Indoco manufactures and markets branded formulations and APIs for the domestic and export markets. In domestic formulations, through its nine marketing divisions, the company serves a range of specialties.
Indoco reported robust revenue growth in both domestic (up 39% YoY to ₹ 193 crore) and export formulations (up 44% YoY to ₹ 190 crore)
Indoco’s share price has grown by ~1.9x over the past three years (from ~₹ 185 in May 2019 to ~₹ 363 levels in May 2022).
We value Indoco Remedies at ₹ 510 i.e. 18x P/E on FY24E EPS of ₹ 28.4.
Apart from Indoco, in healthcare coverage we like Ajanta.
|Particulars||FY19||FY20||FY21||FY22||5 Year CAGR(FY17-FY22)||FY23E||FY24E||2 Year CAGR (FY22-FY24E)|
|EBITDA margins (%)||0.1||0.1||0.2||0.2||-||0.2||0.2||-|
|M.Cap/ Revenues (x)||3.5||3.0||2.7||2.2||-||1.8||1.6||-|
|EV to EBITDA (x)||47.3||29.1||16.1||11.0||-||9.6||7.5||-|
Q4FY22 Results: Strong numbers in both domestic, exports
Q4FY22 Earnings Conference Call highlights
|Q4FY22||Q4FY21||Q3FY22||YoY (%)||QoQ (%)||Comments|
|Revenue||409.1||305.1||358.0||34.1||14.3||YoY growth driven by strong growth in domestic and exports formulations|
|Raw Material Expenses||131.5||87.9||108.7||49.5||21.0|
|Gross margins (%)||67.9||71.2||69.6||-332 bps||-178 bps|
|EBITDA (%)||19.7||17.9||20.5||175 bps||-83 bps||YoY improvement mainly due to cost control measures and better operation leverage|
|PBT before EO & Forex||59.8||33.6||50.6||78.0||18.1|
|Forex & EO||0.0||0.0||0.0||0.0||0.0|
|Net Profit||40.5||25.0||33.0||61.8||22.6||YoY growth mainly due to strong operational performance and lower interest cost|
|Domestic Formulations||192.9||139.2||181.6||38.5||6.2||YoY growth due to strong growth in anti-infective, cardiac and respiratory therapies|
|Export formulations||189.6||131.8||143.1||43.8||32.5||Regulated markets grew 39% YoY and semi-regulated markets grew 25% YoY|
|APIs||13.1||19.9||19.7||-34.2||-33.5||Captive consumption at 53%|
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