Elder Pharma trades with traction on the BSE

Elder Pharmaceuticals Ltd. | Pharmaceuticals & Drugs | Healthcare | BSE: 532322 | NSE: ELDERPHARM

06 Aug 2013 Evaluate

Elder Pharmaceuticals is currently trading at Rs. 308.05, up by 9.70 points or 3.25% from its previous closing of Rs. 298.35 on the BSE.

The scrip opened at Rs. 304.00 and has touched a high and low of Rs. 312.00 and Rs. 299.10 respectively. So far 11071 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 474.00 on 05-Dec-2012 and a 52 week low of Rs. 202.15 on 14-May-2013.

Last one week high and low of the scrip stood at Rs. 322.80 and Rs. 275.15 respectively. The current market cap of the company is Rs. 630.79 crore.

The promoters holding in the company stood at 34.40% while Institutions and Non-Institutions held 24.63% and 40.97% respectively.

Elder Pharma is likely to fetch a valuation of Rs 2,000 crore for its domestic business, which is up for sale. The domestic business with revenue of Rs 500 crore, might get a multiple of four times as the entire India business is dependent on a few nutraceutical products such as Shelcal. Selling its domestic drug business would help the company clear its debt worth Rs 1,300 crore accumulated after multiple acquisitions abroad.

European pharma giant Sanofi and US major Novartis are learnt to be the front runners for the asset. Mails sent to Sanofi and Novartis did not elicit any response. Alok Saxena, joint managing director, Elder Pharma, could not be reached even after repeated attempts. “Contrary to the Abbott - Piramal deal, which saw nine times revenue as the valuation, Elder could fetch a maximum of four times the revenue for the local business, as the basket is not too big and has strong presence only in a few segments such as nutraceuticals,” a banker, who was involved in a recent pharma outbound deal. Piramal had sold its domestic formulation business to Abbott for Rs 17,000 crore in 2010.