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Company Description
Albert David Ltd (ADL) is a Kolkata based pharmaceutical
company.
The
Company
manufactures
pharmaceutical
formulations and bulk drugs in its Kolkata manufacturing unit;
infusion solutions and oral solids at Ghaziabad factory;
disposable syringes and needles at Mandideep plant, and herbal
Buy
Closing price
Rs. 256
Target price
Rs. 363
Potential upside
42%
Company Information
BSE Code
524075
NSE Code
Not Listed
Bloomberg Code
ISIN
ALBRT IN
INE155C01010
139.03
Outstanding shares(Cr)
0.6
256.0 / 100.0
Investment Rationale
Ashika Stock Broking Limited
Recommendation
Book Value
12272
10
158.2
The company has posted a strong result for Q2FY15 with sales
increasing by 10.3% YoY to Rs. 292.3 cr. due to higher volume.
Operating profit of the company grew by 22.6% to Rs. 31.4 cr.
due to lower raw material expense and other expense. The
company showed 46.8% YoY growth in its Net Profit from Rs. 8.6
cr to Rs. 12.6 cr due to lower depreciation and tax expenses. The
companys operating profit margin increased by 108bps to
10.7% and net profit margin by 107bps to 4.3%. Given high
growth in pharma sector, we expect ADL will be able to sustain
such growth in the coming future.
FY13
FY14
FY15E
FY16E
265.07
292.27
328.67
369.60
Growth (%)
15%
10%
12%
12%
EBITDA
26.3
31.4
36.30
41.96
9.92%
10.74%
11.04%
11.35%
8.6
12.6
16.1
20.7
3.23%
4.30%
4.91%
5.60%
15.00
22.03
28.26
36.27
Flagship Product
Placentrex is one of the core products for ADL, which is used to treat pelvic
inflammation and wounds and is manufactured from human placental extract. The
company product portfolio comprises brands like Evict (laxative), Sioplex (vitamin),
Siooxy (anti-oxidant) and herbal products. Major part of companys business relates to
formulation segment. Regarding geographical segment, export sales constitute less
than 10% of the total sales of the company. Large Volume Injectibles constitutes 33%
of sales followed by Liquids that constitutes 15% of sales.
Credit Profile
CRISIL Limited has affirmed [CRISIL A2+] (pronounced as CRISIL A Two Plus) in respect
of Short Term rating and [CRISIL A-] (pronounced as CRISIL A Minus/Stable) in respect of
Long Term rating. This rating indicates strong degree of safety regarding timely
payment of financial obligations. Such instruments carry low credit risk.
Key Risks
The Indian Pharmaceutical market is highly fragmented and as more players enter
in the industry, the landscape is becoming increasingly competitive. Certain
brands and therapy segments are facing stiff competition.
1008, Raheja Centre, 214, Nariman Point, Mumbai-400 021, Ph- 022 6611 1700, Extn. - 704 www.ashikagroup.com
scrip with a target price of Rs. 363 from 12 months investment perspective.
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1008, Raheja Centre, 214, Nariman Point, Mumbai-400 021, Ph- 022 6611 1700, Extn. - 704 www.ashikagroup.com