Professional Documents
Culture Documents
Eurion Constellation
June 2009
Explanations and Disclaimers
This is only an indicative sample ICR and the following specs need attention:
Financial analysis and valuation form the basis of company research and stock
analysis. This work is beyond the scope of the following sample ICR.
Share Data
Cut-throat competition forces XYZ into losses
Market Cap Rs/$ On June 30, 2009, XYZ Pharma Ltd came out with
Price Rs/$ its annual results for the year ended March 31,
BSE/NASDAQ Index Rs/$ 2009, reporting huge losses of Rs/$ mn. In FY 2009,
Scrip Id XYZ the sales grew by approx. 36%, including inorganic
Avg. Vol. (52 Week) growth from the acquisition of MN (Druggists) Ltd
52-Week High/Low Rs/$ and ABC Ltd. However, on account of increased
Shares Outstanding employee cost (105%) and other expenses (46%),
EBITDA fell by 28.7%. some of the increased
expenditure is explained by the acquisition of ABC
Valuation
Ratios
2010E 2011E made during the year. Increase in interest costs by
almost 80% has put further pressure on the net
EPS (Rs.) income, pushing the company into losses.
PE Ratio
Since FY 2007, XYZ has not been able drive its sales
growth in the API (Active Pharmaceuticals
Shareholding (%) Ingredient's) segment organically, mainly due to
stiff competition from countries like China,
Promoters 48.83 oversupply, and resultant, downward pressure on
Individuals 30.14 the prices. The two key acquisitions made in
Non-Institutional 13.98
January and August 2008, have contributed to the
Others 6.76
increase in the top line in FY 2008 and FY 2009, to
FIIs 0.29
some extent.
Year to March FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 E FY 11 E
(Figures in Rs/$ mn, except per share data)
Sales 1,388.3 2,545.3 3021.2 2,525.1 2,704.8
EBITDA 164.2 320.2 394.6 166.6 416.7
Net Income (Adj) 82.6 205.6 228.9 67.9 157.3
Equity 442.5 1,023.1 1,196.3 1,264.2 1,418.5
Margins (%)
EBITDA 11.83 12.57 13.06 6.6 11.02
Net Income 5.95 8.08 7.58 2.69 5.8
ROE 18.67 20.09 19.13 5.37 11.08
Per share data
EPS 0.83 0.57 0.64 0.19 0.43
PE Ratio 5.05x 55.88x 35.5x 26.84x 43.14x
Downside Risks
Advantages
Financial Overview
Stock Performance
Company Background