Highlights from concall (transcript here)
Impact this quarter:
- The sale of female condom was less due to delayed arrival of lab results and also due to the non-availability of containers during the quarter.
- Also, we had some external challenges as well, including the supply line issues as well as the depreciating South African Rand, which impacted their frequency of orders.
Positives
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Strong order book of 187 crores (against TTM annual revenue of 137Cr)
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84 Cr cash out of market cap of 300Cr
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Revenue through female condomn sale is increasing
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Repeat orders from UNFPA and other private customers.
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There might be additional revenue (around 2-3 mil) in 2024 if USFDA approval comes for female condomns
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Obtained six manufacturing licenses for our In Vitro Diagnostics kits from the Drug Controller of India for both domestic and export markets
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Very good traction on initial marketing efforts for IVD. More scope for expanding topline.
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Expecting turnover of about 145 Cr and a PAT of 20-25 Cr. Considering the mgmt is usually conservative, there is a good chance they will beat these estimates.
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Potential acquisition by large companies. They are in talks with one of potential buyers.
Overall
- Quite stable orderbook assures capital preservation and controlled risk to invested capital
- Mgmt is usually conservative. But this also results on the topline being a bit stangnant at times.
- There were concerns on succession planning. Not sure if this has been addressed.
I believe that there is a good potential for the value to be unlocked over next few years if they are acquired by a branded player or establish in key markets (US). Very limited downside for now, but do not expect significant growth either in next 3 qtrs.
Discl: Invested
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