Suven Life Sciences is an Indian biopharmaceutical company that manufactures bulk actives, intermediates, and chemicals for the life sciences industry. It provides contract research and manufacturing services and discovers new drug candidates. The company has granted patents from Europe, Japan, and Mexico. It reported sales of Rs 139.83 crore and net profit of Rs 24.84 crore for the quarter ending September 2014. The analyst recommends buying Suven Life Sciences at current or lower market levels due to its sound financial position, manufacturing capabilities, patents, growing product demand, and potential for growth in contract services.

2. Company Details
Suven Life Sciences Limited, a research-based biopharmaceutical company, designs, manufactures, and
supplies bulk actives, drug intermediates, and fine chemicals for the life science industry worldwide. It
provides advanced intermediates, intermediates, and active pharmaceutical ingredients.
The company also offers contract research and manufacturing services, including development and supply
of pharmaceutical and agro chemical intermediates for new chemical entities. In addition, it provides
discovery and development of new chemical entities for CNS disorders; research collaborative projects with
pharmaceutical companies; and drug discovery research services, including in-vitro screening and molecular
biology, drug metabolism and pharmacokinetics, pharmacology, toxicology and genotoxicity and bioanalysis
as well as operates a formulation development center. The company was formerly known as Suven
Pharmaceuticals Pvt. Ltd. and changed its name to Suven Life Sciences Limited in 2003.
Suven Life Sciences Limited was founded in 1989 and is based in Hyderabad, India. Suven Life Sciences
Limited principally serves customers in the United States and Europe, and sells bulk actives and other
intermediates primarily to customers in India.
Suven has a total of thirteen (13) granted patents from Eurasia, twelve (12) granted patents from Japan and
seventeen (17) product patents from Mexico. These granted patents are exclusive intellectual property of
Suven and are achieved through the internal discovery research efforts
The current market capitalization stands at Rs 2,656.39 crore. The company has reported a standalone
sales of Rs 139.83 crore and a Net Profit of Rs 24.84 crore for the quarter ended Sep 2014.

3. Category No. of Shares Percentage
Promoters 75,657,576 64.76
General Public 28,556,496 24.44
Foreign - NRI 5,226,875 4.47
Other Companies 4,549,648 3.89
Foreign Institutions 1,621,811 1.39
NBFC and Mutual Funds 628,000 0.54
Others 537,553 0.46
Financial Institutions 50,829 0.04
Market Cap (Rs Cr) – 2656.39
Company P/E – 20.68
Industry P/E – 24.43
Book Value (Rs) – 20.86
Dividend (%) – 250%
EPS (TTM) – 10.09
Dividend Yield (%) – 120%
Face Value (Rs) - 1
Share Holding Pattern Financial Details

4. Industry Details
The Indian pharmaceutical market is set to become the eight largest pharma market globally
by 2015. It is forecast to reach at least $40 billion by 2020 and increase its dominance as a
leading player in Asia. It is predicted that the Indian pharma market will be a significant global
competitor by 2020. This depends on the optimization of the following submarkets: public
health, generics, consumer healthcare drugs, biologics, vaccines and patented products.
Despite challenges like drug price control, poor healthcare infrastructure, quality management
and meeting global standards, Indian pharmaceutical sector will see sales rising 14.4 per cent
to $27 billion in 2016, according to a report.
Further, even as the industry is reeling under these challenges, it is reporting double digital
growth due to socio-economic factors like increasing sales of generic medicines, growth in
chronic therapies and greater penetration in rural markets among others.
The Indian pharmaceutical sector, which is rising as a hub of manufacturing cost-effective
generic medicine, accounts for over 10 per cent of global pharmaceutical production. The
sector which manufactures over 400 active pharmaceutical ingredients (APIs) is also a
forerunner in a wide range of specialties involving manufacturing of complex drugs.
“The main focus of the Indian companies is on countries with aging populations such as
Japan, Africa, and Latin America, which need cheaper drugs. It is estimated that Indian
companies will benefit by about $40 billion as 46 US drug patents expire in 2012-15,”

5. Balance Sheet
Sources Of Funds
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Total Share Capital 11.68 11.68 11.67 11.67 11.59
Equity Share Capital 11.68 11.68 11.67 11.67 11.59
Reserves 252.76 142.78 115.85 115.06 106.47
Networth 264.44 154.46 127.52 126.73 118.06
Secured Loans 58.23 83.01 69.52 64.16 43.46
Unsecured Loans 8.05 9.00 8.36 1.60 6.60
Total Debt 66.28 92.01 77.88 65.76 50.06
Total Liabilities 330.72 246.47 205.40 192.49 168.12
Application Of Funds
Gross Block 267.40 238.30 198.89 159.77 155.79
Less: Accum. Depreciation 88.17 76.79 66.44 54.09 46.23
Net Block 179.23 161.51 132.45 105.68 109.56
Capital Work in Progress 12.82 4.15 27.36 3.40 3.40
Investments 0.04 0.07 4.52 20.39 11.60
Inventories 78.63 53.81 46.50 33.37 30.49
Sundry Debtors 65.47 23.78 25.24 31.37 32.61
Cash and Bank Balance 69.40 21.79 3.17 1.94 1.27
Total Current Assets 213.50 99.38 74.91 66.68 64.37
Loans and Advances 81.04 69.01 45.76 26.48 39.25
Total CA, Loans & Advances 294.54 168.39 120.67 94.17 104.58
Current Liabilities 116.02 72.25 65.32 24.12 54.75
Provisions 39.88 15.41 14.27 7.02 6.27
Total CL & Provisions 155.90 87.66 79.59 31.14 61.02
Net Current Assets 138.64 80.73 41.08 63.03 43.56
Total Assets 330.73 246.46 205.41 192.50 168.12
Book Value (Rs) 22.64 13.22 10.92 10.86 10.19

6. Profit and Loss Account
Income
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Sales Turnover 510.31 257.88 204.21 151.04 129.82
Excise Duty 0.00 0.00 0.00 0.61 0.51
Net Sales 510.31 257.88 204.21 150.43 129.31
Other Income 3.03 1.04 1.90 1.25 -0.76
Stock Adjustments 13.98 5.60 5.65 0.53 4.08
Total Income 527.32 264.52 211.76 152.21 132.63
Expenditure
Raw Materials 151.06 88.80 81.87 55.83 43.22
Power & Fuel Cost 25.85 21.93 14.04 10.66 8.16
Employee Cost 31.44 25.38 22.83 18.77 15.75
Other Manufacturing Expenses 27.48 16.59 12.22 9.79 7.78
Selling and Admin Expenses 0.00 0.00 0.00 39.58 41.11
Miscellaneous Expenses 69.40 57.60 55.74 2.72 2.93
Total Expenses 305.23 210.30 186.70 137.35 118.95
Operating Profit 219.06 53.18 23.16 13.61 14.44
PBDIT 222.09 54.22 25.06 14.86 13.68
Interest 10.51 13.51 9.91 6.11 4.44
PBDT 211.58 40.71 15.15 8.75 9.24
Depreciation 8.84 7.87 6.00 5.45 5.29
Profit Before Tax 202.74 32.84 9.15 3.30 3.95
PBT (Post Extra-ord Items) 202.74 32.84 9.15 3.20 3.95
Tax 58.58 2.01 -5.22 -7.14 -3.05
Reported Net Profit 144.16 30.84 14.36 10.40 7.00
Total Value Addition 154.17 121.49 104.84 81.52 75.74
Equity Dividend 29.21 3.50 3.50 2.92 2.90

7. Dividend and Bonus History

8. Index and Company Comparison

9. Company Forecast

10. PBIT – 40.95 v/s 17.5
RoCE – 64.47 v/s 18.81
RoE – 68.83 v/s 21.87
Net Profit Margin – 28.08 v/s 11.91
Return on net worth – 54.51 v/s 11.81
Reserves – 252.76 cr v/s 142.78 cr
PAT – 144.16 cr v/s 30.84 cr
Total assets – 330.73 cr v/s 246.46 cr
Net sales – 250.10 cr v/s 257.88 cr
Book Value – 22.64 cr v/s 13.22 cr
Days BSE NSE
30 210.05 210.28
50 208.86 209.06
150 155.72 155.82
200 136.42 136.52
Important Ratios Simple Moving Average

11. Buy Suven Life Sciences at current or lower market levels
Reasons for the recommendations are :
Sound financial position of the company.
Availability of adequate manufacturing facility to meet demands.
Partnership and MoU with worlds leading pharma companies.
Patents for various products from Europe, Pan Asia and America.
Increasing demand of the product mix.
Low Debt Equity Ratio.
Constantly good performance and maintenance of good profit margin.
Huge growth potential in Contract Research And Manufacturing Services (CRAMS) in
pharma sector in India.
Recommendations