Today I was analysing this company and here are my Notes
Company is confident of growing top line by 25+% this year ( 2024-25) and the EBIT margin is
going to do slightly better on a hight number of 29.5% already.
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US and America are the major markets and it would stay like this , expansion to emerging
markets have started , planning to enter Europe as well. -
Not keen on Generic medicines even for India thought there is growth as there is high competition and associated low margins.
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Acquired LiqMeds ( from UK that can continue to focus or rear disease) , Acquired Zokinvy and it is produced by Eiger BioPharmaceuticals ( zydus is the only company that has rights to produce this medicine in the world )
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Emerging / Developing markets are coming up well , introducing existing products there.
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RnD Focus is on Saroglitazarv (fatty leaver disease), Desidustat (Chronic Kidney disease for
china market ), CUTX101 (Menkes disease) -
Working with Accenture for ERP , Supply Chain Digitalisation with Pando are driving the
efficiency measures and helping secure good EBIT Margins.
My concerns
- Salary for the promoters is very high when compared with the other Pharma organisations , but the correlating between sales growth and salary growth looks ok and as a % of top-line also seems ok
- They have really huge good will in the Balance Sheet , 30% of their Assets are “Intangible Assets” which is quite high when compared with the relates companies in the industry ( I understand that this has come due to acquisitions but still a little skeptical and I closely track it )
Ps : At the time of this post I am invested in this company .
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