suven pharma research presentation india equity.pptx

Research of a company

1. Partnering Drug Development, Manufacturing ……and beyond! SUVEN PHARMACEUTICALS LIMITED

2. BUSINESS PROSPECTS Suven Pharmaceuticals Limited, a company incorporated in November 2018, has become Wholly Owned Subsidiary of Suven Life Sciences Limited, effective February 2019. Suven Pharmaceuticals is focused on the business of Contract development and Manufacturing operations (CDMO) and CRAMS specialty chemicals and formulation business. Four commercial molecules in the CDMO segment are all under patent protection up to 2025. Suven is among the two suppliers of intermediates to these molecules.

3. Business Prospectus Post Demerger Innovation & Patenting Pre-clinical Development Human clinical studies Regulatory/commercial launch NCE Research Process Research/ custom synthesis Specialty Chemicals/ API Formulation Development Formulation Commercial Contract Development & Manufacturing Operation

4. FINANCIAL ANALYSIS Particulars (figures in INR) Market capitalization 13170 cr. Current price Rs.496 Book value Rs . 45 52 week H/L 565/153 Equity Capital 25.5 cr. Face Value 1 Mid range momentum 70.61% away from 52 week low 12.27% away from 52 week high

5. SHAREHOLDING PATTERN Promoters - 60% Institutions – 12.5% Non Institutions – 27.5% Total = 100.0%

6. Profit & loss Figures in cr. 2019 2020 2021 Sales 378 834 1,009 EBITDA ----- 384.8 442.4 EBITDA Margin (%) ----- 46.1 43.8 Net Profit 109 317 362 Net Profit Margin 28.83% 38.00% 35.87% Net profit margin = Net profit/Net sales*100 Rating - 4/5 (5% is low, 10% is healthy Margin, 20% is considered higher/good Margin) Balance Sheet Figures in cr. 2019 2020 2021 Equity Capital ------- 13 25.5 Reserve 578 832 1,155.4 Total Debt 83 185 141.2 Net Fixed Assets 271 357 384 Capital WIP 111 102 96.3 Investment 307 541

7. Cash Flow Statement Figures in cr. 2019 2020 2021 Cash from Operating Activity 50 416 383.4 Cash from Investing Activity -65 -421.1 -311.3 Cash from Financing Activity 26 6.4 -76.6 Net Cash Flow 11 1.2 -4.4 Closing Cash 14.1 14.1 9.7 Historical Growths Compounded Sales Growth - 21.1% Compounded Profit Growth - 14.3% Compounded Expense Growth – 26.39% Stock Price CAGR - 69.77%

8. KEY FINANCIAL RATIO RATIO Remark DESCRIPTION EPS 14.2 Higher earning /share is better The amount of net income earned per share of stock outstanding. RoE 30.7 Higher is better The return on equity is a measure of the profitability of a business in relation to the equity RoCE 31.2 Higher is better A profitability ratio measure how efficiently a company is suing its capital to generate profits. RoIC 38.2 Higher is better Ratio that calculate how profitably a company invests the money it receives from its shareholders. P/E 33.2 Higher is better Ratio for valuing a company that measure its current share price relative to its per share earnings Current Ratio 3.3 >2 is good <2 is not good A liquidity ratio that measure a company's ability to pay short term obligations. Debt Equity Ratio 0.1 >2 is good <2 is not good The debt-equity ratio is a measure of the relative contribution of the creditors and shareholders or owners in the capital employed in business.

9. MANAGEMENT ANALYSIS ID/TD DIRECT0R = 4 INDEPENDENT DIRECTOR = 2 (33%) TOTAL = 6 RATING =1.7/5 Directors Salary (in lakhs) Shri Venkateswarlu Jasti 334.50 Shri DG Prasad 2.80 Shri Srivari Chandrasekhar 0.90 Smt Deepanwita Chattopadhyay 1.90 Shri JV Ramudu 2.70

10. CONCLUSION The company’s share is fair valued, so it is good to buy this company’s share for a long term investment This company is into contract manufacturing and brings 3-4 molecules every year. Best margin in industry – EBITDA 45% Company is debt free and return of equity is around 38% The company is commercializing a specialized facility to vizag to manufacture advanced API’s and expect revenue growth of 10 to 15 %

11. SUBMITTED TO HIMANSHU SIR BY MONA