Attached is detailed 15-pages Research Note on Hikal Ltd. alongwith its FY12 Annual Report.
Hikal Ltd., being a Baba Kalyani (Bharat Forge fame) Group company, who, alongwith Hiremath Family, owns 73.52 % equity stake in the company, needs a closer look by any prudent fund manager because of it being on verge of commencement of a significant growth phase starting Q4FY13 when major molecules of the company begin commercial production.
An Exclusive Supplier Relationship with Syngenta (for Thiabendazole), Bayer (for Fenamidone) & BASF (for Initium) as also World Leadership status in Gabapentin Molecule make the company hard to ignore, especially, at a time when its decade old efforts & upfront investments made, are likely to begin yielding pronounced results.
Current Market-Cap of just INR 697 cr. which is even lower than its current Net Fixed Asset base at INR 714.87 cr. with FY14e Revenues of INR 1040 cr. at 27 % + EBITDA margins make the company an interesting Investment Opportunity at current juncture.
Views are Invited from fellow members on this promising Research-driven Company.
Rgds.
Key Investment Arguments In Favour & Against Hikal Ltd.
( Hikal Ltd. - Mcap – Rs. 697 cr. with FY14e Revenues of Rs. 1040 cr. ) Page 2-3
Why it Deserves to be a Part of One's Core Portfolio
Management Overview ( Baba Kalyani Group with Distinguished Management Team )
Business Model Explained ( Co. Sitting on Verge of Significant Growth Phase Commencing FY14 )
Evolution of the Company ( From Asset Building to Signing Exclusive MNC Innovator Relationships to Commercialisation & Delivery )
AI Segment ( Exclusive Supplier to Syngenta, Bayer & BASF )
API Segment ( World's Largest Supplier of Gabapentin )
CRAMS Segment ( Complements AI & API Segments )
Margin Focus ( 10 Years' Avg. EBITDA Margins at 27.64 % )
Minority Shareholders' Wealth Creation Track Record - 12 Years ( Consistent High Dividend Payment with Two Bonus Issues )
Peer Comparison ( Divis Lab, PI Ind, & Shasun )
Conclusion ( A Knowledge-driven Life Sciences Company on Verge of Significant Rerating ) |
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