MARKSANS PHARMA LLTD - Q1 FY 21 RESULTS REVIEW

MARKSANS PHARMA

Q1 FY 21 RESULTS REVIEW

 

Marksans Pharma Limited is engaged in Research, Manufacturing & Marketing of generic pharmaceutical formulation in the global markets.

Its manufacturing facilities are approved by several leading regulatory agencies including USFDA, UKMHRA and Australian TGA. Its robust product portfolio spreads over major therapeutic segments of CVS, CNS, Antidiabetic, Pain Management, Gastroenterological and Anti-allergies.

The company is marketing these products globally.

Management

    Mark Saldanha  :  Chairman & Managing Director

    Sandra Saldanha  :      Whole Time Director

    Varddhman Vikramaditya Jain :  Whole Time Director

RESULTS

Marksans Pharma (in Rs. Cr.)	Jun '20	Mar '20	Jun '19	YOY	QOQ
Net Sales	331	335	245	35.15	-1.25
N P T	49.37	42.7	22.5	119.6	15.5
Equity	40.93	40.93	40.93	0	0
Basic EPS	1.2	1	0.52	130.77	20
MP	43.65
PE	9.09
VOLUMES	8,425,143
52 Wk L/H	9.9	43.65

 

Historical Prices

                     1YR BEF Current Price: %Gain / Loss

Open Price    17.00     43.65     156.76

                     2YR BEF

Open Price    29.25     43.65     49.23

                     3 YR BEF

Open Price    41.45     43.65     5.31

                     3 M BEF

Open Price    19.75     43.65     121.01

Share Holding Pattern in (%)

Standalone	March 2020	December 2019	June 2019	March 2019
Promoters	48.25	48.25	48.25	48.25
Pledged	0	0	0	0
FII/FPI	2.48	2.38	2.66	2.72
Total DII	7.79	6.36	7.57	7.82
Fin.Insts	0.64	0.39	0.29	0.4
Insurance Co	0	0	0	0
MF	0	0	0	0
Others DIIs	7.15	5.97	7.28	7.42
Others	41.48	43.01	41.52	41.21
Total	100	100	100	100

 

SWOT ANALYSIS

STRENGTHS

• high TTM EPS Growth
• High Return on Equity (ROE) and EPS Growth
• Return on equity (ROE) improving since last 2 year
• ROA improving since last 2 year
• Growth in Net Profit with increasing Profit Margin (QoQ) AND YOY
• Company with Low Debt
• Increasing profits every quarter for the past 4 quarters
• Increasing Revenue every quarter for the past 3 quarters
• Annual Net Profits improving for last 2 years
• Book Value per share Improving for last 2 years
• Company with Zero Promoter Pledge
• FII / FPI or Institutions increasing their shareholding
• Stock gained more than 20% in one month
• Strong PRICE Momentum: Price above short, medium and long term moving averages

 

Steep Upward curve from March 20 only

Valuation

        Market Cap (Rs Cr.)          1,786.65

        P/E                                   46.94

        Book Value (Rs)                      12.35

        Dividend (%)                           10.00

        Industry P/E                     34.85

        EPS (TTM)                                 0.93

        P/C                                   36.07

        Price/Book                                  3.53

        Dividend Yield.(%)                     0.23

        Face Value (RS)`                        1.00

        Deliverables (%)                66.79

PRESS RELEASE

Consolidated Q1 FY21 (Y-o-Y)

=" Total Revenue was Rs. 331.3 Cr as compared to Rs. 247.2 Cr in Q1 FY20, an increase of 34.0%

= EBITDA was Rs. 70.2Cr. as compared to Rs. 34.6 Cr. in Q1 FY20, an increase of 102.9%

=" EBITDA Margin stood at 21.2% for Q1 FY21 as against 14.0% in Q1 FY20

=" PAT stood at Rs. 49.4 Cr. as compared to Rs. 22.5 Cr. in Q1 FY20, a growth of 119.6%

Commenting on the performance Mark Saldanha, Managing Director of the Company said “I am happy to state that we have achieved another quarter of robust performance, wherein we achieved our highest ever EBITDA of Rs.70.2 crores. This was due to all round growth across geographies. | wish to place on record my gratitude to our employees who have tirelessly worked despite the operational challenges faced from the pandemic. We remain cautiously confident of delivering such superior performance going forward.”

 

Business Highlights

=" Company achieved revenue of Rs. 144.2 cr. from Europe, UK: Formulation business in Q1IFY21 as compared to Rs. 100.9 cr. achieved during last year same period registering a growth of 43.0%

=» US & North America Formulation business reported growth of 29.0% to  Rs 133.6 cr. in QIFY21

= Australia & NZ Formulation business revenue was at Rs. 34.1 cr. in QIFY21, registering growth of 10.8% YoY

= Rest of World Formulation business was Rs. 19.4cr. in QIFY21

 

Business Performance

Revenue by Market:

YoY Te                 Q1IFY21        Q1FY20 YOY% Q4FY20 QOQ%

Europe, UK —

Formulations        144.2            100.9     43.0% 149.1 -3.3%  

US & North America —

Formulations        133.6       103.6          29.0% 126.5 5.6%

Australia & NZ —

Formulations               34.1       30.8       10.8% 47.5 -28.2%  

Rest of World (ROW) 19.4         12.0 62.2% 12.3 57.9%

Consolidated Revenue

from operations          331.3     247.2     34.0% 335.4 -1.2%