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Lincoln Pharmaceuticals Limited report

Lincoln pharma India's leading healthcare Set up in the year 1979, the manufacturing facility of Lincoln is based at Khatraj, Gujarat sharing the same dais as with the international standards. There arecompanies has reported standalone net profit of Rs. 50.03 crore for the half year ended 30th September 2024, growth of 7.55% Y-O-Y as compared to the net profit of Rs. 46.52 crore in H1 FY24. Income from operation for the H1 FY25 was reported at Rs. 308.50 crore, higher by 5.79% Y-O-Y over H1 FY24 income from operation of Rs. 291.61 crore. EBITDA for the H1 FY25 ended September 2024 was reported at Rs. 71.50 crore as compared to Rs. 68.25 crore EBITDA in H1 FY24 registering growth of 4.76% Y-O-Y. EPS for H1 FY25 was reported at Rs. 24.96 per share. Shareholders at the 30th Annual General Meeting (AGM) approved a dividend of Rs. 1.80 per share (18%) for the FY 2023-24. As of September 2024, Foreign Institutional Investors (FIIs) have steadily raised their holding in the company to 5.19% from 2.59% as on September 2023. The company aims to reach a revenue target of Rs. 750 crore by FY26 through focused growth strategies, business expansion into high-value product lines, and entry into new markets. Company is also among a very few companies to achieve a profit growth every single year from FY13 to FY24. Commenting on the results and performance,

Management comments

Mr. Mahendra Patel, Managing Director, Lincoln Pharmaceuticals Limited, said, "We are pleased to report continued strong growth across all business verticals H1 FY25, while maintaining a net debt-free status. Our new product launches in domestic and export markets have strengthened our market presence and accelerated growth, positioning us for even better performance during the second half of the year. Through a combination of robust growth initiatives, high-quality products, geographic expansion, and operational improvements, we are on track to achieve our ambitious Rs. 750 crore revenue target by FY26. Notably, we are among a select group of companies that have consistently achieved profit growth every year from FY13 to FY24."

Expansion plan

Lincoln Pharmaceuticals expansion strategy involves registering new products for export, increasing its market presence, and leveraging its state-of-the-art manufacturing facilities to meet international standards. In FY25, company will continue to expand its global and regional footprints while building a strong portfolio in lifestyle and chronic segment especially women healthcare, dermatology to complement its strong presence in the acute segment. The liquidity position of the company is on a strong foundation, supported by healthy cash accruals, no-term debt, and healthy return ratios. Committed to R&D and innovation, company has a strong lineup of over 1,700 registered products and 700 more in development

Export

Lincoln Pharmaceuticals exports to 60+ countries spanning East & West Africa, Central & North America, Latin America, and Southeast Asia. With recent entry into the Canadian market and approvals from TGA - Australia and EU GMP, the company is poised for further global expansion, while also aggressively pursuing product registration for its Cephalosporin plant in Mehsana. These initiatives align with the company's revenue target of Rs. 750 crore for FY26.

Company Outlook

Lincoln Pharmaceuticals is progressing well on its long-term growth roadmap. In FY24, the company will continue to build a strong portfolio in lifestyle and chronic segments especially women healthcare, dermatology to complement its strong presence in the acute segment. Company has set a target of achieving Rs. 750 crore revenue by FY26 while maintaining or improving its

Lincoln Pharmaceuticals Ltd 515-615
Expected level 800
Support 480

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Affle (India) Ltd Company Details

Affle (India) Ltd is a global technology company with a proprietary consumer intelligence platform that delivers consumer engagement, acquisitions and transactions through relevant mobile advertising. The platform aims to enhance returns on marketing investment through contextual mobile ads and also by reducing digital ad fraud. Affle powers unique and integrated consumer journeys for marketers to drive high ROI, measurable outcome-led advertising across global connected devices.The company has been a long-trusted partner for many of the world’s biggest B2C brands across the industry verticals. Affle is enabling innovative, on-the-go and digitally empowered ways for the advertisers to deeply engage with consumers. The company primarily operates in emerging markets like India, South East Asia, Middle East & Africa and LATAM. The company has two business segments : • Consumer platform – The platform provides services such as new consumer conversions (acquisitions, engagements and transactions) through relevant mobile advertising, retargeting existing consumers to complete transactions for e-commerce companies through relevant mobile advertising and an online to offline (“O2O”) platform that converts online consumer engagement into in-store walk-ins. The consumer platform is used by business to consumer (“B2C”) companies across industries, including e-commerce, fin-tech, telecom, media, retail and FMCG companies, both directly and indirectly through their advertising agencies. Some of the customers includes Apollo 24|7, Motilal Oswal, Swiggy, Zepto, Angel One, etc. The company primarily earns revenues from its consumer platform on a Cost Per Converted User (CPCU) basis (contributes ~93% of consumer platform revenue), which comprises user conversions based on consumer acquisition and transaction models. It also earns revenue through awareness and engagement type advertising (Non-CPCU), which comprises cost per thousand impressions (CPM), cost per view (CPV) and cost per click (CPC) models.
Enterprise platform – This platform offers an integrated approach to building audience centric mobile assets and comprise app development for third parties, enabling offline to online commerce for offline businesses with e-commerce aspirations, enterprise grade data analytics for online & offline companies and cloud services . While most of the industry is largely dominated by companies operating on clicks, views and impressions, Affle, with its differentiated business model drives CPCU based conversions for advertisers primarily focused on emerging markets and across the industry verticals. Most of these conversions are deeply linked to the deep funnel matrix which are always post click and post app install CASE STUDY events done by the consumers on their smart devices.

#SALES #GROWTH 5 Year CAGR 49.2%

In FY24, the net sales witnessed a growth of 28.5% YoY and stood at ₹1,843 cr. This was on account of growth in India & Emerging Market and on account of acquisition of YouAppi. Excluding the impact of acquisition, the revenue grew by 15%. The CPCU business witnessed strong momentum resulting in a significant increase in converted users by 22% YoY to 31.3 cr with CPCU rate increased by 10% to ₹56.2. The growth in the CPCU rates was on account of company’s focus towards premium consumers. During Q1 FY25, the net sales witnessed a growth of 27.8% YoY and stood at ₹520 cr. This was on account of growth across all the geographies. Excluding the impact of acquisition, the revenue grew by 20%. The CPCU business witnessed strong momentum resulting in a significant increase in converted users by 32% YoY to 9.1 cr with CPCU rate increased by 4% to ₹57.

#EBITDA #GROWTH 5 Year CAGR 38.6%

In FY24, the EBITDA stood at ₹360 cr, recording a growth of 24.7% YoY. The data & inventory cost (~61% of revenue) and employee costs (~13% of revenue) increased significantly on a YoY basis in line with the revenue growth. They continued to strategically invest in the inventory and data costs as they are calibrating their platform to premium inventory touchpoints. In H2 FY24, the management increased their spending on marketing cost and trade events in the international markets. They would continue to spend in FY25 as well. During Q1 FY25, the EBITDA stood at ₹104.5 cr, recording a growth of 33.8% YoY on account of improved operational efficiencies.

#PAT #GROWTH 5 Year CAGR 43.5%

In FY24, the PAT stood at ₹297 cr, recording a growth of 20.8% YoY. During Q1 FY25, the PAT stood at ₹86.6 cr, recording a growth of 30.9% YoY. Effective tax rate stood higher for the company at 18.7%, and this is going to be the new standard for them.

#EBITDA #MARGIN

in FY24, the EBITDA margin contracted by 61 bps YoY and stood at 19.5%. During Q1 FY25, the EBITDA margin stood at 20.1%. On a YoY basis, there has been a marginal expansion in the EBITDA margin by ~89 bps.

#Management #Comments

The management has a vision to develop the market share and build a robust portfolio of services that will help them to get long term sustainable growth. With the Affle 2.0 strategy, the management is focusing on being a leader in the Indian market, verticalization of AI innovations, penetrate vernacular section of India and create an omni-channel connected ecosystem. The recent fund-raising activity will help to build a robust business structure in the future either through organic or inorganic routes. During the quarter, the management appointed four new board of directors to provide accountability and enhance the depth of expertise.

#Company #Potential

The total global digital ad spend is expected to increase at a CAGR of 16% from $381 bn in 2020 to $785 bn by 2025. • The global average digital ad spend as a percentage of total advertising market is ~63%. • The total advertisement industry in India is expected to grow at a CAGR of 15% from ₹85,769 cr in 2022 to ₹1,13,575 cr by 2025. • The digital ad spends in India as a percentage of total advertising market is ~35% in 2022 which is expected to increase to 42%45% by 2024. This growth is attributed to the consistent improvement in digital infrastructure, government’s push to boost the digital economy, growing internet penetration, rise in smartphone adoption, innovation in mobile technologies and increased adoption of digital payments. • The total digital ad spend in India is expected to grow at a CAGR of 30% from ₹29,784 cr in 2022 to ₹51,110 cr by 2025. • E-Commerce & FMCG makes the biggest contribution to the digital media industry. • Among the digital media advertising format, social media & online video format has been the largest. Online video has seen a strong growth owing to the low-cost smartphones and a high-speed connectivity in India. • Connected TV (CTV) devices represent a growing advertising opportunity thanks to the expansion of free ad-supported streaming TV (FAST) services and the continued growth of premium online video. However, CTV ownership in India is far behind other markets with only 10% of homes owning a CTV set, due to the growth of adoption and usage of smartphones, which had a 60% penetration of population in 2022 that could increase up to 80% in 2026.

#Company #Outlook

Affle 2.0 strategy aims to reach 1,000 crore+ (v/s current 250 crore) connected devices including mobile smart phones, connected TV, smart wearables etc. to enable integrated omni channel online and offline consumer journeys. This strategy would be anchored on: 1) OEM (original equipment manufacturers) partnership – Affle has integrations with most of the 20 OEMs and operators across ecosystem players like Bobble AI keyboard app, 2) Vernacular – target users in their preferred language with ability to detect mixed vernacular language affinity (e.g.: Hindi + English) and 3) Verticalization – deeper integration within consumer internet focused verticals. • Focus on improving scale: The company has a dominant position in India (the largest market) and is consistently working to grow in scale significantly enhancing the strategic moats by focusing on three key aspects: 1) expanding the scope of the products from just mobile to connected devices, going well beyond mobile and looking at connected devices as a strategic focus, 2) looking at the consumer’s journey as an omni channel platform, integrating it across both online journeys as well as offline journeys and therefore creating new possibilities for the customers, and 3) continue to invest in the 2V strategy of Vernacular and Verticalization to reach the next billion shoppers on connected devices. They also have a selective approach while scaling up the consumer platform. • The management guided that they would be focusing on broad segment growth and reduce their overdependence on a particular vertical. • They have realigned their strategy in the developed markets like reorganization of team, focus on lock in's on product & platform for multi year growth, connected TV product with household sync capabilities. These changes is expected to result in some turnaround Q2 FY24 onwards.

#Future #Plan

Focus on improving the conversions: Affle is consistently focusing on scale, growing the number of conversions, getting higher wallet share and focusing on consumer proposition which would help it to improve the CPCU rates and hence the revenue. For this, the company is investing into synergetic acquisitions as a part of Affle 2.0 strategy. • Compliance with data-privacy regulations: The company has been abiding to the stringent data-privacy regulations set by Singapore Government and some of the European standards. It is also among the few companies that has been accredited for its entire tech stack by Infocomm Media Development Authority of Singapore (IMDA) under the SG. It also appoints external auditors impact. such as Grant Thompson, Privasec etc for data privacy audits. The company also received Data Protection Trustmark (DPTM) Certification for a period of three years by IMDA, which notably enhances the customers' trust, builds greater strategic moat and fosters growth. • Integration with Jampp to aid the topline: Jampp has ~50% penetration in the iOS devices. Hence, post the implementation of stringent data privacy rules, it was among the early movers in adopting SKAN (SKAd Network is a privacy centric API operated by Apple which helps measure ad activity on an aggregated level). Using this technology, Jampp drove 41% more efficient conversions in SKAN campaigns v/s Android only, for its client fetch. • The company's system are designed and geared to process only the appographic, behavioural and intent signals of customers without having any access to a user's personal and financial information. Hence, data protection bill would hopefully not have any • They have raised funds from Gamnat Pte. Ltd, which is an entity of the Ministry of Finance, Government of Singapore to invest ~₹750 cr in the company. This will strengthen the next 4 years of strategic growth initiatives.

Affle (India) Ltd 1350-1550
Expected level 1880
Support 1200