cadila healthcare ltd - myirisbreport.myiris.com/mr1/cadhealt_20111119.pdfcadila is a flagship...
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Microsec Research19 Nov 2011
TABLE OF CONTENTS:
Organic and Inorganic Strategies to drive growth ………………………
Employee Cost and Elevated Debt………………………………………
Consumer Wellness………………………………………………………
Peer Group……………………………………………………………………
Business Overview………………………………………………………… 05 - 05
Topic Page Number
Investment Highlights………………………………………………………… 03 - 03
Company Overview…………………………………………………………… 04 - 05
08 - 09
09 - 10
10 - 10
11 - 11
Industry Overview…………………………………………………………… 06 - 06
Investment Thesis……………………………………………………………… 07 - 14
Distribution Channel and competitive research team ………………… 07 - 08
Financials……………………………………………………………………… 13 - 13
Disclaimer……………………………………………………………………… 14 - 16
Valuation……………………………………………………………………… 12 - 12
Risks to the Rating…………………………………………………………… 12 - 12
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Microsec Research19 Nov 2011
Cadila Healthcare Ltd (Cadila) is a leading pharmaceutical company with a strong
presence in domestic and global markets. Cadila expands its market presence through
Joint Venture, acquisition and tie ups with different companies all over the world. With
the investment in R&D and manufacturing facilities, the company is likely to become
research oriented company which has huge opportunities; as global pharmaceutical
companies want to give out their research to India due to cost cutting, going off-patent
and US FDA issues. We expect Cadila has good prospects in the long run. However,
domestic pricing policy and stiff competition in consumer wellness segment from
multinationals, impedes our view for the short term and we give “Hold” rating to the
stock.
Investment Highlights
Distribution Channel along with competitive Research Team increase product
launch to boost top line growth.
Organic and Inorganic Strategies to drive growth.
The rising employee cost and elevated debt impact on margins that makes us
cautious in short run but is likely to be positive for long run as it is due to the
investment in R&D, manufacturing facility and acquisition of Bremer for accessing
the key animal healthcare markets across Europe, South America, Asia, Africa and
Nesher Pharma to distribute and manufacture generic controlled substances in the
American market. Past credibility gives us assurance that the management is
capable to manage properly by expanding product portfolios and market presence.
Cadila focuses on the fast growing affluent, health conscious segment through its
73% subsidiary, Zydus Wellness, but this segment currently faces stiff competition
from the multinationals.
Cadila – Financial Performance at a glance
Particulars(In INR Mn) FY2009 FY2010 FY2011 FY2012E FY2013E
Revenue 29,275.00 36,868.00 46,302.00 53,272.96 65,482.02
Growth (%) 26.03% 25.94% 25.59% 15.06% 22.92%
EBITDA 6,058.00 8,086.00 10,262.00 11,032.86 14,013.15
EBITDA Margins (%) 20.69% 21.93% 22.16% 20.71% 21.40%
Net Profit 3,033.00 5,051.00 7,110.00 7,897.04 10,109.35
Net Profit Margins (%) 10.36% 13.70% 15.36% 14.82% 15.44%
Net Profit Growth (%) 17.74% 66.53% 40.76% 11.07% 28.01%
EPS 22.22 37.00 34.73 38.57 49.37
BVPS 84.15 104.90 92.80 125.34 169.31
P/E 8.16 14.86 22.79 18.47 14.43
P/BV 2.16 5.24 8.53 5.68 4.21
EV/EBITDA 5.80 10.37 16.63 13.42 9.98
ROE 26.40% 35.28% 37.42% 30.77% 29.16%
Source: Company Data, Microsec Research
Cadila Healthcare Ltd
Initiating Coverage -Hold Sector- Pharmaceuticals
BSE Code 532321
NSE Code CADILAHC
Bloomberg Ticker CDH IB
Reuters Ticker CADI.BO
Face Value (INR) 5.00
Equity Share Capital (In INR Mn) 1,023.74
Average P/E 27.4x
Beta vs Sensex 0.57
Average Daily Volume 15,585
Dividend Yield 0.88%
PEG Ratio 0.84
STOCK SCAN
Current Market Price (INR) 712.55
Target Price (INR) 778.00
Upside (%) 9%
52 Week High/Low (INR) 983.5/703.1
Market Capitalization (In INR Mn) 145,893.19
Market Data
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Microsec Research19 Nov 2011
Company Overview
Cadila is a flagship company of Zydus Cadila Group. It was incorporated as Cadila Healthcare Private Ltd on 15 May, 1995 and
converted into public company along with the name of Cadila Healthcare Ltd in 1996. Headquarter of the company is situated
in Ahmadabad. Cadila is in the business of active pharmaceutical ingredients, formulations; animal health product to life style
products. The company has 12 own manufacturing units which are located in Ankleshwar, Baddi, Goa, Changodar, Dabhasa,
Sikkim, and Moraiya. It is the leading player in cardiovascular, respiratory, gastrointestinal and women healthcare segment.
Exhibit 1. Cadila – Events
Source: Company Data, Microsec Research
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Microsec Research19 Nov 2011
Business Overview
Cadila, a research oriented pharmaceutical company, operates in bulk drugs, human formulations, veterinary formulations,
herbal, diagnostics, skin care and other OTC products. Export of generic drugs contributes over 40% on the top line while 50% of
its revenue comes from domestic market. The company has remarkable presence in respiratory, cardiovascular, gastrointestinal,
female healthcare and anti-infective segments.
Geography-wise Formulation revenue breaks up Segment wise revenue breaks up
Source: Microsec Research, Company Data Source: Microsec Research, Company Data
During Q2 FY12, Cadila showed 36% yoy growth in US market and launched 2 new products in Brazil. In Europe, the company
posted 5% growth on yoy basis. With the launching of 4 product dossiers, the Japanese market grew by 22%. In India, Cadila
launched 20 new products including line extensions. It has good growth opportunities by encouraging generic players to increase
market presence as the healthcare costs borne by the Government or insurance companies.
Therapy wise Branded Formulation revenue Break up in India
Source: Company Data, Microsec Research
Therapies FY2008 FY2009 FY2010 FY2011
Respiratory 10.00% 11.10% 11.10% 10.70%
Nutraceuticals 0.00% 2.70% 2.70% 2.40%
Dermatology 3.00% 2.30% 2.30% 3.10%
Pain Mgnt 6.00% 7.20% 7.20% 7.30%
Neurologicals 2.00% 2.80% 2.80% 3.00%
Gastrointestinals 16.00% 16.40% 16.40% 17.40%
Female Healthcare 11.00% 10.70% 10.70% 10.20%
Diagnostics 3.00% 2.40% 2.40% 2.00%
Cardiovasculars 21.00% 20.80% 20.80% 20.00%
Biologicals 4.00% 3.20% 3.20% 2.90%
Antiinfectives 10.00% 10.70% 10.70% 10.20%
Others 14.00% 9.50% 9.50% 10.80%
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Microsec Research19 Nov 2011
Industry Overview
The top line of Global Pharmaceutical Industry is growing at the rate of 5-7% due to the change in demand patterns, significant
demographic shifts, global regulatory shifts, healthcare reform, 90% of the population covered by public health insurance and
increasing affordability. Currently, the global Pharmaceutical market is dominated by US followed by European nations and
Japan; these three regions together represent nearly 55% of the global market. In the long run, Global Pharmaceutical market
sales is expected to grow at 5-8% CAGR through 2014 and the market value is expected to expand over $1.1 trillion by 2014.
According to IMS, “health pharmerging market” is the seven fast growing emerging economies including China, Brazil, India,
Russia, Mexico, Turkey and South Korea which is expected to grow by 13-16% over the next 5 years in aggregate due to the
greater Government spending on healthcare while major developed markets are likely to grow at 3-6%.
During the next 5 years, markets are likely to be impacted by numerous actions including the raising of standards required to
achieve reimbursement of innovative therapies and the use of economic incentives for prescribers and pharmacists to drive a
shift to generic alternatives.
The Indian Pharmaceutical Industry has become the 3rd largest in the world in terms of volume and ranks 14th in terms of value
at $20 billion. It is growing at 9% and is expected to surge to $20 billion by the year of 2015. It has opened vast opportunity for
the global player as cost is 50% lower in India than in western nations while R&D costs are about 10-15% and the clinical trial
expenses are around one tenth of western nations. In addition to that, it is expected that about $96 billion worth drugs go off
patent in US in CY2011-2013. Furthermore, growing domestic sector and increasing penetration on the rural market can be the
reasons for growth of the Indian Pharmaceutical Industry.
Indian drug makers export to 220 countries and formulations accounting for 56%, bulk drugs for 42% and herbals-ayurveda for
2%. USA continues to be the best destination country of Indian exports with 24.16% of the exports.
The new drug pricing policy brings 60% of the available domestic formulation drugs under pricing control. The ceiling price
would be determined by market based pricing from earlier cost based pricing. This is going to hamper revenue and earnings of
the industry but the companies whose export business contributes more in the revenue, are likely to be less impacted than the
others.
Global Pharma market Therapeutic segment growth (In $Bn)
Source: Microsec Research, Industry Data Source: Microsec Research, Industry Data
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Microsec Research19 Nov 2011
Investment Rationale
Cadila Healthcare is a well known player in pharmaceutical as well as life style business. The company has reported 20% and
24% CAGR for revenue as well as EBITDA and net profit showed 29% Compounded Annual Growth. In Q2 FY12, Cadila shows
11% top line growth on annual basis due to the volume contradiction in European market, price erosion of API and slip in the
OTC product from 18% in the Q2 FY11 to 7% currently on account of the stiff competition from the MNC competitors. The
detailed analysis is as follows:
Revenue and EBITDA Margin trends EPS and ROE trends
Source: Microsec Research, Company Data Source: Microsec Research, Company Data
Distribution channel along with competitive research team to boost product launches
Zydus Research Centre was established in the year of 2000 at Ahmedabad. A team of over 1050 research scientists engaged in
medical chemistry, bioinformatics, genomics, biotechnology, toxicology, clinical research, and process and drug delivery
research to do products registration at higher space every year across USA, Europe, Japan and emerging markets. Every year, the
company has invested around 6% of its revenue to R&D. Out of the 1050 scientists, 40% engages in the drug discovery. Cadila
did cumulative filings of 136 ANDA with USFDA, 120 for European market and 68 for Brazil. During Q2 FY12, the company
launched 20 new products in the domestic formulation market and in USA, the number was five. The company is planning to file
20 ANDAs in FY12 with average filing of 15 ANDAs every year thereafter. Moreover, Cadila is likely to get 10 approvals from
USFDA within FY12 that contributes in the growth of FY13. With the several new product introductions and well recognized
brands such as Mifegest kit, Pantodac, Atorva, Aten, Amlodac, Primolut, Cadila has managed to get top line growth of 25%-26%
per annum. During Q2 FY12, the formulation manufacturing plant at Baddi has been approved by US FDA. This facility
currently caters domestic and emerging market requirements; Cadila has filed 4 ANDAs from this new facility to capture the
growing demand of US market.
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Microsec Research19 Nov 2011
ANDA filed and approval trends Product Launches in the domestic country
Source: Microsec Research, Company Data Source: Microsec Research, Company Data
The company has supported its product offering through increased field force. Besides domestic market, Cadila presents in US,
France, Spain, Brazil, Mexico, Africa, Sri Lanka, Myanmar and Middle East Asia. Besides the urban areas, Cadila is expanding its
penetration especially in semi-urban and rural areas with the help of 4,500 medical representatives. In addition to that, Cadila is
marketed its products through the specialized field force of 3,000 and reaches to 1, 00,000 chemists. Furthermore, the company is
likely to increase its doctors’ coverage from currently 1,25,000 to 2,00,000 in the next six to nine months.
Organic & inorganic strategies to drive growth
Cadila is focusing on various Joint Ventures, Acquisitions and Collaborations to leverage strong product pipeline, research-
development lab and market presence by entering and expanding into regulated and fragmented markets of US, Europe, Brazil,
Japan and other emerging markets. The company has entered into collaborative research agreements with Prolong
Pharmaceuticals, Karo Bio, and Eli Lilly. Cadila-Prolong Pharma pact increases the productivity in the drug development of the
next generation therapeutic proteins by utilizing PEGylation technology to make PEG-EPO. By this deal, Cadila provides safer
alternatives to the patients with affordable prices. The collaboration with Eli Lilly provides expertise in the development for
cardiovascular drugs.
Through the Joint Venture with Bayer Healthcare, Bayer Zydus Pharma was formed for sales and marketing of pharmaceutical
products in India and strengthens its network with global pharmaceutical players. This Joint Venture is focusing on women’s
healthcare, cardiovascular, diabetic, oncology treatment and diagnostic services. Through the Joint Venture with Bayer Zydus
Pharma, Cadila enhances product portfolios especially in the treatment of women’s healthcare, cardiovascular, diabetic, oncology
treatment and diagnostic services and distribution capabilities to enhance the launch of new products and sales of existing
brands. Furthermore, Cadila has in-licensing agreements with Bayer Schering Pharma, Baxter, Nycomed, Boehringer Ingelheim
and Genzyme Inc.
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Microsec Research19 Nov 2011
Organic & Inorganic Growth Initiatives
Source: Company Data, Microsec Research
Stiff rise in employee cost and elevated debt raise concerns in the short run
During Q2 FY12, the debt increased by 82% to INR 19,852 Mn from INR 10,902 Mn of Q2 FY11. Out of the total debt, 41% are
dollar denominated; in rupee depreciated scenario, that is a great concern for the company. The net debt-to-equity ratio jumped
from 0.41 in Q2 FY10 to 0.55 in Q2 FY11 and the management expects that net debt-to-equity ratio will be maintained at 0.56 at
the end of the financial year. Furthermore, employee cost rose sequentially by 162 basis points due to the inorganic growth and
new facility in wellness at Sikkim. All of these affect the margins of Cadila. The debt has been raised due to capital expenditure
in the R&D, formulation and API facilities to have wide range of product portfolios for catering the growing needs. In addition
to that, acquisition of Bremer Pharma, Nesher Pharma is the reason for the swelling of debt.
Year Name of the Company Events Location Growth Driver
2011 Bremer Pharma GmbH Acquisition Germany Access the key markets such as
Europe, South America, Asia and
Africa in Animal Healthcare Business
2011 Nesher Pharmaceuticals Inc Acquisition US Manufacture & distribute generic
controlled substances in US market
2011 Bayer Zydus Pharma Joint Venture India Sales & marketing of pharmaceutical
products in India
2010 Abbott Agreement India Commercialising branded generic in
the emerging markets
2009 Simayla Acquisition S.Africa Entry into the South African market
2009 Eli Lilly Collaboration India Research collaboration to discover &
develop new cardiovascular medicines
2008 Etna Biotech Acquisition Itly Help to develop Vaccines
2008 Laboratories Combix Acquisition Spain Entry into the Spanish market
2008 Karo Bio Collaboration Sweden Discover & develop drug for the
treatment of inflammatory disease
2008 Prolong Pharmaceuticals Inc Collaboration US Development of therapeutic protein in
the treatment of severe anemia
2007 Nikkho Acquisition Brazil Access branded generic market in
Brazil
2007 Sarabhai Zydus Animal Health
Ltd
Acquisition India Strengthen Animal Healthcare
business
2007 Nippon Universal
Pharmaceutical Ltd
Acquisition Japan Access manufacturing facility &
distribution network in Japan
2007 Liva Healthcare Acquisition India Widen Product portfolio in
dermatology & respiratory segment
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Microsec Research19 Nov 2011
Though the rising employee cost and debt are negative for the short run but it can be positive for the long run if the company
manages it properly by expanding market presence and product basket.
Employee Cost Trend on Quarterly Basis Loan Trend on Quarterly Basis
Source: Microsec Research, Company Data Source: Microsec Research, Company Data
Consumer Wellness
Cadila Healthcare through its 73% subsidiary, Zydus Wellness caters increasingly affluent, health conscious people. This segment
contributes 8% of the revenue. It has the products of zero calorie sugar substitute “Sugar Free Natura”, low calorie healthy drink
“Sugar Free D’lite”, diet ice tea “Sugar Free Tea Lito”, cholesterol free table spread “Nutralite” and skincare product “Everyuth”.
With the time, people become more brand conscious and due to the aspiration of leading better life, growing middle and upper
class in the demography, the demand of this segment has been much faster. During Q2 FY12, it grew by 10% on yoy basis. In
spite of high demand, Cadila face tough competition from the multinational companies due to the distribution and price hike
issues that may hamper volume growth of the company. But the new Wellness facility at Sikkim is likely to have positive impact
on EBITDA margin.
Demographic Segment Revenue Trend of the Consumer Wellness Segment
Source: Microsec Research, Company Data Source: Microsec Research, Company Data
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Microsec Research19 Nov 2011
Peer Group
Source: Microsec Research, Company Data, ACE Equity, TTM
Name of the Company Revenue Growth(%) EBITDA EBITDAM Net Profit NP Margin NP Growth EPS BVPS P/E P/BV ROE EV/EBITDA
Cadila Healthcare 47,421.00 21.06% 10,312.30 21.75% 7,492.30 15.80% 28.20% 36.21 106.06 25.39 8.67 39.43% 19.03
Aurobindo Pharma 45,361.00 24.42% 9,937.30 21.91% 3,891.50 8.58% ‐13.20% 55.90 83.98 3.09 2.05 18.21% 7.29
Biocon 25,564.10 12.18% 5,820.70 22.77% 3,608.30 14.11% 15.49% 18.28 101.64 19.40 3.49 19.04% 12.00
Cipla 64,296.40 12.10% 13,563.90 21.10% 9,630.40 14.98% ‐12.27% 12.00 83.02 27.53 3.98 15.31% 19.90
Dishman 10,615.47 16.47% 1,968.64 18.55% 678.92 6.40% ‐35.63% 5.59 108.95 16.07 0.82 8.16% 7.88
Divi's Lab 14,181.10 40.24% 5,362.00 37.81% 4,481.30 31.60% 22.53% 33.82 135.51 23.21 5.79 27.03% 19.43
Dr Reddy 77,644.70 12.44% 16,081.20 20.71% 11,571.90 14.90% 10496.98% 48.40 237.90 31.68 6.45 29.64% 17.28
Glaxosmithkline 22,736.50 12.43% 7,905.20 34.77% 4,215.10 18.54% ‐21.19% 49.80 230.40 47.27 10.22 22.55% 22.69
Glenmark 31,257.79 18.03% 6,596.82 21.10% 5,123.97 16.39% 14.34% 15.74 75.36 20.36 4.25 23.33% 15.82
Ipca Lab 19,930.20 23.65% 4,053.70 20.34% 2,782.00 13.96% 40.32% 17.49 83.65 19.55 4.09 29.03% 11.89
Lupin 60,654.80 18.94% 12,010.40 19.80% 8,763.30 14.45% 18.77% 19.56 73.52 22.93 6.10 29.97% 17.29
JB Chemicals 8,260.57 16.37% 1,652.65 20.01% 1,165.50 14.11% 7.36% 13.78 81.72 9.66 1.63 18.50% 7.07
Orchid Chemicals 17,209.35 35.17% 4,166.02 24.21% 1,534.11 8.91% ‐59.91% 10.70 151.79 25.31 1.78 15.29% 8.50
Ranbaxy 83,173.00 ‐8.05% 10,409.78 12.52% 7,580.75 9.11% ‐54.24% 18.57 133.01 29.10 4.06 15.24% 22.90
Strides Arcolab 20,116.60 26.44% 4,223.29 20.99% 1,464.58 7.28% 2.40% 20.58 221.08 16.32 1.52 13.86% 8.57
Sterling Biotech 17,338.98 14.08% 7,755.19 44.73% 1,362.15 7.86% ‐43.37% 4.64 92.24 18.36 0.92 6.00% 6.59
Sun Pharma 60,701.40 30.51% 18,986.30 31.28% 17,975.50 29.61% 2.63% 36.80 91.57 13.50 5.43 20.77% 26.17
Torrent Pharma 23,329.70 18.07% 4,502.10 19.30% 2,984.64 12.79% 2.81% 35.27 120.84 18.01 5.26 32.21% 12.15
Wockhardt 38,828.10 7.69% 9,922.10 25.55% 4,007.80 10.32% 143.71% 36.63 86.18 10.01 4.25 49.64% 7.44
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Microsec Research19 Nov 2011
Valuation
We adopted Discounted Cash Flow (DCF) technique to value the stock of Cadila Healthcare Ltd. With the calculation of 8.84%
Risk Free Rate, 2.55% Market Risk Premium and 0.57x of Beta, the company’s cost of equity stood at 10.29% in Capital Asset
Pricing Model (CAPM). With the post tax debt cost of 6.24%, debt to equity ratio of ~0.05x for FY2012E and cost of equity of
10.29%, we arrived at WACC of 10.10%. In addition to that, we assumed terminal growth rate of 2.00% for the stock post
FY2016. With all of these, we arrived at a target price of `778 which is 9% upside of its current stock price of `712.55. The
sensitivity of our target Price towards various levels of WACC and terminal growth rate is as follows:
Cadila Healthcare: P/E Bands Cadila Healthcare: P/BV Bands
Source: Microsec Research, Company Data Source: Microsec Research, Company Data
Risks to the Rating
1. Regulation risks such as policy changes, USFDA warning letters, and products litigation may change our rating.
2. Price erosion, higher marketing and R&D expenditure is likely to affect margins of the company.
3. Cadila faces stiff competition from Multinationals in Consumer Wellness segment. Furthermore, price hike, cutting margins of
dealers and paying fewer bonuses may hamper the volume growth.
Cadila –Sensitivity Analysis
1% 1.50% 2% 2.50% 3%
8.10% 920.84 982.14 1,053.48 1,137.57 1,238.15
9.10% 799.17 844.56 896.34 955.97 1,025.37
10.10% 704.39 739.13 778.16 822.33 872.71
11.10% 628.52 655.81 686.10 719.91 757.89
12.10% 566.44 588.33 612.39 638.96 668.44
Terminal Growth
WACC
Source: Company Data, Microsec Research
- 13 –
Microsec Research19 Nov 2011
Financials (All numbers in INR Mn unless specified)
Income Statement (In INR Mn) FY2009 FY2010 FY2011 FY2012E FY2013E
Revenue 29,275.00 36,868.00 46,302.00 53,272.96 65,482.02
Gross Profit 18,145.00 23,424.00 29,046.00 32,869.42 40,729.82
EBITDA 6,058.00 8,086.00 10,262.00 11,032.86 14,013.15
Dep 1,118.00 1,339.00 1,269.00 1,348.97 2,206.05
EBIT 4,940.00 6,747.00 8,993.00 9,683.89 11,807.10
Interest 1,205.00 821.00 699.00 797.66 719.53
Other Income 204.00 159.00 131.00 372.91 458.37
PBT 3,698.00 6,039.00 8,425.00 9,259.13 11,545.95
Tax 666.00 741.00 1,064.00 1,111.10 1,154.59
Net Profit 3,033.00 5,051.00 7,110.00 7,897.04 10,109.35
Adj EPS 22.22 37.00 34.73 38.57 49.37
Balance Sheet (In INR Mn) FY2009 FY2010 FY2011 FY2012E FY2013E
Share Capital 682.00 682.00 1,024.00 1,023.74 1,023.74
Reserves & Surplus 11,670.00 15,603.00 20,691.00 28,588.04 38,697.39
Shareholders' Funds 12,352.00 16,285.00 21,715.00 29,611.78 39,721.13
Secured Loan 10,684.00 9,782.00 9,341.00 8,666.00 8,666.00
Unsecured Loan 1,989.00 1,123.00 1,632.00 1,632.00 1,594.00
Loan Funds 12,673.00 10,905.00 10,973.00 10,298.00 10,260.00
SOURCES OF FUNDS 26,569.00 28,723.00 34,484.00 41,956.78 52,310.13
Gross Block 22,870.00 25,578.00 28,320.00 30,210.00 32,820.00
Dep,Amor & Impairment 7,572.00 8,734.00 9,994.00 11,342.97 13,549.02
Net Block 15,298.00 16,844.00 18,326.00 18,867.03 19,270.98
Capital Work in Progress 1,555.00 2,111.00 3,441.00 3,441.00 3,441.00
Inventories 6,012.00 7,504.00 8,119.00 9,948.13 11,362.66
Sundry Debtors 4,549.00 4,668.00 7,652.00 8,804.04 10,821.74
Cash & Bank Balances 2,517.00 2,507.00 2,952.00 9,046.85 17,502.45
Loans & Advances 2,533.00 3,070.00 4,106.00 4,596.07 5,644.01
Current Assets, Loans & Advances 15,611.00 17,749.00 22,829.00 32,395.09 45,330.86
Current Liability & Provisions 6,916.00 8,661.00 11,188.00 12,746.34 15,732.71
Net Current assets 8,695.00 9,088.00 11,641.00 19,648.75 29,598.15
APPLICATION OF FUNDS 26,569.00 28,723.00 34,484.00 41,956.78 52,310.13
Cash Flow Statement (In INR Mn) FY2009 FY2010 FY2011 FY2012E FY2013E
Net Profir Before Tax 3,698.00 6,039.00 8,425.00 9,259.13 11,545.95
Dep 1,118.00 1,339.00 1,269.00 1,348.97 2,206.05
Interest 858.00 716.00 587.00 797.66 719.53
Operating Profit before WC Changes 5,701.00 8,320.00 10,436.00 11,405.77 14,471.53
Operating Cash Flow 2,186.00 6,954.00 6,696.00 8,381.78 11,823.13
Investing Cash Flow (4,095.00) (3,716.00) (4,530.00) (814.00) (2,610.00)
Financing Cash Flow 3,496.00 (3,248.00) (1,721.00) (1,472.92) (757.53)
Net Change in Cash 1,587.00 (10.00) 445.00 6,094.85 8,455.60
Opening Balance 926.00 2,517.00 2,507.00 2,952.00 9,046.85
Closing Balance 2,517.00 2,507.00 2,952.00 9,046.85 17,502.45
- 14 –
Microsec Research19 Nov 2011
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Recommendation
Strong Buy >20%
Buy between 10% and 20%
Hold between 0% and 10%
Underperform between 0% and -10%
Sell < -10%
Expected absolute returns (%) over 12 months