This company was established in 1960 is a Bulk Drugs Manufacturing Company, is one of the largest manufacturers of Macrolides and Anti-TB products in India, besides being a major player in Anti-Bacterial, Anti-Malarial, and Corticosteroids. The company is part of the INR 8.5 bn SK Group of Companies, which employs 2000+ people across businesses such as Manufacturing of API‘s, medicinal chemical and botanical products, Pharma Formulations, Distribution and Logistics (primarily for large MNC brands).
Market leader and Competitive advantage:
· Anuh pharma is a market leader in many formulations such as Erythromycin salts, Pyrazinamide, Sulfadoxine, Ambroxol HCL, Gliclazide, Clobetasol Propionate and Betamethasone Dipropionate.
· The company has all the regulatory approvals and Environmental clearance.
· Financially strong company with strong R&D capabilities.
· Well diversified sourcing with backward integration in key products.
Key Numbers and Ratios:
The Current Market Price of Anuh Pharma Ltd is Rs 253 at the time of writing this article. Let’s have a look at the key numbers:
|
Current Price |
Rs 253 |
|
Book Value |
Rs 58.1 |
|
Market Cap |
Rs 1266 Cr |
|
PE |
21.1 |
|
PEG |
0.95 |
|
Debt to Equity |
0.01 |
|
OPM |
11.6% |
|
ROCE |
29.4% |
|
ROE |
22.6% |
|
Current Ratio |
2.20 |
|
Promoter Holding |
69.9% |
|
DII Holding |
0.10% |
|
FII Holding |
0.03% |
Positives:
§ A company with a market capitalization of Rs 1266 Cr is generating sales of around Rs 647 Cr in the last FY-2023-24, increased from 527 Cr previous year, which is a sales growth of 21% on YoY basis.
§ Company has almost negligible debt of 3 Cr against a reserve of Rs 266 Cr. The current Debt to Equity ratio of the company is 0.01.
§ Previous five, three and TTM Revenue Growth of 15%, 14% and 23% respectively.
§ Last three-year profit growth of 39% and ROE of 17%.
§ EPS (Earning per share) has increased from 7.22 in last 2022-23 to 11.99 in FY 2023-24
Negatives:
Working Capital days, which is the number of days a company takes to convert its working capital into revenue, has increased from 61 to 99, which slows down the capital cycle.
Future Potential:
§ Company is planning a additional Capex of 20 Cr in existing site for capacity addition, which will add 70 KL of additional volume.
§ Company is focussing on deeper penetration in European Markets. With addition of new products which has a strong demand in these markets, company management is positive on the future outlook of the company.
§ The R&D department of the company is expected to give approx. 9 new products in various segments such as anti-diabetics in the current FY
§ Increase in contribution from new Geographies especially in Japan, Vietnam and South Korea.
Possible future challenges:
§ Government interventions to regulate drug prices and promote accessibility often leads to pricing pressures for pharmaceutical companies. Price controls on essential medicines and negotiations with regulatory bodies impact profit margins and investment in research and development.
§ The prevalence of counterfeit drugs in the market poses risks to public health and undermines the reputation of the pharmaceutical industry.
Growth Prospects and Future Outlook:
The pharmaceutical sector is poised for sustained growth and innovation, due to growing demand, demographic trends, technological advancements, regulatory reforms, and evolving healthcare needs.
Multibagger takeaway:
With continued investment in Research and Development, strategic collaborations, and market expansion strategies, Anuh pharma can very well capitalize the available opportunities by addressing day by day emerging health challenges. The finances of a company are in a very healthy state and with new product launches and tapping new markets speaks well for the future of this pharma company. Considering the opportunities available, investors can bet on this pharma stock for creating a long-term wealth.