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Background Established in 1958, Minda Industries (MIL) is a flagship Company of UNO MINDA GROUP and one of the leading suppliers of proprietary automotive solution to OEMs. Headquarter at Manesar, Gurgaon, the company has 62 plants globally and R&D centers spread across the globe in 8 locations. The company offers a wide range product across different verticals of auto components like switching systems, lighting systems, acoustic systems and alloy wheels among others. It has more than 230 design registration and more than 30,000 touch points. Company has ~50% market share in switch segment thus leading automotive components...
Alembic Pharmaceuticals Ltd (ALPM') reported in-line numbers for Q2FY22 on the back of strong momentum in domestic business and better gross margins (~74% vs ~71% in Q1FY22). US business continued to remain under pressure on the back of pricing pressure in the base business and full impact of Theophylline competition in Q2FY22. Domestic business (ex Azithromycin) grew >30% YoY as per the management which was led both by margins and price hikes. On Rhizen, TG Therapeutics have guided USD 50mn sales for Ukoniq over next year which would entail higher royalty revenues. While the management has withdrawn its FY22 EPS guidance, higher launch rate, faster remediation of Injectable unit and approval for CLL indication remains key positive triggers for the medium term.We maintain BUY on the stock, with a March-23 TP of Rs1,200, thus an upside of 51% over the CMP. ALPM is currently trading ~18x / ~13x PE for FY22E / FY23E. Delay in Remediation of F3 (New Injectable Facility), USFDA action in Panelav F1 and domestic...
STR reported a lower than expected performance in 2QFY22 due to continued headwinds in the US business. Sales in other regulated markets witnessed a recovery, with an 18% YoY growth. With the completion of Endo products and facility acquisition, STR will have a diversified US portfolio, with a lower proportion of Acute products as well as differentiated products such as hormones, Nasal Sprays, Gels, Modified Release products, and controlled substances, which are less susceptible to price shocks like that seen in 1HFY22. Other regulated/emerging markets are...
Alembic Pharma (ALPM) delivered in-line 2QFY22 earnings. Subdued performance in US/API was offset by a better-than-expected show in the Domestic Formulation (DF) segment. The YoY declining trend in the US business has reached a trough with the limited impact of price erosion and an increased pace of launches going forward. We lower our FY22E/FY23E EPS estimate by 7.5%/5.8%, factoring in a) a delay in successful compliance at injectables sites, b) gradual revival in US sales, and c) higher RM/logistics costs. We value ALPM at 18x 12M forward...
Factoring in its 2QFY22 performance, we decrease our FY22E/FY23E earnings estimate by 20%/8% due to higher RM prices and expenses on account of increased freight cost and supply-chain disruption. We value the stock at 25x FY23E EPS to arrive at our TP of INR285. We maintain our Buy rating....
For Q2FY22, Midhani's consolidated operations posted a topline of | 188 crore, up 15% YoY & 65% QoQ. Consolidated EBITDA for the quarter was at | 52 crore, up 4% YoY and 103% QoQ Midhani's consolidated EBITDA margin for Q2FY22 was at 27.6% compared to 22.4% in Q1FY22 and 30.5% in Q2FY21. Ensuing consolidated PAT for...
Domestic business has 1.5% of market share of IPM with three brands in the top 100. Going ahead, emphasis is on specialty segment with 94% of new launches being specialty products The company has invested ~ | 1800 crore in recent years in facilities geared mainly towards US formulations. As of Q2FY22, it has filed 214 ANDA and has 150 approvals with 98 launches in the US...
Availability of semiconductors is expected to improve in future with receding effect of pandemic and vaccination in full swing. Robust order book, sustained export demand and aggressive network expansion will drive the next phase of growth. CV industry is on a road to recovery with growth across sectors. However, we are cautious on the time to recovery and hence we downgrade our rating on the stock to HOLD with a revised target price of Rs. 2,190 based on SOTP valuation. Improved realization due to price hikes and higher exports...
Petronet LNG (PLNG) reported a beat on our estimates, led by higher-thanestimated throughput (Dahej back at >100% at 102%, after being subdued for the last three quarters, with Kochi utilization robust at ~24%). The company expects spot LNG prices to cool off post the winter season. Currently, huge demand is seen from China and Japan, with supply constraints resulting in a spike in spot LNG prices. Despite the immediate challenges, the management remains confident about achieving >900tbtu in volumes for FY22 (~96% utilization, i.e., flat YoY supported by tied up contracts). Our numbers are in line with the...
