
FY17E
FY18E
0.1
0.1
0.1
0.0
48.4
37.4
32.2
26.7
Revenues
EPS (|)
Valuation summary
Debt / Equity
PE (x)
M.Cap/ Revenues (x)
10.1
8.7
7.4
6.2
EV to EBITDA (x)
29.5
25.8
21.6
18.3
17.8
12.8
9.7
7.5
RoNW (%)
37.8
34.2
30.2
28.1
RoCE (%)
50.3
42.9
37.2
35.3
Stock data
Particular
Amount
Market Capitalisation
| 14858 crore
Debt (FY16)
| 93 crore
Cash (FY16)
| 55 crore
EV
| 14896 crore
52 week H/L
1720/1103
Equity capital
| 17.6 crore
Face value
| 2 crore
1M
15.1
10.4
10.6
3M
10.3
-3.0
2.3
| 1701
6M
39.7
-5.6
4.5
1Y
9.1
-21.0
7.1
Research Analyst
Siddhant Khandekar
siddhant.khandekar@icicisecurities.com
Mitesh Shah
mitesh.sha@icicisecurities.com
Variance analysis
Q1FY17 Q1FY17E
471.0
454.7
Revenue
Q1FY16
391.4
Q4FY16
425.7
95.5
-3.9
4.1
Comments
YoY growth in revenues on account of 18.9% growth in domestic branded
formulations and 18.6% growth in export formulations led by African tender
business
99.4
111.4
103.4
532 bps YoY improvement in gross margins on account of better product mix
Employee Expenses
Other Expenditure
Total Operating Expenditure
EBITDA
EBITDA (%)
70.3
134.8
304.5
166.6
35.4
65.9
131.9
309.2
145.5
32.0
59.2
106.2
268.8
122.5
31.3
69.0
18.7
2.0
120.7
26.9
11.7
285.1
13.3
6.8
140.6
36.0
18.5
33.0 406 bps 234 bps
Interest
Depreciation
Other income
PBT before EO
Less: Exceptional Items
PBT
Tax
MI & Share of loss/ (gain) asso.
Adj. Net Profit
Key Metrics
Domestic
Exports
1.0
13.0
2.4
158.0
0.0
158.0
38.5
0.0
119.6
1.1
12.2
2.3
134.5
0.0
134.5
33.6
0.0
100.9
1.2
10.3
8.0
122.6
0.0
122.6
33.0
0.0
89.6
1.1
12.1
2.6
132.4
0.0
132.4
24.9
0.0
107.5
-13.7
26.1
-69.7
28.9
0.0
28.9
16.6
0.0
33.5
-9.8
7.9
-7.7
19.3
0.0
19.3
54.5
0.0
11.2
162.0
287.0
149.1
292.0
148.0
242.0
122.7
300.0
9.5
18.6
32.1
-4.3
Increase in EBITDA margins was mainly due to robust gross margins performance.
Miss vis--vis I-direct expectations due to higher-than-expected gross margins
Change in estimates
(| Crore)
Revenue
EBITDA
EBITDA Margin (%)
PAT
EPS (|)
Old
2,011.0
682.2
33.9
462.5
52.4
FY17E
New % Change
2,024.2
0.7
684.0
0.3
33.8
-11 bps
466.2
0.8
52.8
0.7
Old
2,368.9
791.8
33.4
561.5
63.6
FY18E
New % Change
2,405.8
1.6
803.4
1.5
33.4
0 bps
561.3
0.0
63.5
-0.1
Assumptions
(| crore)
Branded - domestic
Exports Total
FY15
417.6
978.1
FY16
500.7
1,162.5
Current
FY17E
FY18E
614.3
769.2
1,242.5 1,441.1
Earlier
FY17E
FY18E
616.1
771.9
1,274.8 1,404.0
Page 2
Company Analysis
Established in 1973, APL is mainly into exports as well as domestic
formulations. As of FY15, the exports: domestic formulation ratio stood at
65:35. The company owns five manufacturing facilities- four in
Aurangabad, Maharashtra and one in Mauritius. Of these five facilities,
only one in Aurangabad is an API facility. The rest are all formulations.
Consolidated revenues, EBITDA and PAT have grown at a CAGR of
31.1%, 48.6% and 58%, respectively, in FY11-16. APL had come out with
a maiden IPO in March 2000. It raised | 68 crore, which was earmarked
for capacity expansion and debt repayment.
Domestic formulations constitute 30.7% of the total consolidated turnover
(FY16). This segment has been further segregated into two subsegments- 1) Branded formulations and 2) Institutional business. Initially
the company was catering to the institutional business. Institutional subsegment accounts for ~6.6% of domestic formulations and mainly
confined to government and institutional tenders. It is only in the last 10
years that the focus has shifted to the branded formulations business,
which now accounts for ~93.4% of the domestic formulations.
The company focuses on only few so-called specialty therapies
ophthalmology, dermatology and cardiology. Together, these therapies
constitute ~85% of domestic branded formulations. The company
invested heavily in the technology and field force especially in the first
five years after the changed focus. The focus was also to offer novel
delivery system. From | 17 crore in FY05, the branded formulations have
grown at a CAGR of 34% to | 496.7 crore in FY16. Till date, the company
had launched ~190 products out of which ~135 are first time launches.
The current MR strength is ~3000. Overall, domestic formulations have
grown at a CAGR of 28.5% in FY11-16 to | 531.7 crore. The company has
only one product under the National List of Essential Medicines (NLEM)
2011 list.
Export formulations constitute 67.2% of the total consolidated turnover
(FY15). Exports are mainly confined to emerging markets and constitute
branded generics. APL exports its products in ~35 emerging markets
with significant presence in Franco African countries and Philippines.
Africa accounts for ~59% of export formulations followed by Asia. The
company also participates in anti-malarial tenders in Africa. It operates
through 450+ MRs in these emerging markets and owns a portfolio of
1481 registered brands in these markets encompassing major therapies
such as anti-infectives, anti-malarials, ophthalmic, dermatology,
cardiovascular, GI etc. The company also has a marginal presence in Latin
America. It has also forayed into regulated markets such as the US where
it has filed 26 ANDAs, received approvals for 10 and launched five
products. Overall export formulations have grown at a CAGR of 28.8% in
FY11-16 to | 1162.5 crore.
Ajanta Pharma has five subsidiaries including one step down subsidiary in
Mauritius, Philippines and the US. The Mauritius subsidiary with an
independent manufacturing base mainly caters to the Franco African
markets. The subsidiary in Philippines, which is a marketing arm, caters to
the Philippines market. The US subsidiary is an administrative office to
facilitate US operations.
We expect revenues to grow at a CAGR of 17% to | 2368.9 crore in FY1618E, on the back of strong growth in both exports and domestic
Page 3
2500
2024.2
(| crore)
2000
1480.6
1500
1208.3
930.8
1000
500
1727.5
504.9
677.4
0
FY11
FY12
FY13
FY14
FY15
FY16
FY17E
FY18E
Revenues
Page 4
785.6
630.7
479.0
535.7
385.0
170.0
FY11
227.0
FY12
292.0
FY13
FY14
FY15
FY16
FY17E
FY18E
Total Domestic
Formulation Exports
Exports account for 65% of the revenues. APL currently derives almost its
entire export revenues from emerging regions like Africa (Franco Africa),
Asia and the LatAm having a presence in more than 35 countries. Exports
have grown at 32.1% CAGR in FY11-16.
The company markets its products through a team of 450+ MRs. At
present, the company is marketing 200+ products in these regions. In all,
the company owns 1524 registered brands while another 1887 brands are
under registration.
APLs success story in emerging markets was carved out of the so called
differentiated approach. According to this, products were developed on
the basis of unmet medical needs in a particular geography. As a result,
the product basket varied from nation to nation. Similarly, the company
resorted to a different strategy of product marketing. As opposed to the
common practice of forging alliances with local/regional pharmaceutical
players, APLs front-end marketing team interacts directly with doctors.
The company has consistently introduced new products in these markets.
Overall, we expect export sales to grow at a CAGR of 11.3% to | 1441
crore in FY16-18E.
Exhibit 3: Exports to grow at CAGR of 11.3% in FY16-18E
1600.0
1441.1
1400.0
1162.5
1200.0
978.1
1000.0
793.0
800.0
600.0
400.0
1242.5
629.0
328.0
445.0
200.0
0.0
FY11
FY12
FY13
FY14
FY15
FY16
FY17E
FY18E
Total Exports
Page 5
175.9
146.6
100.0
47.0
62.0
248.4
122.0
116.7
202.0
200.0
79.0
149.7
35.0
49.0
FY11
FY12
72.0
104.0
0.0
0.0
FY11
FY12
FY13
FY14
FY15
FY16
FY17E
FY18E
FY13
FY14
Dermatology
FY15
FY16
FY17E
FY18E
16.4
16.4
FY17E
FY18E
Cardiology
400.0
200.0
200.0
37.0
46.0
64.0
85.0
115.3
134.0
161.6
201.9
39.0
53.0
54.0
66.0
61.4
35.0
0.0
0.0
FY11
FY12
FY13
FY14
FY15
FY16
FY17E
FY11
FY18E
FY12
FY13
FY14
FY15
FY16
Institutions- domestic
Ophthalmology
1000.0
810.3
800.0
682.4
600.0
400.0
200.0
170.0
256.0
340.0
440.0
693.9
527.3
600.0
400.0
200.0
149.0
179.0
FY11
FY12
263.0
439.4
469.5
FY15
FY16P
539.9
620.9
337.0
0.0
0.0
FY11
FY12
FY13
FY14
FY15
FY16
FY17E FY18E
Africa
FY13
FY14
FY17E FY18E
Asia
Page 6
800
30.5
700
(| crore)
600
19.1
24
505.2
20.8
20
368.8
400
300
100
580.4
23.8
500
200
36
33.8 803.433.4
32
684.0
28
33.6
16
12
221.6
96.3
(%)
900
140.7
8
4
0
0
FY11
FY12
FY13
FY14
FY15
EBITDA
FY16
FY17E
FY18E
(| crore)
20
309.9
300
10.0
200
50.7
12.0
11.4
16
233.9
12
8
112.1
77.3
(%)
19.4
400
23.3 24
23.2 466.223.0
20.9 401.4
500
100
28
561.3
4
0
0
FY11
FY12
FY13
FY14
FY15
Net Pr ofit
FY16
FY17E
FY18E
50
(%)
42
35.8
34
26
18
22.2
17.3
45.1
39.4
42.9
37.8
34.2
28.5
25.9
22.0
37.2
35.3
30.2
28.1
10
FY11
FY12
FY13
FY14
RoCE (%)
FY15
FY16
FY17E
FY18E
RoNW (%)
Page 7
Q1FY15
315.0
6.7
321.7
79.7
24.8
242.0
75.2
46.0
14.3
99.1
30.8
224.8
69.9
96.9
30.1
4.5
1.1
12.6
87.8
0.0
87.8
27.7
31.5
59.7
18.5
Q2FY15
365.8
6.1
371.9
94.8
25.5
277.1
74.5
47.9
12.9
100.4
27.0
243.1
65.4
128.8
34.6
4.4
1.1
12.7
119.5
0.0
119.5
36.0
30.2
83.0
22.3
Q3FY15
401.6
6.3
407.9
101.3
24.8
306.5
75.2
52.1
12.8
109.7
26.9
263.1
64.5
144.8
35.5
4.5
1.1
13.1
135.1
0.0
135.1
41.7
30.9
93.1
22.8
Q4FY15
363.0
8.5
371.5
89.6
24.1
281.9
75.9
54.7
14.7
96.7
26.0
241.1
64.9
130.4
35.1
5.0
1.1
13.2
121.1
8.5
129.6
40.8
31.4
71.5
19.2
Q1FY16
385.7
5.7
391.4
103.4
26.4
288.0
73.6
59.2
15.1
106.2
27.1
268.8
68.7
122.5
31.3
8.0
1.1
10.3
119.1
0.0
119.1
33.0
27.7
89.6
22.9
Q2FY16
434.5
3.2
437.7
99.5
22.7
338.2
77.3
63.8
14.6
120.5
27.5
283.8
64.9
153.8
35.1
5.4
1.1
11.0
147.2
0.0
147.2
47.2
32.1
100.0
22.8
Q3FY16
465.7
7.1
472.8
115.5
24.4
357.3
75.6
64.9
13.7
128.9
27.3
309.3
65.4
163.5
34.6
1.6
1.1
11.7
152.3
0.0
152.3
40.5
26.6
111.3
23.5
Q4FY16
419.2
6.5
425.7
95.5
22.4
330.3
77.6
69.0
16.2
120.7
28.3
285.1
67.0
140.6
33.0
2.6
1.1
12.1
130.1
0.0
130.1
24.9
19.1
107.5
25.3
Q1FY17
454.2
16.8
471.0
99.4
21.1
371.7
78.9
70.3
14.9
134.8
28.6
304.5
64.6
166.6
35.4
2.4
1.1
13.0
154.9
0.0
154.9
38.5
24.8
119.6
25.4
YoY (%)
25.1
98.2
26.8
10.9
-303 bps
31.9
303 bps
28.6
21 bps
39.3
257 bps
26.3
-26 bps
27.7
26 bps
-51.6
0.0
-1.7
27.9
19.6
-5.6
-662 bps
67.3
614 bps
SWOT Analysis
Strengths - Industry beating growth on a consistent basis, focused
approach in the exports space, high return ratios, knack of launching new
products on a consistent basis
Weakness - High product concentration.
Opportunities - The US generics space.
Threats - Extension of NLEM scope to include some of its flagship
products, government driven price controls in some of the export markets
Page 8
Brands Registered
1190.0
334.0
Major Segments
Antibiotic, Anti-malaria, Cardiac, Gynocology
Antibiotic, Derma, Pain, OTC, Ophthal, Cardiac, GI
Segment
Formulations
Mauritius
Dahej (upcoming)
Guwahati (upcoming)
Aurangabad
Formulations
Formulations
Formulations
API
Regulatory Approvals
US FDA, UK MHRA, health authorities
of Brazil and Colombia, WHO prequalification
Type
tablets, capsules,
ointments, injections and
dry powder
WHO
Page 9
Valuation
Q1 has witnessed the strongest ever gross margins, which were primarily
due to a better product mix. The company is currently passing through a
stretched phase of capex across two or three years to bolster the
domestic business as well as exports franchise, especially the US. With a
strong balance sheet and high return ratios, we believe the time is ripe for
the company to enter the capex cycle the benefit of which are likely to
pan out beyond FY18. We maintain our target of | 1780 based on 28x
FY18E EPS of | 63.5. At the current level, the stock has already factored in
the near term upside.
Exhibit 16: One year forward PE
[
3000
2500
2000
(|)
1500
1000
500
Price
45.7x
36.1x
26.5x
Jan-16
Jul-15
Jan-15
Jul-14
Jan-14
Jul-13
Jan-13
Jul-12
Jan-12
Jul-11
Jan-11
Jul-10
Jan-10
Jul-09
Jan-09
Jul-08
Jan-08
Jul-07
Jan-07
Jul-06
16.9x
Exhibit 17: One year forward PE of company vs. CNX Pharma Index
45
40
35
30
25
20
15
10
5
0
Ajanta
Jan-16
Jul-15
Jan-15
Jul-14
Jan-14
Jul-13
Jan-13
Jul-12
Jan-12
Jul-11
Jan-11
Jul-10
Jan-10
Jul-09
Jan-09
Jul-08
Jan-08
Jul-07
Jan-07
Jul-06
Premium 26.7%
CNX Pharma
FY15
FY16
FY17E
FY18E
Revenues
(| crore)
1481
1728
2024
2406
Growth
(%)
22.5
16.7
17.2
18.8
EPS
(|)
36.0
45.4
52.8
63.5
Growth
(%)
32.5
29.5
15.4
21.2
P/E EV/EBITDA
(x)
(X)
48.4
29.5
37.4
25.8
32.2
21.6
26.7
18.3
RoNW
(%)
37.8
34.2
30.2
28.1
Page 10
RoCE
(%)
50.3
42.9
37.2
35.3
Company snapshot
2,500
80.0
70.0
60.0
50.0
1,500
40.0
1,000
(%)
(|)
2,000
30.0
20.0
500
10.0
0.0
Jul-14
Sep-14
Dec-14
Price
Feb-15
May-15
Idirect target
Jul-15
Sep-15
Dec-15
Feb-16
May-16
Jul-16
Key events
Date
Jun-08
Event
Commissions dedicated R&D facility in Kandivali, Mumbai
Mar-09
Mar-09
Mar-10
Dec-12
Enters regulated markets with first product approval in the US and one for Europe.
Mar-13
Jan-15
Top 10 Shareholders
Shareholding Pattern
Rank
1
2
3
4
5
6
7
8
9
10
(in %)
Promoter
Others
Investor Name
Latest Filing Date % O/S Position
Position Change
Agrawal (Mannalal B)
30-Jun
9.6
8.5m
0.0m
Agrawal (Madhusudan B)
30-Jun
9.6
8.5m
0.0m
Agrawal (Purushottam B)
30-Jun
9.6
8.4m
0.0m
Gabs Investments Pvt. Ltd.
30-Jun
9.5
8.4m
0.0m
Agrawal (Manisha Yogesh)
30-Jun
7.8
6.8m
5.1m
Agrawal (Rajesh)
30-Jun
7.3
6.4m
0.0m
Agrawal (Yogesh Mannalal)
30-Jun
7.3
6.4m
0.0m
Agrawal (Mansiha Yogesh & Richa Ravi & Aayu
31-Mar
5.8
5.1m
0.0m
Matthews International Capital Management, L.
31-Mar
3.5
3.1m
0.0m
Agrawal (Ravi P)
30-Jun
3.1
2.8m
0.0m
Recent Activity
Buys
Investor name
Agrawal (Manisha Yogesh)
Norges Bank Investment Management (NBIM)
Reliance Nippon Life Asset Management Limited
Artisan Partners Limited Partnership
The Vanguard Group, Inc.
Sells
Value ($)
Shares
Investor name
114.3m
5.1m William Blair Investment Management, LLC
1.7m
0.1m Matthews International Capital Management, L.L.C.
0.9m
0.0m JM Financial Asset Management Pvt. Ltd.
0.9m
0.0m Fidelity Management & Research Company
0.9m
0.0m Acadian Asset Management LLC
Value ($)
Shares
-7.2m
-0.4m
-1.0m
0.0m
-0.8m
0.0m
-0.2m
0.0m
-0.2m
0.0m
Page 11
Financial summary
Profit and loss statement
(Year-end March)/ (| crore)
Total Operating Income
Growth (%)
Raw Material Expenses
Gross Profit
Gross Profit Margins (%)
Employee Expenses
Other Expenditure
Total Operating Expenditure
EBITDA
Growth (%)
Interest
Depreciation
Other Income
PBT before Exceptional Items
Less: Exceptional Items
PBT after Exceptional Items
Total Tax
PAT before MI
PAT
Growth (%)
EPS (Adjusted)
| Crore
FY15
1,480.6
22.5
365.4
1,115.1
75.3
200.6
409.3
975.3
505.2
37.0
5.9
51.6
16.8
464.5
8.5
456.0
146.2
309.9
FY16
1,727.5
16.7
413.8
1,313.7
76.0
257.0
476.3
1,147.2
580.4
14.9
4.9
45.1
17.0
547.4
0.0
547.4
146.0
401.4
FY17E
2,024.2
17.2
485.2
1,539.1
76.0
290.4
564.6
1,340.2
684.0
17.9
5.2
75.8
10.2
613.2
0.0
613.2
150.0
463.2
FY18E
2,405.8
18.8
592.3
1,813.6
75.4
336.8
673.3
1,602.4
803.4
17.5
5.6
107.4
48.1
738.6
0.0
738.6
177.3
561.3
309.9
32.5
36.0
401.4
29.5
45.4
463.2
15.4
52.8
561.3
21.2
63.5
| Crore
FY15
309.9
51.6
-77.3
-6.7
5.9
283.5
FY16
401.4
45.1
-172.1
-17.1
4.9
262.2
FY17E
466.2
75.8
-103.7
189.5
5.2
633.0
FY18E
561.3
107.4
-152.4
98.6
0.0
614.9
-2.0
-4.5
-103.6
1.9
-101.9
-12.6
-6.9
-244.0
-2.2
-277.5
-49.3
0.0
-300.0
0.0
-349.3
0.0
-200.0
-375.0
0.0
-575.0
(inc)/Dec in Loan
Dividend & Dividend tax
Other
CF from Financing activities
-58.1
-41.1
-6.0
-105.2
20.6
-82.1
-4.9
-66.5
0.0
-93.1
-5.2
-98.3
0.0
-112.1
0.0
-112.1
76.4
60.4
136.8
179.9
-81.8
136.8
55.0
18.2
185.5
55.0
240.4
333.0
-72.1
240.4
168.3
239.9
FY15
FY16
FY17E
FY18E
35.1
29.1
95.2
15.5
7.0
45.4
36.1
132.7
6.2
9.3
52.8
42.2
174.9
27.2
10.5
63.5
50.8
225.7
19.0
12.7
75.3
34.1
21.5
39.2
63.8
26.9
1.6
56.1
76.0
33.6
23.2
43.2
78.7
30.8
1.3
45.2
76.0
33.8
23.0
59.1
62.3
53.7
1.2
92.5
75.4
33.4
23.3
59.5
62.7
54.1
1.1
76.5
37.8
50.3
74.4
34.2
42.9
57.8
30.2
37.2
59.9
28.1
35.3
55.2
48.4
29.5
10.1
10.1
17.8
37.4
25.8
8.7
8.7
12.8
32.2
21.6
7.3
7.4
9.7
26.7
18.3
6.1
6.2
7.5
0.1
0.1
2.3
1.5
0.2
0.1
3.3
2.3
0.1
0.1
1.9
1.1
0.1
0.0
1.9
1.1
Balance sheet
| Crore
FY15
FY16
FY17E
FY18E
Equity Capital
Reserve and Surplus
Total Shareholders funds
Total Debt
Deferred Tax Liability
Long-Term Provisions
Other Non Current Liabilities
Source of Funds
17.7
823.4
841.1
72.4
15.2
4.8
2.5
935.9
17.7
1,154.4
1,172.1
92.9
20.0
2.6
0.5
1,288.0
17.7
1,527.5
1,545.2
92.9
20.0
2.6
0.5
1,661.2
17.7
1,976.8
1,994.4
92.9
20.0
2.6
0.5
2,110.4
Gross Block
Accumulated Depreciation
Net Block
Capital WIP
Fixed Assets
Investments
Long Term Loans and Advances
Other non-Current Assets
Inventory
Debtors
Loans and Advances
Other Current Assets
Cash
Total Current Assets
Creditors
Provisions
Other Current Liabilities
Total Current Liabilities
Net Current Assets
Application of Funds
549.9
261.8
288.1
170.2
458.3
59.5
9.3
5.3
159.0
258.8
50.5
8.9
136.8
613.9
109.1
64.3
37.1
210.5
403.5
935.9
724.2
272.6
451.6
239.8
691.4
66.4
21.9
4.3
204.6
372.4
64.9
0.7
55.0
697.5
145.6
11.4
36.5
193.4
504.1
1,288.0
924.2
348.5
575.7
339.8
915.5
66.4
71.2
4.3
327.6
345.5
71.2
2.0
240.4
986.7
297.8
38.7
46.4
382.9
603.8
1,661.2
1,224.2
455.9
768.3
414.8
1,183.1
266.4
71.2
4.3
392.0
413.4
91.2
2.0
168.3
1,066.9
356.4
58.7
66.4
481.5
585.4
2,110.4
Key ratios
(Year-end March)
Per share data (|)
Reported EPS
Cash EPS
BV per share
Cash per Share
Dividend per share
Operating Ratios (%)
Gross Profit Margins
EBITDA margins
PAT Margins
Inventory days
Debtor days
Creditor days
Asset Turnover
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
Quick Ratio
Page 12
I-Direct
Code
CMP
(|)
TP
(|)
Rating
M Cap
(| Cr)
EPS (|)
PE(x)
EV/EBITDA (x)
RoCE (%)
RoE (%)
FY16 FY17E FY18E FY16 FY17E FY18E FY16 FY17E FY18E FY16 FY17E FY18E FY16 FY17E FY18E
Ajanta Pharma
14968.3
45.4
52.8
63.5
37.4
32.2
26.8
25.8
21.6
18.3
42.9
37.2
35.3
34.2
30.2
Apollo Hospitals
18823.6
22.2
33.1
48.2
60.9
40.9
28.1
26.4
19.7
15.4
8.2
10.4
13.2
8.9
12.0
28.1
15.2
Aurobindo Pharma
AURPHA
785
990
Buy
45909.5
33.9
37.0
39.8
23.1
21.2
19.7
24.8
22.7
20.9
25.0
24.3
23.9
28.1
23.9
20.8
Alembic Pharma
ALEMPHA 594
620
Hold
11191.3
38.2
20.0
25.7
15.6
29.6
23.1
12.4
22.3
18.0
51.5
22.8
25.0
44.9
20.2
21.9
Biocon
BIOCON
806
800
Hold
16111.0
22.5
33.3
37.2
35.8
24.2
21.6
10.5
7.9
6.6
9.1
12.4
13.0
11.1
14.7
14.7
Cadila Healthcare
Cipla
CADHEA
CIPLA
375
523
390
470
Buy
Hold
38390.4
42032.9
15.0
18.8
16.4
19.1
20.7
25.4
25.1
27.9
22.9
27.4
18.1
20.6
14.7
17.9
13.9
16.6
11.0
13.1
26.7
12.1
24.8
12.5
28.3
15.6
28.6
12.7
25.4
11.7
26.0
13.7
Divi's Laboratories
DIVLAB
1184 1,260
Buy
31435.5
41.7
45.9
52.6
28.4
25.8
22.5
21.0
18.4
15.8
30.6
29.2
28.5
25.8
23.6
22.7
Dr Reddy's Labs
Buy
56720.4
20.9
21.8
17.9
14.7
14.2
11.6
17.3
17.0
20.1
20.7
17.1
17.3
Glenmark Pharma
GLEPHA
858 1,000
Buy
23789.4
32.2
41.2
51.1
26.7
20.8
16.8
15.8
13.1
10.7
16.2
19.0
20.9
21.2
21.6
21.3
Indoco Remedies
INDREM
316
365
Buy
2912.4
9.0
14.9
20.7
35.1
21.3
15.3
15.4
10.8
8.3
12.5
19.0
25.0
14.2
19.8
22.6
IPCLAB
483
455
Hold
6096.7
10.0
25.2
33.4
48.2
19.2
14.5
19.8
11.9
9.2
5.7
12.2
15.8
5.5
12.7
15.0
VAMORG
328
405
Buy
5221.9
26.0
36.4
46.1
12.6
9.0
7.1
7.2
6.2
5.2
12.0
14.0
15.6
14.2
16.9
17.8
Buy
76660.0
50.4
67.9
75.0
33.7
25.0
22.7
20.4
13.9
12.3
18.6
23.0
23.3
20.7
22.6
20.0
Ipca Laboratories
Jubilant Life Sciences
Lupin
LUPIN
1700 1,850
Natco Pharma
NATPHA
591
600
Buy
10285.0
8.9
10.9
12.9
66.3
54.1
45.8
36.8
33.2
28.1
16.1
16.4
17.1
12.0
13.0
13.6
Sun Pharma
SUNPHA
800
785
Hold
192444.1
23.4
26.6
30.8
34.1
30.0
26.0
20.4
17.4
15.0
18.6
19.9
19.9
18.0
17.5
17.3
Syngene International
SYNINT
418
445
Buy
8364.0
11.1
15.8
18.5
38.4
26.9
23.0
23.5
18.8
14.9
13.2
17.4
17.9
21.0
23.6
22.1
Torrent Pharma
Buy
24735.7
107.8
70.6
76.0
13.6
20.7
19.2
9.0
14.0
13.0
46.7
29.5
28.4
53.8
27.8
24.5
Buy
2600.4
12.3
15.3
21.1
23.2
18.8
13.6
16.3
13.2
9.5
13.8
15.7
18.9
11.7
12.9
15.5
Unichem Laboratories
UNILAB 286 340
Source: Company, ICICIdirect.com Research
Page 13
RATING RATIONALE
Pankaj Pandey
Head Research
pankaj.pandey@icicisecurities.com
Page 14
ANALYST CERTIFICATION
We /I, Siddhant Khandekar, CA Inter and Mitesh Shah, MS (finance), 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 15