Dear @hitesh2710 : Do you track Lincoln Pharma?
Here are some quick notes:
Lincoln Pharma established in 1979 has its plant located in Ahmedabad.They are present in 51 countries (predominantly Africa, Central Americas & Central Asia) but not in regulated markets. 55% of their revenues come from International markets. Here is the break-up of their revenues from various segments:
General anti-infectives – 25%
Respiratory Systems – 20%
Alimentary Tract & Metabolism -20%
Genito Urinary + Sex hormones – 12%
Others- 33%(the break-up is available in Investor presentation)
This is a micro-cap with a mcap of about 200 crores. On a TTM basis the company is available at a P/E of ~11.88.(low P/E is due to lack-lustre sales growth i think for the past many years) The company’s sales growth over the last many years has not been very impressive, but there are some recent positive developments.
Recent Developments:
1. Company has tripled its Unit 1’s capacity.(has 2 units)
2. Acquires 36.58% stake from Lincoln parental – This is a key development as it offers Lincoln capability to develop complete range of product under therapeutic group like Tablet, Capsule, Ointment, Injectable, Syrup, Dry Powder under Lincoln Pharmaceuticals Ltd
3. Debt reduction
I have also attached their Q1 investor presentation for your reference. LPL-2015-16-Qtr.-1-Business-Presentation.pdf (1.2 MB)
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Will the above developments mean a meaningful turnaround for Lincoln?
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The below snapshot also has the list of their brands. Are these run-of-the-mill products which doesn’t give this company an edge? (sourced from their investor presentation)
Thanks,
Ravi S
Disc – No positions in Lincoln
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