Suven Pharmaceuticals Limited has become a wholly owned subsidiary of Suven Life Sciences Limited focused on contract development and manufacturing operations (CDMO) and CRAMS specialty chemicals and formulation business. It has four commercial molecules under CDMO that are under patent protection until 2025. Suven is among the top two suppliers of intermediates for these molecules. The company has healthy financials with annual sales growth over 20%, profit growth over 14%, and stock price CAGR over 69%. It has low debt and high returns on equity and capital employed. The company is expected to continue growing its revenue by 10-15% annually through commercializing new facilities for advanced API manufacturing.

1. Partnering Drug Development,
Manufacturing
……and beyond!
SUVEN PHARMACEUTICALS LIMITED

2. BUSINESS PROSPECTS
• Suven Pharmaceuticals Limited, a company incorporated in November 2018, has become
Wholly Owned Subsidiary of Suven Life Sciences Limited, effective February 2019.
• Suven Pharmaceuticals is focused on the business of Contract development and
Manufacturing operations (CDMO) and CRAMS specialty chemicals and formulation business.
• Four commercial molecules in the CDMO segment are all under patent protection up to 2025.
Suven is among the two suppliers of intermediates to these molecules.

3. Business Prospectus Post Demerger
Innovation &
Patenting
Pre-clinical
Development
Human clinical
studies
Regulatory/co
mmercial
launch
NCE Research
Process
Research/
custom
synthesis
Specialty
Chemicals/
API
Formulation
Development
Formulation
Commercial
Contract Development &
Manufacturing Operation

4. FINANCIAL ANALYSIS
Particulars
(figures in INR)
Market capitalization 13170 cr.
Current price Rs.496
Book value Rs. 45
52 week H/L 565/153
Equity Capital 25.5 cr.
Face Value 1
Mid range momentum
70.61% away from 52 week low
12.27% away from 52 week high

5. SHAREHOLDING PATTERN
• Promoters - 60%
• Institutions – 12.5%
• Non Institutions – 27.5%
• Total = 100.0%

6. Profit & loss
Figures in cr.
2019 2020 2021
Sales 378 834 1,009
EBITDA ----- 384.8 442.4
EBITDA Margin (%) ----- 46.1 43.8
Net Profit 109 317 362
Net Profit Margin 28.83% 38.00% 35.87%
Net profit margin = Net profit/Net sales*100 Rating - 4/5
(5% is low, 10% is healthy Margin, 20% is considered higher/good Margin)
Balance Sheet
Figures in cr.
2019 2020 2021
Equity Capital ------- 13 25.5
Reserve 578 832 1,155.4
Total Debt 83 185 141.2
Net Fixed Assets 271 357 384
Capital WIP 111 102 96.3
Investment 0 307 541

7. Cash Flow Statement
Figures in cr. 2019 2020 2021
Cash from Operating
Activity
50 416 383.4
Cash from Investing Activity -65 -421.1 -311.3
Cash from Financing Activity 26 6.4 -76.6
Net Cash Flow 11 1.2 -4.4
Closing Cash 14.1 14.1 9.7
Historical Growths
• Compounded Sales Growth - 21.1%
• Compounded Profit Growth - 14.3%
• Compounded Expense Growth – 26.39%
• Stock Price CAGR - 69.77%

8. KEY FINANCIAL RATIO
RATIO Remark DESCRIPTION
EPS 14.2 Higher earning
/share is better
The amount of net income earned per share of stock
outstanding.
RoE 30.7 Higher is better The return on equity is a measure of the profitability of a
business in relation to the equity
RoCE 31.2 Higher is better A profitability ratio measure how efficiently a company is suing its
capital to generate profits.
RoIC 38.2 Higher is better Ratio that calculate how profitably a company invests the
money it receives from its shareholders.
P/E 33.2 Higher is better Ratio for valuing a company that measure its current share
price relative to its per share earnings
Current Ratio 3.3 >2 is good
<2 is not good
A liquidity ratio that measure a company's ability to pay short
term obligations.
Debt Equity Ratio 0.1 >2 is good
<2 is not good
The debt-equity ratio is a measure of the relative contribution
of the creditors and shareholders or owners in the capital
employed in business.

9. MANAGEMENT ANALYSIS
• ID/TD DIRECT0R = 4
INDEPENDENT DIRECTOR = 2 (33%)
TOTAL = 6 RATING =1.7/5
Directors Salary (in lakhs)
Shri Venkateswarlu Jasti 334.50
Shri DG Prasad 2.80
Shri Srivari Chandrasekhar 0.90
Smt Deepanwita Chattopadhyay 1.90
Shri JV Ramudu 2.70

10. CONCLUSION
The company’s share is fair valued, so it is good to buy this company’s share for a
long term investment
This company is into contract manufacturing and brings 3-4 molecules every year.
 Best margin in industry – EBITDA 45%
 Company is debt free and return of equity is around 38%
 The company is commercializing a specialized facility to vizag to manufacture
advanced API’s and expect revenue growth of 10 to 15 %

11. SUBMITTED TO HIMANSHU SIR
BY MONA