Wednesday, 6 January 2016

Case Study: Suven Life Sciences

Public sentiment via moneycontrol boards: Comments

Public Sentiment from the charts: Excellent as reflected by the rising OBV and Price-Volume curves below.




All ratios look excellent. Very high "interest cover" and very low "debt-equity".

The P/E ratio is very high as is the P/B, which is a cause for some concern.

There is equity dilution but it's not rash or bad, looks just fine. It's not affecting the EPS too much.

If they continue to dilute in a responsible manner, there can be no risk to the investor.



Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

Investment Valuation Ratios




Face Value 1.00 1.00 1.00 1.00 1.00
Dividend Per Share 0.60 2.50 0.30 0.30 0.25
Operating Profit Per Share (Rs) 12.53 18.75 4.55 1.98 1.17
Net Operating Profit Per Share (Rs) 40.92 43.68 22.07 17.49 12.89
Free Reserves Per Share (Rs) -- -- -- -- 9.86
Bonus in Equity Capital 45.27 49.33 49.33 49.37 49.37

Profitability Ratios




Operating Profit Margin(%) 30.61 42.92 20.62 11.33 9.05
Profit Before Interest And Tax Margin(%) 27.89 40.95 17.50 8.32 5.41
Gross Profit Margin(%) 28.35 41.19 17.57 8.39 5.43
Cash Profit Margin(%) 22.76 29.80 14.94 9.87 10.09
Adjusted Cash Margin(%) 22.76 29.80 14.94 9.87 10.09
Net Profit Margin(%) 20.87 28.24 11.95 7.03 6.91
Adjusted Net Profit Margin(%) 20.54 28.08 11.91 6.96 6.88
Return On Capital Employed(%) 24.07 64.47 18.81 9.27 4.55
Return On Net Worth(%) 19.44 54.51 19.96 11.26 8.20
Adjusted Return on Net Worth(%) 19.44 54.51 19.96 11.26 7.73
Return on Assets Excluding Revaluations 43.94 22.64 13.22 10.92 10.86
Return on Assets Including Revaluations 43.94 22.64 13.22 10.92 10.86
Return on Long Term Funds(%) 25.17 70.57 21.20 10.43 5.14

Liquidity And Solvency Ratios




Current Ratio 2.74 1.38 1.18 0.98 1.25
Quick Ratio 3.32 1.38 1.13 0.71 1.71
Debt Equity Ratio 0.16 0.25 0.60 0.61 0.52
Long Term Debt Equity Ratio 0.11 0.14 0.42 0.43 0.34

Debt Coverage Ratios




Interest Cover 33.18 20.28 3.43 1.92 1.65
Total Debt to Owners Fund 0.16 0.25 0.60 0.61 0.52
Financial Charges Coverage Ratio 35.68 21.13 4.01 2.53 2.33
Financial Charges Coverage Ratio Post Tax 26.59 15.55 3.87 3.05 3.60

Management Efficiency Ratios




Inventory Turnover Ratio 6.38 6.49 4.79 4.39 4.78
Debtors Turnover Ratio 9.86 11.44 10.52 7.21 4.70
Investments Turnover Ratio 6.38 6.49 4.79 4.39 4.78
Fixed Assets Turnover Ratio 1.79 1.91 1.08 1.03 0.94
Total Assets Turnover Ratio 0.80 1.54 1.05 0.99 0.78
Asset Turnover Ratio 1.06 1.77 1.14 1.03 0.83






Average Raw Material Holding -- -- -- -- 61.92
Average Finished Goods Held -- -- -- -- 24.79
Number of Days In Working Capital 270.28 118.63 91.76 41.68 134.32
Profit & Loss Account Ratios



Material Cost Composition 34.17 29.60 34.43 40.08 37.10
Imported Composition of Raw Materials Consumed 11.50 23.56 38.54 33.39 35.78
Selling Distribution Cost Composition -- -- -- -- 1.74
Expenses as Composition of Total Sales 88.12 90.14 84.53 89.01 74.42
Cash Flow Indicator Ratios



Dividend Payout Ratio Net Profit 7.02 20.26 11.36 24.38 28.06
Dividend Payout Ratio Cash Profit 6.33 19.09 9.05 17.20 18.41
Earning Retention Ratio 92.98 79.74 88.64 75.62 70.24
Cash Earning Retention Ratio 93.67 80.91 90.95 82.80 80.87
Adjusted Cash Flow Times 0.74 0.43 2.38 3.83 4.31

Mar '15 Mar '14 Mar '13 Mar '12 Mar '11
Earnings Per Share 8.54 12.34 2.64 1.23 0.89
Book Value 43.94 22.64 13.22 10.92 10.86



Capital Structure (Suven Life Sciences)
Period Instrument Authorized Capital Issued Capital - P A I D U P -
From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital
2014 2015 Equity Share 40 12.73 127282478 1 12.73
2013 2014 Equity Share 40 11.68 116828788 1 11.68
2012 2013 Equity Share 40 11.68 116828788 1 11.68
2011 2012 Equity Share 40 11.67 116731988 1 11.67
2010 2011 Equity Share 20 11.67 116731988 1 11.67
2009 2010 Equity Share 20 11.59 115874400 1 11.59
2008 2009 Equity Share 20 11.59 115874400 1 11.59
2007 2008 Equity Share 20 11.57 115710200 1 11.57
2006 2007 Equity Share 20 5.76 28816625 2 5.76
2005 2006 Equity Share 10 5 25000000 2 5
2004 2005 Equity Share 10 5 25000000 2 5

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