Bilcare, in which master stock-picker Rakesh Jhunjhunwala has a share holding of 20,02,925 shares (worth about Rs. 139.80 crores), reported excellent Q2 FY 2011 results.
Bilcare‘s consolidated Q1 FY 2011 sales jumped 77% from Rs. 263.28 crores to Rs. 465.99 crores. Bilcare‘s Net Profit jumped from Rs. 27.85 crores to Rs. 46.53 crores, an increase of 67%. Bilcare‘s consolidated & diluted EPS increased from Rs. 14.15 in Q2 FY 2010 to Rs. 19.54 in Q2 FY 2011, an increase of 38%.
Bilcare‘s half-year results were impressive as well. Bilcare‘s H1 2011 consolidated sales were Rs. 774.53 crores as compared to the H1 2010 sales of Rs. 501.75 crores. Bilcare‘s Net Profit in H1 2011 was Rs. 77.20 crores as compared to Rs. 50.69 crores in H1 2010. Bilcare‘s H1 2010 diluted EPS was Rs. 32.42 as compared to Rs. 25.75 in the same period last year, showing an increase of 25.90%.
| (Rs cr) | Sep 2010 | Sep 2009 | YOY |
|---|---|---|---|
| Operating Income | 480.49 | 265.06 | 81.28 |
| Total Expenses | 380.06 | 202.67 | 87.53 |
| Operating Profit | 100.43 | 62.39 | 60.97 |
| Other Income | 0.00 | 0.00 | 0.00 |
| PBDIT | 100.43 | 62.39 | 60.97 |
| PBT | 60.17 | 38.70 | 55.48 |
| Adjusted Net Profit | 46.53 | 27.85 | 67.07 |
Bilcare‘s steep ascent of top-line and botton-line has come due to its acquisition of the global films business from the INEOS Group through Bilcare AG. INEOS Films division is a leading global producer of high quality polymer films built on expertise and innovation. As part of the Bilcare group it will continue to play a major role in the world of pharmaceutical blister packaging, films for printing and decoration, shrink film for sleeves, capsules and plastic credit cards. Bilcare AG will now fully integrate the business which had a turnover of around €240 million in 2009 employing around 1300 people across manufacturing sites in Germany, Italy, India and USA.
Bilcare has been on a steady growth path. Bilcare‘s 3 Yr CAGR Sales have grown at 36.96% while its 3 Yr CAGR Profit has grown at 24.89%. Bilcare‘s Return on Equity is about 17.09%.
Bilcare has a stable business model. Bilcare is engaged in providing packaging solutions for pharmacetical companies. Bilcare commands 62% market share of blister packaging in the Indian market.
Bilcare is also engaged in providing clinical supplies to Multi-national companies engaged in new drug development activities. Bilcare provides clinical trial materials support, service and complete project management; for clinical studies in developed markets like UK and US.
In July 2010 Bilcare announced successful execution of its non-ClonablelD technology for the security, pharma and agrochemical sectors. Bilcare did a symbolic hand over of technology embedded products to leading companies. Bilcare holds a patent for this ‘Non Clonable ID’ finger print technology which is supposed to help prevent counterfeiting of goods. Bilcare claims that this technology can also be used for preventing counterfeiting of currency notes.
Bilcare has manufacturing facilities in India and Singapore and support and research centers in UK, US and Italy.
Bilcare is also quoting at reasonable valuations. At the CMP of Rs. 685, Bilcare is quoting at a PE multiple of 13.95 on the basis of Bilcare‘s diluted consolidated EPS of Rs. 49.12. For H1 2011, Bilcare reported a consolidated diluted EPS of Rs. 32.42. If this is extrapolated to the whole year on the basis that the H2 EPS will grow at the same rate as it did in H2 of last year, then the full year’s EPS will be in the range of Rs. 61.83. With this EPS, the CMP of Rs. 685 is discounted 11 times which is not at all unreasonable given the growth prospects of Bilcare and the incremental profits that will accrue from the INEOS Films division. (See Also Bilcare: Rakesh Jhunjhunwala’s Stock Pick)
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