Marksans Pharma Ltd. share price target

We recommend a BUY on the stock with a target price of Rs 362/share, implying an upside of 10% from the CMP.

Growth in demand and capabilities

Consolidating on the back of the Teva acquisition

Marksans Pharma has entered into a Business Transfer Agreement with Tevapharm to acquire its business relating to the manufacture and supply of bulk pharmaceutical formulations in Goa. The company plans to manufacture tablets, hard and soft gel capsules, ointments, gummies, and creams from the new capacity.

Growth visibility with reasonable valuation

We had hosted Investor Conference on 29th & 30th September 2021 where 15 companies participated at our Arihant Rising Star's Virtual Summit. Key takeaways from the conference are as follows:...

Source: Bloomberg, Centrum Research, *as on 8th June 2018 Recommendation and key risks: We have revised our FY19E and FY20E EPS downwards by 41% and 43% respectively. We downgrade MPL to Hold from Buy rating, with a TP of Rs31 based on 18x March'20E EPS of Rs1.7, and a 10.2%% upside from CMP. Key positive upsides would be additional ANDA approvals from US FDA...

Source: Bloomberg, Centrum Research, *as on 8th June 2018 Recommendation and key risks: We have revised our FY19E and FY20E EPS downwards by 41% and 43% respectively. We downgrade MPL to Hold from Buy rating, with a TP of Rs31 based on 18x March'20E EPS of Rs1.7, and a 10.2%% upside from CMP. Key positive upsides would be additional ANDA approvals from US FDA...

Recommendation and key risks: We have revised our FY18E and FY19E EPS downwards by 3% and 19% respectively. We upgrade MPL to Buy from Hold rating, with a TP of Rs55 based on 18x March'20E EPS of Rs3.0, and a 45.3% upside from CMP. Key positive upsides would be additional ANDA approvals from US FDA and...

Source: Bloomberg, Centrum Research, *as on 17h November 2017 Recommendation and key risks: We have revised our FY18E and FY19E EPS downwards by 14% and 7% respectively in view of forex losses and increase in crude based raw material prices. We downgrade MPL to Hold from Buy rating, with a TP of Rs45 based on 18x March'19 EPS of Rs2.5, and a 10.7% upside from CMP. Key positive upsides would be additional ANDA approvals from US FDA and key...

Marksans R&D; capabilities include dossier development, chemical synthesis, process optimization, formulation development, analytical development and conducting stability studies. The company has a team of over 50 experienced scientists specializing in formulation development and analytical development. The conpany has possessed end-to-end capabilities from Lab scale development to Pilot scale up and from commercializing the product for large...

Marksans Pharma has acquired US based Time-Cap Labs Inc in a transaction was valued at USD 28 mn. Time-Cap Laboratories, Inc is a New York based solid dosage tablet manufacturer synergies arise as it seeks to grow its presence in USA leveraging the manufacturing and packaging facilities of Time-cap, the brand equity of its products and distribution value chain. Time-cap has revenues of USD 30 mn per year and EBITDA of USD 4 mn and is a debt free company

The company reported revenue growth of 8.9% for Q4FY15 over Q4FY14 and annual revenue reported a growth of 26.4% for FY15 over FY14.The company's Europe & UK segment reported growth of 25.7% while the US & North America reported growth of 65.3%. The improved product mix is reflected in operating margins which to 23.2% from 19.2% in FY14

Marksans Pharma: Strong growth continues; Target revised upwardsMarksans Pharma is a finished dosage producing company (with increasing focus on soft gelatine dosage manufacturing) and with subsidiaries in UK and Australasia operating in OTC and Rx. It has manufacturing facilities in Goa (USFDA, UKMHRA and TGA approved) and Southport, UK (UKMHRA).

Marksans consolidated revenue up by 32.2% YoY and PAT up by 37.6% YoY in nine months of FY15. EBITDA margins at 23.35% for the 9 month period have grown at 50.8% YoY and a PAT growth at 13.5%. The company's US formulations segment reported revenue growth at 81.3% and reported revenues of Rs.120 crore for the nine month period

Karvy Initiates coverage of Marksans with a Buy rating: We expect its softgel capabilities to improve its presence in USA. Clear of the debt overhang on the company financials and propelled by the subsidiaries return to growth, the company is expected to move into the next phase of growth and sustain its higher return ratios.