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Shasun Pharmaceuticals Ltd.- (Amalgamation) Stock Analysis

Small Cap
Evaluated by 955 users | BSE: 524552 | NSE: SHASUNPHAR |
Pharmaceuticals & Drugs
Shasun Chemicals and Drugs Limited (SCDL) was incorporated in 1976 and is headquartered in Chennai, India.Shasun Chemicals and Drugs manufactures active pharmaceutical ingredients (APIs), their intermediates and enteric coating excipients with a significant presence in some key generics....

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Shasun Pharmaceuticals Ltd.- (Amalgamation) has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'06Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15
Return on Capital Employed 16.28%14.49%1.91%3.97%14.03%4.7%14.28%6.63%9.02%7.59%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3574054324715315677367839351,078
Y-o-Y Gr. Rt.-13.3%6.7%9%12.7%6.9%29.8%6.4%19.4%15.4%
Adjusted EPS (Rs.) 7.477.790.261.19.050.727.673.697.135.41
Y-o-Y Gr. Rt.-4.3%-96.7%323.1%722.7%-92%965.3%-51.9%93.2%-24.1%
Book Value per Share (Rs.) 37.2643.246.5639.6943.135.2546.8350.1755.465.29
Adjusted Net Profit 35.937.61.35.343.73.542.320.940.432.5
Net Op. Cash Flow (Rs. Cr.) 30.853.147.7-3345.234.99.710.36675.6
Debt to Cash Flow from Ops 2.581.942.84-6.364.756.2724.539.048.097.75
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Shasun Pharmaceuticals Ltd.- (Amalgamation) should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 13.1%15.2%13.6%15.4%
Adjusted EPS -3.5%-9.8%-11%-24.1%
Book Value per Share 6.48.711.717.9
Share Price 22.7% 2.7% - -
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'06Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15
Return on Equity (%) 22.5619.170.582.5421.811.8419.487.6113.388.91
Operating Profit Margin (%) 19.3916.475.4511.7713.816.869.078.711.0311.85
Net Profit Margin (%) 10.069.280.31.138.240.625.742.674.323.02
Debt to Equity 0.440.490.61.091.031.280.921.421.71.49
Working Capital Days 148157163181227244207223227238
Cash Conversion Cycle 77849291857959697167
Entity Percentage Holding
Promoters 35.32%
Institutions 20.41%
Non-Institutions 44.27%
Pledged *24.2931.7228.1428.0624.2417.2812.2913.1318.4117.32
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Shasun Pharma and arrived at the following conclusion:

Past 10 year's financial track record indicates that Shasun Pharma is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Shasun Pharma's performance infers:

Shasun Pharma earnings have declined by -9.8%, whereas share price has appreciated 2.7% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Shasun Pharma share prices over the last 10 years. Here is what we found out:

Shasun Pharma share price has appreciated 17.3% annually over the past ten years.

Shasun Chemicals and Drugs Limited (SCDL) was incorporated in 1976 and is headquartered in Chennai, India.

Shasun Chemicals and Drugs manufactures active pharmaceutical ingredients (APIs), their intermediates and enteric coating excipients with a significant presence in some key generics. Shasun has created a strong product portfolio, building on its R & D Expertise, regulatory capabilities and multi scale production capacities.

Shasun has also emerged as a key player in various

Shasun Chemicals and Drugs Limited (SCDL) was incorporated in 1976 and is headquartered in Chennai, India.

Shasun Chemicals and Drugs manufactures active pharmaceutical ingredients (APIs), their intermediates and enteric coating excipients with a significant presence in some key generics. Shasun has created a strong product portfolio, building on its R & D Expertise, regulatory capabilities and multi scale production capacities.

Shasun has also emerged as a key player in various service segments in the pharmaceutical field besides APIs and intermediaries, and is strengthening its offer of contract research, custom synthesis, contract manufacturing and contract formulation services to clients.

Shasun is one of the largest producers of Ibuprofen worldwide. The company offers derivatives of Ibuprofen like Ibuprofen Sodium, Ibuprofen Lysinate and S+Ibuprofen. It is also one of the major producers of Ranitidine and Nizatidine in the world. Its products are exported to countries across North America, Europe, Asia and Latin America.

Shasun in its endeavour to become a true one-stop shop for global pharma companies, is evolving its business model to become a complete service provider, offering services right from the discovery stage to manufacturing formulations.

The company has recently added finished formulations capability as forward integration, and has invested in large facility to cater to the international regulated market. It has tied up with multinational companies in the formulations space wherein it will be developing and supplying products for the US market. 

The recent acquisition of the business and facilities of Rhodia Pharma Solutions by Shasun's wholly owned subsidiary Shasun Pharma Solutions Ltd (SPSL), UK equipped the company to evolve as a technology based service provider than as a contract manufacturing and research provider. Its services include innovative process research and development, rapid response small scale manufacture for clinical trial supply and full scale commercial manufacture of advanced intermediates and API’s, all with seamless technology transfer with and without GMP. The formulation unit at Puducherry has been approved by USFDA.

By integrating its facilities in India and UK, the company is trying to offer the benefits of operations in both the countries to its clients. The company has aligned its facilities so that while research can be conducted in India, development and manufacturing in kilo labs and pilot plant can be conducted either in UK or India and the optimal mix could be decided based on the regulatory, IP and cost. The company is planning to set up a multi-product pilot plant facility at Vizag, Andhra Pradesh, focusing on Contract Manufacturing Services business. In FY06, CRAMS business revenue has reached Rs 3430 million.   

Product range of the company includes:

  • Ibuprofen
  • Ibuprofen Derivatives
  • Ranitidine base  
  • Ranitidine
  • Nizatidine  
  • Methoxital
  • Isradipine  
  • Gabapentine  
  • Olanzapine  
  • Quinapril HCl  
  • Meprobamate

Subsidiary:

Shasun Pharma Solutions Ltd (SPSL) is the subsidiary of the company

Milestones:    1976-1990

  • Incorporated as a private limited company, Shasun Chemicals in Chennai
  • First production facility established at Velachery, Chennai, for manufacture of Analgin (antipyretic).
  • Second production facility was established at Puducherry for manufacture of Ibuprofen (anti-inflammatory) 

1990-2000

  • Third manufacturing unit set up at Cuddalore to manufacture the anti-ulcerative Ranitidine HCI
  • Shasun converted into a public limited company, incorporating its present name.
  • US subsidiary, Shasun Inc, is established
  • The company's shares were listed on Mumbai, Ahmedabad and Chennai stock exchanges.
  • Technology and joint marketing agreement signed with Nagase & Co, Japan for S+Ibuprofen
  • The company signed a technology agreement with Chircotech, UK, for S+Naproxen.
  • The company signed a joint venture agreement with Austin Chemical Company, USA.

2000-Present day

  • The company's exports exceeded Rs.100 cr.
  • Established a biotech laboratory in its R&D centre.
  • Signed a letter of intent with Eli Lilly for supply and manufacture of an anti-TB drug.
  • Multi Purpose Plant at Cuddalore was commissioned.
  • Completed setting up its new Research Centre.
  • Strategic partnership with Glenmark and Alpharma(now part of Actavis) for Development & Supply of Formulation products.
  • Completed its first ever acquisition of Rhodia Pharma Solutions business marking its advent in the Global supply arena 
  • 2009 - Commercial launch of recombinant streptokinase in India (June 09)
  • 2010 - The Company entered into the rapidly growing filed of Nanotechno by entering into collaboration with Nanoparticle Biochem
    Company has changed its name from Shasun Chemicals & Drugs Ltd. to Shasun Pharmaceuticals Ltd.
    Finished dosages sales grows 100% and reaches Rs. 50 crores
  • 2011 Formed 50:50 JV Shasun NBI LLC in USA with Nanoparticle Biochem
  • 2012 Sun Pharma won the patent battle against Novo-Nordisk in the US Supreme Court over its generic drug ‘Prandin&rsquo.

Award & Recognition:

  • Entrepreneur Award -S.Abhaya Kumar, Joint Managing Director, Shasun received an award, for being nominated as one of the Finalist for the Ernst & Young
  • Entrepreneur of the Year 2003, from L.K.Advani, Deputy Prime Minister of India, at New Delhi.  
  • Four Star Safety Award -British Safety Council after conducting an audit awarded 4 Star rating for Puducherry facility for the year 2002. 
  • IDMA Award 2002 -Shasun Cuddalore facility has been recognised for its Quality Excellence by Indian Drug Manufacturer's Association in 2002. 
  • First Award -First Award by Chemexcil for the year 1998 - 1999 for Outstanding Export performance.  IDMA Award 2000
  • Shasun has been recognized for its Quality Excellence by the Indian Drug Manufacturers Association in 2000. 
  • Top Award -Top Award for Outstanding Export performance from Chemexcil for the year 1999 - 2000.  
  • Trishul Award -Shasun has been recognized for its export achievements by the Government of India in the form of the Trishul Award in 1993 and Certificate of Merit in 1996. 
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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