Unichem Laboratories Q3FY17: Fundamental Analysis - Firstcall India Equity

Firstcall India Equity | May 18, 2016, midnight


SYNOPSIS

  • Unichem Laboratories Ltd is engaged in manufacturing formulations, active pharmaceutical ingredients (APIs) and pharmaceuticals.
  • Revenue for the 3rd quarter rose by 16.40% to Rs. 3599.21 mn from Rs. 3092.18 mn, when compared with the prior year period.
  • During the quarter, EBIDTA is Rs. 485.51 mn as against Rs. 388.16 mn in the corresponding period of the previous year.
  • During Q3 FY17, net profit increased to Rs. 261.08 mn from Rs. 206.68 mn in the corresponding quarter ending of previous year, higher by 26.32%.
  • During Q3 F Y17, Profit before tax was increased by 40.13% to Rs. 376.48 mn from Rs. 268.68 mn in Q3 FY16.
  • EPS of the company stood at Rs. 2.87 during the quarter, as against Rs. 2.28 per share over previous year period.
  • During the quarter 2 ANDAs were filed. Cumulative filings of ANDAs stood at 38 of which 21 ANDAs are approved. Cumulative filings of DMFs stood at 47.
  • For the nine months ended December 31, 2016, Net Sales stood at Rs. 10699.26 mn from Rs. 9271.68 mn in the corresponding period of last year.
  • Net Profit during 9M FY17 stood at Rs. 724.03 mn as compared to Rs. 727.54 mn for the nine months ended 31st December 2015.
  • Net Sales of the company is expected to grow at a CAGR of 11% over 2015 to 2018E.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 275.10, the stock P/E ratio is at 23.94 x FY17E and 21.36 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 11.49 and Rs. 12.88 respectively.
  • Net Sales of the company is expected to grow at a CAGR of 11% over 2015 to 2018E.
  • On the basis of EV/EBITDA, the stock trades at 12.86 x for FY17E and 11.55 x for FY18E.
  • Price to Book Value of the stock is expected to be at 2.21 x and 2.00 x for FY17E and FY18E respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

 

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