*Solara Active Pharma – Q4FY21 Concall Update – Nirmal Bang Sec.*
*Outlook – Positive*
The company is looking to scale up newly launched products in Q2 and Q3 as well as Vizag facility is likely to ramp up further. Integration with Aurore would further boost the earnings as the acquisition is EPS accretive from year 1.
The stock is trading at 20.5x FY22E consensus earnings
• Adjusted for Ranitidine, revenues growth for FY21 is 30% vs reported 22%
• In FY21, the company has filed 8 US DMFs, which is double of last year and 3 EU DMFs
• *_CRAMS_* - there was a one-off delay in offtake by couple of customers which is likely to normalise going forward. *Solara continues to have good revenue visibility*
• *_Vizag Facility_* - the commercialisation of the Vizag facility is going on in a calibrated manner. The company has doubled its utilization rate from Q3 to Q4. The validation and commercialisation of multi-purpose facility would happen by Q1FY22
o Vizag facility had utilisation of 1/3rd in FY20 which was improved to 2/3rd in FY21. It is further likely to improve to full ramp up in next 3 months
• Vizag facility has capacity to produce covid related drug, Favipiravir. Between Aurore and Vizag, Solara would have largest capacity for Favipiravir API.
• *A couple of new products that were launched in FY21 are expected to scale up in Q2, Q3 of FY22. The company has confirmed orders for the entire year already for these product*
• The company has more exciting products in its pipeline which are likely to move into validation phase in FY22
• Capex for FY21 was Rs 174 cr with ATR of 1.8x including Vizag which is likely to scale up in FY22. Excluding this the ATR was 2.1x
• Net debt – Rs 408 cr
• *FY22 – likely to continue with same momentum of growth as FY21 with 23-25% EBITDA margins*
• Growth in semi-regulated market was higher which led to reduction in gross margins however it is likely to normalise in coming quarters
• Aims to file 10-12 products every year
• Added 4 new global pharma customers in FY21
• Capex FY22 – Rs 200-250 cr
• Looking for inorganic opportunities for CRAMS business – mainly lab/assets
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*Outlook – Positive*
The company is looking to scale up newly launched products in Q2 and Q3 as well as Vizag facility is likely to ramp up further. Integration with Aurore would further boost the earnings as the acquisition is EPS accretive from year 1.
The stock is trading at 20.5x FY22E consensus earnings
• Adjusted for Ranitidine, revenues growth for FY21 is 30% vs reported 22%
• In FY21, the company has filed 8 US DMFs, which is double of last year and 3 EU DMFs
• *_CRAMS_* - there was a one-off delay in offtake by couple of customers which is likely to normalise going forward. *Solara continues to have good revenue visibility*
• *_Vizag Facility_* - the commercialisation of the Vizag facility is going on in a calibrated manner. The company has doubled its utilization rate from Q3 to Q4. The validation and commercialisation of multi-purpose facility would happen by Q1FY22
o Vizag facility had utilisation of 1/3rd in FY20 which was improved to 2/3rd in FY21. It is further likely to improve to full ramp up in next 3 months
• Vizag facility has capacity to produce covid related drug, Favipiravir. Between Aurore and Vizag, Solara would have largest capacity for Favipiravir API.
• *A couple of new products that were launched in FY21 are expected to scale up in Q2, Q3 of FY22. The company has confirmed orders for the entire year already for these product*
• The company has more exciting products in its pipeline which are likely to move into validation phase in FY22
• Capex for FY21 was Rs 174 cr with ATR of 1.8x including Vizag which is likely to scale up in FY22. Excluding this the ATR was 2.1x
• Net debt – Rs 408 cr
• *FY22 – likely to continue with same momentum of growth as FY21 with 23-25% EBITDA margins*
• Growth in semi-regulated market was higher which led to reduction in gross margins however it is likely to normalise in coming quarters
• Aims to file 10-12 products every year
• Added 4 new global pharma customers in FY21
• Capex FY22 – Rs 200-250 cr
• Looking for inorganic opportunities for CRAMS business – mainly lab/assets
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*ICRA Ltd.* | *CMP* Rs. 3383 | *M Cap* Rs. 3265 Cr | *52 W H/L* 3985/2109
(Nirmal Bang Retail Research)
*Result has declined*
Revenue from Operations came at Rs. 82.1 Cr (6.1% QoQ, -5.7% YoY) vs QoQ Rs. 77.3 Cr, YoY Rs. 87.1 Cr. Decline was mainly led by lower rating revenue at Rs. 50 Cr vs YoY Rs. 54 Cr.
EBIDTA came at Rs. 23.8 Cr (-1.6% QoQ, -26.9% YoY) vs QoQ Rs. 24.2 Cr, YoY Rs. 32.6 Cr
EBITDA Margin came at 29.1% vs QoQ 31.4%, YoY 37.5%
Adj. PAT came at Rs. 22.2 Cr vs QoQ Rs. 24.2 Cr, YoY Rs. 34.6 Cr
Quarter EPS is Rs. 23
Share is trading at P/E of 40x TTM EPS.
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*Result has declined*
Revenue from Operations came at Rs. 82.1 Cr (6.1% QoQ, -5.7% YoY) vs QoQ Rs. 77.3 Cr, YoY Rs. 87.1 Cr. Decline was mainly led by lower rating revenue at Rs. 50 Cr vs YoY Rs. 54 Cr.
EBIDTA came at Rs. 23.8 Cr (-1.6% QoQ, -26.9% YoY) vs QoQ Rs. 24.2 Cr, YoY Rs. 32.6 Cr
EBITDA Margin came at 29.1% vs QoQ 31.4%, YoY 37.5%
Adj. PAT came at Rs. 22.2 Cr vs QoQ Rs. 24.2 Cr, YoY Rs. 34.6 Cr
Quarter EPS is Rs. 23
Share is trading at P/E of 40x TTM EPS.
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*Craftsman Automation Q4FY21 Concall Update*
*Outlook: Neutral in near term; Positive in long term*
• Co is engaged in three business segments - Automotive Powertrain (52% of FY21 revenue), Automotive Aluminium Products segment (21%) and Industrial and Engineering segment (27%).
• Debt reduced to 704 cr in FY21 (reduction of 336 cr via (i) IPO proceeds (136 cr) and (ii) internal accruals (200 cr)). Co intends to reduce it by 200 cr in FY22. Interest cost should reduce in FY22 by 25 cr.
• Exports were at 10% of revenue in FY21.
• Capex run rate will continue to be around 100 cr as has been the case in last two years.
• Co has created good capacities and so there will be operating leverage once demand picks up.
• MHCV Industry mix is shifting towards higher tonnage, thus power train segment is doing better than the overall volume growth in MHCV industry.
• Machining sales were 121 cr n Q3 & 140 cr in Q4 (374 cr in FY21 i.e. 46% of powertrain sales of 811 cr)
• Aluminum content per vehicle will continue to increase which will drive the auto aluminum segment.
• Storage business had sales of 104 cr in FY21 against engineering segment sales of 400 cr, so a 25% mix.
• RM does not impact the power train segment as the RM here is a pass through (RM is provided by OEMs).
• RM inflation in steel & aluminum hurt gross margins during the qtr in other segments of auto aluminum products and engineering; co has increased prices which should support margins in next qtr.
Stock is trading at 16x Q4FY22 annualised EPS. https://t.me/marketswizard
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*Outlook: Neutral in near term; Positive in long term*
• Co is engaged in three business segments - Automotive Powertrain (52% of FY21 revenue), Automotive Aluminium Products segment (21%) and Industrial and Engineering segment (27%).
• Debt reduced to 704 cr in FY21 (reduction of 336 cr via (i) IPO proceeds (136 cr) and (ii) internal accruals (200 cr)). Co intends to reduce it by 200 cr in FY22. Interest cost should reduce in FY22 by 25 cr.
• Exports were at 10% of revenue in FY21.
• Capex run rate will continue to be around 100 cr as has been the case in last two years.
• Co has created good capacities and so there will be operating leverage once demand picks up.
• MHCV Industry mix is shifting towards higher tonnage, thus power train segment is doing better than the overall volume growth in MHCV industry.
• Machining sales were 121 cr n Q3 & 140 cr in Q4 (374 cr in FY21 i.e. 46% of powertrain sales of 811 cr)
• Aluminum content per vehicle will continue to increase which will drive the auto aluminum segment.
• Storage business had sales of 104 cr in FY21 against engineering segment sales of 400 cr, so a 25% mix.
• RM does not impact the power train segment as the RM here is a pass through (RM is provided by OEMs).
• RM inflation in steel & aluminum hurt gross margins during the qtr in other segments of auto aluminum products and engineering; co has increased prices which should support margins in next qtr.
Stock is trading at 16x Q4FY22 annualised EPS. https://t.me/marketswizard
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All the posts appearing in the channel are only for educational and informational purposes.
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Short Term Bumper Call
Buy Advani Hotels at CMP of 53.3 - 54 and on dips till 51
Sl 49
Targets:- 57 - 58 - 59 - 60 - 61 - 62 - 63+
Above 63 we can see 67 - 72 - 80 +
Disclaimer:- I am not SEBI Registered. Please consult your financial advisor before investing
Bse - 523269
Nse - 14745
Buy Advani Hotels at CMP of 53.3 - 54 and on dips till 51
Sl 49
Targets:- 57 - 58 - 59 - 60 - 61 - 62 - 63+
Above 63 we can see 67 - 72 - 80 +
Disclaimer:- I am not SEBI Registered. Please consult your financial advisor before investing
Bse - 523269
Nse - 14745
Mid Term Bumper Call
Buy BASML at CMP of 63.8 - 64.8 and dips till 59
Sl 56.5
Tatgets:- 67 - 68 - 69 - 70 - 71 - 72 - 73
Above 73 we can see 77 - 81 - 85 +
Disclaimer:- I am not SEBI Registered. Please consult your financial advisor before investing
NSE - 12034
BSE - 532674
Buy BASML at CMP of 63.8 - 64.8 and dips till 59
Sl 56.5
Tatgets:- 67 - 68 - 69 - 70 - 71 - 72 - 73
Above 73 we can see 77 - 81 - 85 +
Disclaimer:- I am not SEBI Registered. Please consult your financial advisor before investing
NSE - 12034
BSE - 532674
Re initiating Delivery / Positional Blaster Call
Buy KLRFM (BSE - 507598) at CMP of 53 - 54 and dips till 45
Sl 41
Targets:- 57 - 58.5 - 60+
Above 60 we can see 63 - 66 - 70 - 75+
Disclaimer:- I am not SEBI Registered. Please consult your financial advisor before investing.
Buy KLRFM (BSE - 507598) at CMP of 53 - 54 and dips till 45
Sl 41
Targets:- 57 - 58.5 - 60+
Above 60 we can see 63 - 66 - 70 - 75+
Disclaimer:- I am not SEBI Registered. Please consult your financial advisor before investing.