# Bajaj Health care Mcap around 430 Cr , CMP 322, API manufactures, Promoter holding around 67% , last q eps around 7 , recently acquired one sick unit and another acquisition will be completed by September,6 manufacturing unit
Apart from many API and intermediate they manufactures API for Vitamin C and Chlorhexidine ( hand sanitizers and mouth wash ) both in demand , No impact due to Covid , Company is in API, INTERMEDIATE , And Formulations , they are having Rice Mill also .
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Company works in three segments 1- API 2- Intermediate 3- Formulation
Company is in manufacturing of various API for amino acids , vitamins,antibiotics, anti epilepsy,Heart drugs,and asthma drugs and other drugs .
Company is in manufacturing of various API for amino acids , vitamins,antibiotics, anti epilepsy,Heart drugs,and asthma drugs and other drugs .
Formulation unit manufacturers own brand and contract manufacturer for GSK pharma and USV and manufactured formulation for diabetes,vitamins,malaria, antibacterial,anti convulsion and other also and manufacturing tie up with TTK health care .
Business is Domestic plus international both
Company exports to Europe, Australia,Africa , South America
Company is having right now 5 plants for its products ( In morning I wrote 6 sorry for that)
Company exports to Europe, Australia,Africa , South America
Company is having right now 5 plants for its products ( In morning I wrote 6 sorry for that)
They signed agreement to buy 2 units of Vet pharma in Tarapur ( in feb 2020) at 20.50 Cr ( this is for intermediate for Chlorhexinedine and Tramadol ( pain killer)
In April 2020 they acquired stressed asset ( one factory at Palghar and industrial land in Dahej ) at 60 Cr and acquisition will be completed by Dec 2020 .
The targeted assets have installed capacity of 111 metric tonnes per month and
The targeted assets have installed capacity of 111 metric tonnes per month and
are capable of manufacturing bulk drugs and active pharmaceutical ingredients (API) like mefenamic acid, artemether, lumefranrine, aceclofenac albendazole, and nimesulide.
FY 20 - CFO around 20 Cr and EPS 16.31
FY 20 - CFO around 20 Cr and EPS 16.31
Negatives
Debt of 80 Cr which will increase further after-purchase of new units and any poor performance can create negative impacts on financial health .
API segment is very competitive .
Formulation business - sales growing but still showing losses.
No dividend
Debt of 80 Cr which will increase further after-purchase of new units and any poor performance can create negative impacts on financial health .
API segment is very competitive .
Formulation business - sales growing but still showing losses.
No dividend
Plus points
New acquisitions and anticipated growth
Some products are in high demand like Ascorbic acid ( API for vitamin C) Chlorhexidine (antiseptic hand sanitizer- hand sanitizer can be either Alcohol based or Chlorhexidine based or mixture of both )nutritional supplements.
New acquisitions and anticipated growth
Some products are in high demand like Ascorbic acid ( API for vitamin C) Chlorhexidine (antiseptic hand sanitizer- hand sanitizer can be either Alcohol based or Chlorhexidine based or mixture of both )nutritional supplements.
FY20 highlights- EBITDA increase of 17%
PAT margin 4.39 to 5.45%
ROCE 21.53 to 21.67%
ROE 12.63- to 14.84
Last Q EPS was 6.96
If they are able to perform like q4 then annual EPS may be around 26-30 .
( Rice Mills is a separate entity and not included in its financial)
PAT margin 4.39 to 5.45%
ROCE 21.53 to 21.67%
ROE 12.63- to 14.84
Last Q EPS was 6.96
If they are able to perform like q4 then annual EPS may be around 26-30 .
( Rice Mills is a separate entity and not included in its financial)
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