Financial Results with Results Press Release & Limited Review for Dec 31, 2013
Link: Click Here
Communication to investors - Dec 2013
Link: Click Here
Don't see over 40% margins; open to partnerships: Suven
Link: Click Here
Much to the expectations of markets, Suven came out with another strong set of numbers. The reactions on stock after the results suggested that, it was almost expected. More than four-fold jump in net profit was almost a non-event, at least for today.
Revenues stood at 119.42 Cr Vs 62.39 Cr YoY, registering the growth of 92%.
Net Profit stood at 36.43 Cr Vs 7.75 Cr YoY, registering the growth of 370%.
EPS stood at 3.12 from 0.66 YoY.
For the nine months ended in FY14 so far Vs nine months of FY13,
Revenues has grown by 109%.
Net Profit has grown by 403%.
R&D expenditure has grown by 43%.
The growth in profit was a result of prelaunch supplies of 3 products under CRAMS, as per management.
Suven’s major thrust on innovative R&D in Drug Discovery continues with a spending of 35.6 Cr
(9.27% on revenue) for the nine months period ended Dec ’2013.
Suven has 614 product patents for 18 inventions and 35 process patents.
The number of active CRAMS project during the period was 98.
SUVN-502 undergoing phase 1b clinical trial in USA.
In addition to this, the interview with management, as seen in link above, draws a good picture regarding company's future.
My Views:
Not much to say after what is mentioned above. The numbers speaks for itself. The stock was trading around 24, when it was suggested on this blog around Jun '13:
http://fundamentalstockideas.in/few-more-multibaggers-for-long-term/
The management has been able to justify the price rise, and hence the stock is able to stay around all time high levels, even after posting a 200% price jump in past 8 months.
Most importantly, being a small cap company, they have managed to show very strong margins, which is why, they have been highly appreciated by the investors. The R&D expense continues to impress, and forcing us to stay invested with the company for long term.
Recommending a hold on this stock for now, and raising the target of 100 Rs for now.
Fair set of numbers by Dhanuka Agritech...
ReplyDeleteRevenues grew of 20%, but net profit was a surprise....
It grew by 82%....
Recommending a buy on dips/ hold for long term....
Disastrous set of numbers declared by Thangamayil yesterday....
ReplyDeleteIf we just blame the macro-economic conditions, than we should lookat their peers also....
TBZ declared their numbers just a day prior to Thangamayil, and they also failed to show the positive growth, but atleast the company showed a flat decline, when compared to Thangamayil...
For Thangamayil, the revenues were almost reduced to half when compared with last year same quarter...
Nothing positive in terms of growth, the only hope is promoter activity, where they are seen accumulating shares in good quantity....
But that also, might be because they want to stop their share from falling further...
We dont know....
Investors who are hopeful with country again going back to normal policies on gold import, if CAD improves, can continue to hold, or else, it won't be a bad move to quit right now, and get back again, when thing are looking better..