Firstcall Research is bullish on Sharon Bio Medicine and has recommended buy rating on the stock with a target of Rs 458 in its August 27, 2012 research report.
“Sharon Bio-Medicine Ltd is a pharmaceutical company which commenced as a manufacturing of Pharma Intermediates in 1995. In the year 2000 the company set up a R&D Block to carry out Process synthesis for API’s & Intermediates. The company’s research team constantly seeks development of non-infringing routes for APIs in therapeutic segments like cardiovascular diseases and anti-ulcerants. It also offers contract manufacturing for finished dosage forms; viz. tablets, capsules & injectables. Sharon also has recently started an Animal Toxicology Lab Operating as per GLP requirements. Sharon is predominantly known for its strengths in development & manufacturing of Pharmaceutical products in category of Intermediates & Actives. In 2007 it commissioned its first finished products manufacturing facility at Dehradoon, Uttarakhand, India. With setting and successful commercialization of the solid dosage formulation facility at Dehradun, its formulations are now being marketed in Africa, Latin America and other markets.”
“The company’s Unit-1 API plant is compliant with ISO 9001:2000 and its Formulation plant is approved by WHOGMP and had been certified by various authorities such as INVIMA, SFDA etc. Growing at around 50% year on year Sharon now has an annual turnover of over $100 million, a work force of over 500 personnel, operations spanning across seven locations in India & one overseas location and a market presence in over 40 countries.”
“Sharon Bio-Medicine Ltd is a pharmaceutical company which commenced as a manufacturing of Pharma Intermediates in 1995 in India, reported its financial results for the quarter ended 30 June, 2012. The forth quarter witness a healthy increase in overall sales as well as profitability on account, an enhanced Dealers network and robust infrastructural Support system. The company’s net profit jumps to Rs.118.48 million against Rs.85.16 million in the corresponding quarter ending of previous year, an increase of 39.13%. Revenue for the quarter rose 32.40% to Rs.2090.76 million from Rs.1579.18 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.11.22 a share during the quarter, registering 39.13% increase over previous year period. Profit before interest, depreciation and tax is Rs.247.43 millions as against Rs.201.11 millions in the corresponding period of the previous year.”
“India's pharmaceutical sector is gaining its position as a global leader. The pharma market in India is expected to touch US$ 74 billion in sales by 2020 from the current US$ 11 billion, according to a PricewaterhouseCoopers (PwC) report. At the current market price of Rs. 405.00, the stock P/E ratio is at 8.29 x FY13E and 7.05 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.48.84 and Rs.57.43 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 19% and 25% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 3.92 x for FY13E and 3.48 x for FY14E. Price to Book Value of the stock is expected to be at 1.80 x and 1.43 x respectively for FY13E and FY14E.”
“The fourth quarter witness a healthy increase in overall sales as well as profitability on account of powerful combination of exciting products, an enhanced store network and robust infrastructural Support system. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 458 for medium to long term investment,” says Firstcall Research report.
Public holding more than 90% in Indian cos
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