Any thoughts on the results?
The story is going Zomato’s way, they are able to show the growth and EBITDA growth and the bull market is rewarding them for it. I am starting to worry about the valuation, it is at a PE of 384.

I did some basic maths and here is the summary:

Assumptions

• Food delivery grows at 20%, Blink it at 60%, Going out at 100% and B2B at 100%
• All Adjusted EBITDA are assumptions

Now even if PBT (Profit at EBIDTA) grows the above assumptions and 2 year forward PE is around 80. I am trying to get my head around if this is correct and if yes is the valuation is justified.

Dic: Invested and Biased.

Mankind Pharma –

Q1 concall and results highlights –

Revenues – 2893 vs 2579 cr, up 12 pc
Gross profit – 2081 vs 1759 cr, up 18 pc
Gross margins @ 72 vs 68.3 pc, up 370 Bps
EBITDA – 686 vs 655 cr, up 4 pc ( margins @ 23.5 vs 25.5 pc ). Adjusted for one time M&A related cost, EBITDA would have been 728 cr, margins would have been 25 pc
PAT – 543 vs 494 cr, up 9 pc

Cash on books @ 3750 cr

Domestic sales grew by 9 pc ( growth in domestic business impacted by delayed onset of anti – infective season )

Export sales grew by 62 pc !!!

Domestic : Export sales ratio @ 91 : 9

Chronic : Acute sales ratio @ 39 : 61

Company’s domestic Mkt share share @ 6.1 pc ( second largest after Sun Pharma )

In Q1, Company Acquired Bharat Serums and Vaccines for 13,630 cr. This translates to 22-23 times FY 25 EBITDA that BSV is expected to clock. To be funded by cash on books, debt and Equity ( if required ). Transaction expected to close in 3-4 months

Some brands where BSV enjoys 100 pc Mkt share in India are –

Rhoclone ( Injection – prevents formation of antibodies after a person with Rh-Negetive blood is given a transfusion with Rh-positive blood ) – FY 24 sales @ 180 cr

Thymogam ( immunosuppressant injection )- FY 24 sales @ 32 cr

ASVS ( anti Venom Injection ) – FY 24 sales @ 41 cr

Other dominant brands where BSV is no 1 / 2 in domestic mkt are –

Hucog ( infertility treatment – injectable )- FY 24 sales @ 63 cr
Humog ( supports ovulation – injectable ) – FY 24 sales @ 55 cr
Luprodex ( used in treatment of prostate cancer – injectable ) – FY 24 sales @ 37 cr
Foligraf ( infertility treatment – injectable ) – FY 24 sales @ 35 cr

BSV ltd reported sales of 1723 cr with 28 pc EBITDA margins for FY 24

Company in-licensed Symbicort ( inhaler – for Asthma ) from Astra Zeneca and launched in Q1. Seeing good traction

Also in-licensed Inclisiran ( lipid lowering – injectable ) from Novartis in Q1

Company’s OTC business reported flattish sales @ 206 vs 208 cr. Their popular OTC brands include – GasOFast, PregaNews, ManForce, AcneStar, Unwanted 72, HealthOK

Company’s EBITDA margins in their OTC / Consumer Healthcare business are @ 20 pc

After the acquisition of BSV ltd, company shall emerge as the No 1 player in the Gynae therapeutic segment

Capex for Q1 @ 125 cr

For FY 25, company is guiding for EBITDA margins for 25-26 pc

Company’s EBITDA margins in Q1 did not rise despite the sharp rise in gross margins as the company launched a number of new products in Q1 and there were higher marketing spends in Q1 to support them. These spends should moderate going forward

Company believes that BSV’s business is under – levered and Mankind’s distribution can help improve growth and margins of BSV’s business

The difference in gross margins of Chronic vs Acute business are > 10 pc ( similar figures were given by Alkem Labs in their Q4 or Q3 concall LY … quoting from memory )

Company’s In-Licensed brands give them a foot in door when it comes to high end Hospitals / Clinics / Doctors. These deals do enhance the company’s reputation in a big way + these In-Licensed products are limited competition products

Company believes, it can sustain 70 pc kind of gross margins in the medium term

There will be merger related costs that ll come up in Q2 as well

Company may raise around 3000 cr via equity route to fund the BSV ltd acquisition. At current valuations ( that Mankind trades, I think it makes sense to raise equity )

Confident of accelerating the BSV Ltd’s growth rates to much higher levels due to speciality + complex to make + monopoly products ( under patent ) – that BSV offers

Disc: holding, should do well over medium term ( IMHO ), biased, not SEBI registered, not a buy / sell recommendation

Is sg mart still operate the business of renewable energy? I found this in there annual report.

I have a question regarding SPRL’s cash flow statement. Why company engage a substantial amount in “Investment” and they have been doing it constantly since 2016? And also where this amount of 446 cr came suddenly in 2016. I have tried to find it out in AR but couldn’t able to find any.

Maybe it is a very naive question to ask but I am trying to learn equity analysis and am very new in this field. It would be very helpful for me if anyone could explain this to me.