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Elder Pharma is one of the fastest growing healthcare companies in India and ranks 31st in the Indian Pharmaceuticals Industry as per the latest statistics by ORG. The company's gross sales of Rs3bn in FY05 were impacted to the tune of Rs300mn due to VAT implications. However, the company expects its current quarter results to be back on track. The company's exports, that primarily comprises of 'Tiger Balm' currently contributes 3% to the total turnover. This share is expected to come down gradually in future. The equity capital of the company will go up to Rs190mn in FY06 with Citicorp and Angellini taking up stakes in it. The company is in advance talks with Italian Company Angellini for manufacture of 2-3 molecules of API and has plans of shifting its production activities to Uttaranchal for excise benefits. The company is in the process of discontinuing the low margin products and with the new product launches it expects to show an improvement in margins in FY06. The company has witnessed a CAGR of 15% in past four years and expects to witness a CAGR of 23% in the next two years. The company's stock has been able to deliver 20% return in last one month and at CMP of Rs226 is trading at 16.6x FY05 EPS of Rs13.6.
Women health-care and wound-care categories in pharma growing at faster rate: The company has a strong focus on providing branded formulations for medical needs that are specific to women. These include pregnancy, lactation, menstruation, menopause, osteoporosis, hormonal imbalances, and urinary tract infections. Some of its fastest growing women health care products include Shelcal, B Long and Conjugase. Shelcal 500 is a leader in the calcium supplement and also comprise of vitamin B, which is essential for women healthcare. Doctors prescribe Shelcal even for Osteoporosis. Shelcal currently has a market share of 29% and its sales have grown by 15% yoy in FY05.
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