If you see FY22 Vs FY21
It looks like the markets are worried about the margins, Will they be able to come back to old margins? that’s where the upside is. It looks like the raw material, employee cost, etc everything in the expense item has gone up for them.
Now if you see last quarterly – Q1 FY23
The Pharma business grew 9% delivering revenues of INR 1,485 crores. If you annualized it then it comes to 1485 * 4 = 5940 Cr and if you calculate Mcap / Rev = its trading at 3.6x rev.
EBITA margins dipped as well but their say is they they do more margins in 2nd half .
“The business broadly delivered in line with EBITDA margin at 11% during the first quarter
versus 12% in the same quarter last year, despite moderate growth in our CDMO business, an
increase in the raw materials, packaging materials and operating costs.
As we have mentioned earlier, the nature of our Pharma business is such that we generate
significant part of our profits in the second half of the financial year. Last year, the second half
contributed nearly 70% to our profitability.”
Not able to find details on this – ” anyone knows what execution issues they are facing ?”
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