Vivimed Labs is initiating coverage as a buy recommendation with a target price of Rs. 468 per share. At the current market price of Rs. 343, the stock is trading at earnings multiples of 6.0-5.5x for FY13-FY14, representing upside of 36% over 24 months. Vivimed has a diversified portfolio of specialty chemicals and pharmaceuticals and will benefit from expected growth in these industries. Recent acquisitions will also help fuel revenue growth through expanded market reach and synergies. However, mounting debt remains a risk.

1. Vivimed Labs Ltd.
BUY
Target Price ` 468 CMP ` 343 FY14 PE 5.5x
Index Details We initiate coverage on Vivimed Labs Ltd as a BUY with a Price
Sensex 18,154 Objective of ` 468 (target 7.5x FY14 EPS). At CMP of ` 343, the stock is
Nifty 5,522 trading at 6.0x and 5.5x its estimated earnings for FY13 & FY14
BSE 100 9,568
representing a potential upside of ~36% over a period of 24 months.
Vivimed Labs Ltd is a diversified global company with a unique
Industry Pharma
portfolio of products in the Specialty Chemicals and Pharmaceuticals
categories. Niche product portfolio in specialty chemicals coupled with
Scrip Details significant inorganic growth through its recent acquisitions in the
Mkt Cap (` cr) 348 pharma space should help the company post an earnings growth of
BVPS (`) 194 31.7% CAGR over the period FY11 to FY14.
O/s Shares (Cr) 1.4
 Niche product portfolio and expansions to drive future growth
AvgVol Lacs) 0.7
52 Week H/L 354/213 The matured Home and Personal care (H&PC) global markets are expected to
Div Yield (%) 0.6 grow at CAGR of 3.2% to USD 368 bn by 2015 while in India the H&PC markets
STOCK POINTER
are expected to grow at a faster pace of 12.2% to USD 8 bn by 2015. Vivimed
FVPS (`) 10.0
being well embedded as a global quality supplier of active ingredient to the H&PC
industry is best placed to benefit from this growth. We expect Vivimed’s overall
Shareholding Pattern revenues to grow at a CAGR of 39.9% to ` 1139.9 crore over the forecast period of
Shareholders % FY11-14 with 50.0% of the revenues coming for the specialty chemicals product
portfolio and the balance from the capacity expansions and inorganic growth in the
Promoters 43.6
pharmaceutical space.
DIIs 1.6
FIIs 18.2  Recent acquisitions to fuel revenue growth
Public 36.6
In a strategic move, to enhance presence across the value chain and hasten entry
Total 100
to the regulated markets (which generally has a 36-48 months penetration lead
time), Vivimed acquired Uquifa, a 75 year old API and intermediates manufacturing
Vivimed vs. Sensex company. Considering Vivimed’s, strong track record of successful acquisitions, we
expect the company to effectively leverage these acquisitions and add value.
Besides Uquifa, Vivimed has also acquired two small formulation companies Klar
Sehen Pvt Ltd & Octtantis Nobel Labs for a consideration of ` 24 crore and ` 5
crore, respectively. These acquisitions would help Vivimed reduce costs by
achieving manufacturing synergies and expand sales and profitability by increasing
market and client penetration. We expect, Vivimed to earn revenues to the tune of `
352 crore in FY14 from these acquisitions.
Key Financials (` in Cr)
Net EPS Growth RONW ROCE EV/
Y/E Mar EBITDA PAT EPS P/E (X)
Revenue (%) (%) (%) EBITDA(X)
2011 416.0 84.1 48.8 48.0 - 24.8 16.4 7.1 11.9
2012E 636.2 126.5 58.9 42.3 -12.0 13.0 14.8 8.1 7.9
2013E 982.1 176.7 91.6 57.1 35.0 16.9 16.6 6.0 5.7
2014E 1139.9 205.5 111.6 62.4 9.3 17.2 17.5 5.5 4.9
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2.  Significant entry barriers to ensure limited competition leading
to sustainability of revenues
In the active ingredients market where product quality has precedence over price,
becoming a preferred supplier to global majors is a strenuous and prolonged process.
Vivimed with its quality offering has established strong relationships with global
majors and over time has embedded itself within these multinationals and now is a
supplier across a wide range of products.
 Valuation
At the CMP of ` 343, Vivimed is trading at 6.0x and 5.5x its estimated earnings for
FY13 and FY14. We initiate coverage on Vivimed Labs Ltd as a BUY with a Price
Objective of ` 468 (7.5x FY14 EPS) over a period of 24 months.
We have valued the stock at 36% premium to its historical average valuation of 5.5x
considering the robust product portfolio and the recent acquisitions. Vivimed’s
earnings are expected to grow at a 31.7% CAGR over the forecast period FY11-14
which is far ahead of the sector’s growth. Post the integration of the acquisitions, we
expect Vivimed to be re-rated considering its enhanced global presence and
broadened product portfolio. Though, mounting debt remains an overhang on the
stock.
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3.  Company background
Vivimed was established in 1989 as a single product (VIV-20) and single location
company. Since then the company has grown by leaps and bounds to emerge as a
preferred supplier of several key ingredients to MNCs in the specialty chemicals &
pharmaceutical segments.
In the specialty chemical division, Vivimed is engaged in the manufacturing and
marketing of active ingredients within the Home & Personal Care products, and
Industrial care products. While, in the pharmaceutical division, the company provides
contract manufacturing services as well as undertakes manufacturing and marketing
of branded formulations. In addition, Vivimed through timely acquisitions of James
Robinson, Harmet International as well as the recent acquisition of Uquifa, has
maintained its growth trajectory as well as further enhanced its presence in the global
markets.
Vivimed Labs- Business Organization
VIVIMED LABS
Specialty
Pharmaceuticals
Chemicals
CRAMs Formulations APIs
Active Industrial
Ingredients Care
Uquifa
Vivimed Labs India
Prod.,Sales and
(Prod, Dist & R&D)
Klar Sehen Prod & Marketing
Marketing
Vivimed Labs
(Marketing &Distribution)
Creative Healthcare Octtantis Nobel
Vivimed Labs UK (Prod & Dist) Distribution
(Sales, Marketing and R&D)
Vivimed Labs USA
(Production, Sales and
R&D)
Source: Vivimed, Ventura Research
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4. Headquartered in Hyderabad, Vivimed operates out of 9 manufacturing facilities (6
domestic and 3 overseas), 3 R&D facilities (1 domestic and 2 overseas). It has a
customer base spread across 50 countries with SBUs based in America (Vivimed Labs
USA Inc) and Europe (Vivimed Labs Europe) along with a marketing office in China.
Manufacturing Plants of Vivimed Labs
Plant Location Manufacturing Details
Bidar Northern Karnataka Specialty Chemicals Sunscreens, Anti Microbial and Preservatives
Bonthapally Hyderabad Specialty Chemicals Home & Personal Care actives
Jeedimetla Hyderabad Formulation and R&D Dosage formulations
Haridwar Uttarakhand Formulations Sterile products - Small Volume Parentals
Kashipur Uttarakhand Formulations Non-Sterile Syrups, tablets, Capulses and dry powders.
Cuernavaca Mexico APIs Acquired through Uquifa Acquisition
Sant Celoni Spain APIs Acquired through Uquifa Acquisition
Llica de Vall Spain APIs Acquired through Uquifa Acquisition
Chouttuppal* Hyderabad Formulations Tablets & Capsules
Srikakulam** AP SEZ Synthetic organic chemicals
Source: Vivimed, Ventura Research
 Niche product portfolio and expansions to drive future growth
The matured Home and Personal Care (H&PC) global markets are expected to grow
to USD 368 bn by 2015 while the Indian H&PC markets are expected to grow at a
faster pace of 12.2% to USD 8 bn by 2015. Vivimed being well embedded as a global
quality supplier of the active ingredient to the H&PC industry is best placed to benefit
from this growth. We expect Vivimed’s overall revenues to grow at a CAGR of 39.9%
to ` 1139.9 crore over the forecast period of FY11-14 with 50.0% of the revenues
coming for the specialty chemicals product portfolio and the balance from the
capacity expansions and inorganic growth in the pharmaceutical space.
Revenue and Profitability trend
Rs. Crore (%)
1200 25%
1000 Triclosan Triclosan CaGp
Triclosan CaGp 20% Avobenzone
800 CaGp Avobenzone Climbazole Ben 4
Triclosan Avobenzone Climbazole 15% TCC
Triclosan CaGp Climbazole Ben 4 Starcat
Triclossan 600
CaGp Avobenzone Ben 4 TCC ZnPTO
CaGP Avobenzone Climbazole Starcat 10%
TCC SAP*
400 ZnPTO
200 5%
0 0%
FY10 FY11 FY12E FY13E FY14E
Revenue EBIDTA Margin(%) PAT Margin(%)
Source: Vivimed, Ventura Research
Avis
Avis Ben-4
Avis Avis Ben-4 Dantuff-z
Ben 4 Ben 4 Dantuff-z Etone
Etone Co-Guars
Vivinol th
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5.  Specialty chemical business - a major contributor to growth
Led by ` 25 crore worth of expansions at its existing two specialty chemical plants,
we expect the specialty chemical division to grow at a three year CAGR of 21.7% to `
570.3 crore by FY14. Vivimeds portfolio of active ingredients caters to nearly 75% of
the global H&PC market (USD 268 bn, 3.2% CAGR) and with these enhanced
capacities the company is expected to benefit immensely.
Specialty Chemicals-Revenue and EBITDA Margin
Rs. Crore (%)
600 25
500 20
400
15
300
10
200
100 5
0 -
FY11 FY12E FY13E FY14E
Revenue EBIDTA Margin RHS (%)
Source: Vivimed, Ventura Research
H&PC Products dominates the specialty segments business
1% 1%
2%
Hair Care
6%
Pharmace Antimicrobles
6% 26%
uticals Sun Care
22%
Intermediaries
9%
Oral Care
Photohromics
13% Other Chemicals
Specialty
Chemicals
18% Imaging
78% Skin Care
18% Preservatives
Source: Vivimed, Ventura Research
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6. Robust Industry growth to support revenue growth
Global Personal Care Market Domestic Personal Care Ingredient Market
USD bn USD mn
400 368 900
354 800
328 341 800
350 315
291 303
300 280 700
250 600
200 500
150 400 350
100 300
50 200
0 100
2008 2009 2010 2011 2012 2013 2014 2015 0
2009 2015
Source:Vivimed,Ventura Research Source:Vivimed,Ventura Research
Global Personal Care Ingredient Market Global Personal Care Ingredient Market Breakup
USD bn Oral Others
20 Care 6%
9%
15
15
10
10
Skin
care
Hair 50%
5 Care
35%
0
2009 2015
Source:Vivimed,Ventura Research Source:Vivimed,Ventura Research
James Robinson acquisition - complete portfolio offering in the Hair care
segment.
Vivimed’s product portfolio is dominated by the products in the Sun Care, Hair Care
and Anti microbial segments. Post the acquisition of James Robinson’s, Vivimed has
a complete portfolio of Hair Care products catering to each sub segment of
Shampoos, Conditioners, and Hair Dyes. Vivimed also has a tie up with International
Specialty Products (ISP) for the joint marketing of various sunscreen products thus
expanding its base in Sun Care segment.
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7. Product portfolio in Home & Personal Care
Divisions Products Description & End Uses Key Clients
VIV-20 Antibacterial For Toothpastes & Mouthwash
Unilever,
VIVCAL-G Nutraceutical, Dental enamel protection
Oral Care P&G, Dabur,
VIVHEX Antibacterial for Mouthwash BDF
VIVHEX-G Antibacterial for Mouthwash
AVIS Broad Spectrum UV-A Filter
CINNAMON UV- B Category 1 Filter
Unilever,
BEN-3 Oil Soluble UV-A & UV -B Filter
Sun Care P&G, L'Oreal,
Ben-4 Water Soluble UV-A & UV -B Filter BDF
OCTYNE-B Oil Soluble UV- B Filter
ETONE UA-A & UV- B Filter
VINTOX Anti-Oxidant & Anti-aging Molecule
VIVINOL Skin Lightening agent BASF,
Skin Care
TRU ALOE Skin Moisturizer Sederma
C-VITE Anti Wrinkle
DANTUFF-Z Broad Spectrum Anti Dandruff agent
DANTUFF-C Anti-Fungal agent in transparent Shampoos
DANTUFF-K Anti dandruff & Anti-Fungal agent
Hair Care Unilever, ITC,
VIPIROX Anti dandruff agent
Dabur
VIVIDINE Hair growth agent
CO-GUAR Emollients & Conditioners
COSVAT Anti-Fungal & Anti bacterial
Preservatives
VIVILIDE Wide Spectrum bacteriostatic
Unilever,
VIVMAX Antimicrobial & Germicidal
Antimicrobials BASF, J&J
VIV-20 Antibacterial For Cosmetic & Toiletries
Source: Vivimed, Ventura Research
 Industrial segment to complement growth in H&PC
In addition to Home & Personal Care segment, Vivimed caters to the Industrial
Segment with products in photo chromatic dyes and imaging chemicals. In the photo
chromatic segment, Vivimed is a world leader in the development of innovative photo
chromic dyes manufactured and marketed under the name of Reversacol.
Product Portfolio in Industrial Care
Category Key Products Description End Uses Key Clients
Photochromic Lenses, toys, films, Clothes, Keystone, Corning,
Reversacol Patented high Performance dyes
Dyes Cosmetics like nail Varnish Mildex Optical
Phenidone Black and White development agent
Imaging
Dimezone Black and white developing agent Anti- X-rays, Photography Kodak, Fuji, LG
Chemicals
Nitroindazole fogging agent
Source: Vivimed, Ventura Research
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8.  SEZ facility on the cards
Vivimed is also establishing a SEZ in Andhra Pradesh at a cost of ` 120 crore to cater
to the growing export demand of synthetic organic chemicals in the H&PC segment.
In addition, the company is expanding its product base by foraying into new segments
with the development of a Skin lightening ingredient and chemicals for Printed
Electronics. Since the SEZ is expected to commission post FY14, we have not
factored these in our revenues.
 Product portfolio and expansions in Pharma to further enhance
value
Vivimed has a wide range of formulation products across therapeutic segments with
significant presence in CRAMs.This segment is poised for major growth fuelled by
capacity expansions and acquisitions. Vivimed is setting up a green field plant in
Hyderabad, at an investment of ` 40 crore and is undertaking some de-bottlenecking
exercises at its existing Jeedimetla plant. Further the company has acquired Uquifa,
Klar Sehen and Octtantis Nobel in the API and branded formulations space. Aided by
these expansions and recent acquisitions, we expect the revenues to receive a major
boost and grow at a CAGR of 78.8% to ` 569.6 crore over the forecast period (2011-
14).
Pharma - Revenue and EBIDTA Margin
Rs. Crore (%)
600 25
500 20
400
15
300
10
200
100 5
0 -
FY11 FY12E FY13E FY14E
Revenue EBIDTA Margin RHS (%)
Source: Vivimed, Ventura Research
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9. Vivimed Pharmaceutical Product Portfolio
CAPSULES/TABLETS SYRUPS & LIQUIDS SMALL VOLUME
PARENTALS
FLEXASUR CODAREX OTRIVIN
SPASMOCIP PLUS INALGEL NASIVION MOIST
CODARIN VISCODYNE NASIVION
BUTAPROXIVON BROZEDEX CANDBIOTIC EAR
VALENZIA TABLETS CELADRIN DROP
ARACHITOL TABLET MITS CODEINE OTRIVIN NASAL
C PINK TABLET LINCTUS SPRAY
CANDID LOTION TOBROP
CANDID MOUTH
PAINT
MERCK
CRAMS NOVARTIS
RANBAXY
GLENMARK
CIPLA
LUPIN
Source: Vivimed, Ventura Research
 Recent acquisitions to fuel revenue growth
In a strategic move, to enhance presence across the value chain and hasten entry to
the regulated markets (which generally has a 36-48 months penetration time),
Vivimed acquired Uquifa, a 75 year old API and intermediates manufacturing
company. Considering Vivimed’s, strong track record of successful acquisitions, we
expect the company to effectively leverage the acquisition and add value. Besides
Uquifa, Vivimed has also acquired two small formulation companies Klar Sehen Pvt
Ltd & Octtantis Nobel Labs for a consideration of ` 24 crore and ` 5 crore
respectively. These acquisitions would help Vivimed reduce costs by achieving
manufacturing synergies and expand sales and profitability by increasing market and
client penetration. We estimate Vivimed to earn revenues to the tune of ` 352 crore in
FY14 from these acquisitions.
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10. Profile of Major strategic acquisitions
James Robinson Harmet Klar Sehen Pvt Octtantis Nobel Uquifa, Spain &
Acquisition Ltd International Ltd Labs Mexico
Year of
2008 2009 2011 2011 2011
Acquisition
Cost of
USD 21 mn USD 3 mn Rs 24 crore Rs 5 crore USD 55 mn
Acquisition
Stake 100% 100% 100% 60% 100%
Photochromic Dyes Active
Sales and Pharmaceuticals &
and Imaging Ophthalmic Products Pharmaceutical
Distribution Nutraceuticals
Products Chemicals Products
Complements Strong marketing
Direct entry to Foray into booming
Rationale of Niche product Vivimed’s portfolio in field force to help
the developed generic API
Acquisition portfolio. high growth expand distribution
markets. segment.
ophthalmic segment. reach.
Source: Vivimed, Ventura research
 Uquifa- a unique value proposition
Vivimed has acquired it for a consideration of USD 55 million (` 286 crore) funded
through a debt equity mix of 65:35. Vivimed’s equity infusion of USD 20 million is via
an SPV (Vivimed Labs Spain S.L), debt financing of USD 25 million has been
provided by Exim Bank and balance USD 10 million is by the way of deferred
payments.
Benefits of Uquifa acquisition
Source: Vivimed, Ventura Research
 Other two acquisitions in branded formulations to enhance
presence in domestic biz
In addition to Uquifa, Vivimed in its acquisition spree acquired two formulation
companies in India, Klar Sehen Pvt Ltd (KSPL) (100% stake) and Octtantis Nobel
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11. Labs (50% stake) in 2011 for ` 24 crore and ` 5 crore respectively with presence in
manufacturing and marketing of branded formulations.
Benefits KSPL and Octtantis acquisition
Presence in North-
150 MRs East, Bihar & AP Strong
Distribution
Reach
KSPL
Presence in
Octtantis Pharmaceutical
Nobel & Nutraceutical
50 Trade
cGMP compliant
Labs Segment
Marks
manuf acturing f acility
at Kolkata &
Hyderbad
Source: Vivimed, Ventura Research
 Significant entry barriers to ensure limited competition and
sustainability of growth
In the active ingediants market where product quality has precedence over price,
becoming a preferred supplier to global majors is a strenuous and prolonged process.
Vivimed with its quality offering has established strong relationships with global
majors and over a time period has embedded itself within these multinationals and
now is a supplier across a wide range of products.
Timeline of Product Basket Expansion
Unilever
L’oreal
P&G
Source: Vivimed, Ventura Research
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12. Typical time-line to be embedded as a vendor to an MNC is 5-7 years thus raising the
competitive bar. Further, the contracts are long term in nature ensuring stable
revenues for a longer period of time. Considering these huge entry barriers, and
expanding product portfolio of Vivimed, we are very comfortable with regards to
revenue visibility.
Activity Timelines
Sample Quantities 3 to 6 months
Small/Trial Batches 6 to 9 months
Stabilization period 15 to 18 months
Commercial Quantities 6 to 9 Months
Source: Vivimed, Ventura Research
Vivimed’s strong skill set for innovations, research based idea-generation right from
creation of a molecule to partnering with a manufacturer provides the company with a
significant competitive edge.
 KEY CONCERNS
 Mounting debt, a key risk to profitability
Especially in the current high interest environment, Vivimed’s debt by FY14 would be
very high at `515 crore (debt equity ratio of 0.8). Since along with debt, significant
equity dilution has already been done leaving with very little scope for further
expansion of equity. As the cash flows are strong, we forsee no issues with regards
to debt serviceability. However, a sharp deterioration of economic environment & rise
in interest rates can impact adversely.
Debt to Equity Interest Coverage to Debt/EBIDTA
(Rs.Crore) (%) (%)
1400 1.8 7.0 4.0
1200 1.6 6.0 3.5
1.4 3.0
1000 5.0
1.2
2.5
800 1 4.0
0.8 2.0
600 3.0
0.6 1.5
400
0.4 2.0
1.0
200 0.2 1.0 0.5
0 0
0.0 0.0
FY11 FY12E FY12E FY14E
FY11 FY12E FY13E FY14E
Debt Debt to Equity
Interest Coverage Ratio Debt/EBIDTA (RHS)
Source:Vivimed, Ventura Research Source: Vivimed, Ventura Research
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13.  Foreign Exchange Risk
Vivimed derives ~ 44% (FY11) of its revenue from the export markets which are set
to rise further considering the recent acquisition abroad. Any adverse movement in
the USD/INR in the wake of current global economic turmoil might affect company’s
revenue and profitability adversely.
 Financial performance
Vivimed Ltd has witnessed a steady 59.1% yoy growth in its top line to ` 168.0 crore
in Q3FY12 as against ` 105.6 crore in Q3FY11 led by consolidation of the recently
acquired pharmaceutical companies. The EBITDA margins stood at healthy 19.8%.
While, the PAT margins stood at 9.5%.
We believe that Vivimed would register a strong growth in revenues in quarters to
come led by strong product portfolio and recent acquisitions. In our view, the recent
acquisitions would help the company maintain margins and foster a strong growth
thus adding significant value. Further, the expansions would ensure growth in the
current portfolio base ensuring a double benefit with mounting debt being the only
concern.
Quarterly Financial Performance
Particulars Q3FY12 Q3FY11 FY11 FY10
Net Sales 168.0 105.6 416.9 343.4
Growth % 59.1 21.4
Total Expenditure 136.4 81.4 331.9 279.1
EBITDA 33.2 24.2 85.0 64.3
EBITDA Margin % 19.8 22.9 20.3 18.7
Depreciation 6.9 1.5 9.1 8.7
EBIT (EX OI) 26.3 22.7 75.9 55.6
Other Income 0.0 0.0 0.01 6.8
EBIT 26.3 22.7 75.9 62.4
Margin % 15.7 21.5 18.2 18.1
Interest 5.9 6.0 20.6 22.8
Exceptional items 0.0 0 0.0 0.0
PBT 20.4 16.7 55.3 39.6
Margin % 12.1 15.8 13.2 11.5
Provision for Tax 4.4 3.4 6.4 8.6
PAT 16.0 13.3 48.8 31.0
PAT Margin (%) 9.5 12.6 11.7 9.0
Source: Vivimed, Ventura Research
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14.  Financial outlook
Aided by strategic acquisitions and continuous expansions, we expect Vivimed
revenues to grow at a CAGR of 39.9 % to ` 1139.9 crore over the forecast period of
FY11-14. In addition, we haven’t factored additional revenues coming in from the
launch of new products which should also help boost revenues and profitability. We
expect Vivimed to maintain ~18% EBITDA margin (excl OI) over the forecasted
period amidst volatile raw material prices. Consequently, we expect the PAT to grow
at a CAGR of 31.7% to ` 111.6 crore in FY14E as compared to ` 48.8 crore in FY11.
Revenue and profitability trend
Rs. Crore (%)
1200 25%
1000 20%
800
15%
600
10%
400
200 5%
0 0%
FY10 FY11 FY12E FY13E FY14E
Revenue EBIDTA Margin(%) PAT Margin(%)
Source: Vivimed, Ventura Research
 Valuation
At the CMP of ` 343, Vivimed is trading at 6.0x and 5.5x its estimated earnings for
FY13 and FY14. We initiate coverage on Vivimed Labs Ltd as a BUY with a Price
Objective of ` 468 (7.5x FY14 EPS) over a period of 24 months.
We have valued the stock at 36%% premium to its historical average valuation of
5.5x considering the robust product portfolio and the recent acquisitions. However,
post the integration of the acquisitions, we expect Vivimed to be re-rated considering
its enhanced global presence and broadened product portfolio. Vivimed’s earnings
are expected to grow at a 31.7% CAGR over the forecast period FY11-14 which is far
ahead of the sector’s growth.
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15. P/E
800
700
600
500
400
300
200
100
0
Apr-07 Apr-09 Apr-11 Apr-13
CMP 3X 4X 5X 6X 7X
P/Adj.BV
800
700
600
500
400
300
200
100
0
Apr-07 Apr-09 Apr-11 Apr-13
CMP 0.8X 1X 1.2X 1.4X 1.6X
EV/EBIDTA
1600
1400
1200
1000
800
600
400
200
0
Apr-07 Apr-09 Apr-11 Apr-13
EV 3.45X 4.45X 5.45X 6.45X 7.45X
Source: Ventura Research
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16. Financials & Projections
Y/E March, Fig in Rs. Cr FY 2011 FY 2012e FY 2013e FY 2014e Y/E March, Fig in Rs. Cr FY 2011 FY 2012e FY 2013e FY 2014e
Profit & Loss Statement Per Share Data (Rs)
Net Sales 416.0 636.2 982.1 1139.9 EPS 48.0 42.3 57.1 62.4
% Chg. 52.9 54.4 16.1 Cash EPS 53.9 73.5 106.8 127.8
Total Expenditure 331.9 509.7 805.3 934.5 DPS 2.0 2.0 2.0 2.0
% Chg. 53.6 58.0 16.0 Book Value 193.5 326.3 337.8 363.2
EBDITA 84.1 126.5 176.7 205.5 Capital, Liquidity, Returns Ratio
EBDITA Margin % 20.2 19.9 18.0 18.0 Debt / Equity (x) 1.6 0.9 0.9 0.8
Other Income 0.9 0.9 1.1 1.2 Current Ratio (x) 4.6 2.6 3.6 3.5
PBDIT 85.0 127.5 177.8 206.7 ROE (%) 24.8 13.0 16.9 17.2
Depreciation 9.1 26.1 27.2 29.0 ROCE (%) 16.4 14.8 16.6 17.5
Interest 20.6 26.8 34.7 36.5 Dividend Yield (%) 0.6 0.6 0.6 0.6
PBT 55.3 74.5 116.0 141.3 Valuation Ratio (x)
Tax Provisions 6.4 15.7 24.4 29.7 P/E 7.1 8.1 6.0 5.5
Reported PAT 48.8 58.9 91.6 111.6 P/BV 1.8 1.1 1.0 0.9
PAT Margin (%) 11.7 9.3 9.3 9.8 EV/Sales 2.4 1.6 1.0 0.9
EV/EBIDTA 11.9 7.9 5.7 4.9
Raw Materials / Sales (%) 58.1 59.0 61.0 61.0 Efficiency Ratio (x)
Manpower cost / Sales (%) 4.8 5.0 5.0 5.0 Inventory (days) 74.1 75.0 75.0 75.0
Other Exp / Sales (%) 7.4 7.3 7.3 7.3 Debtors (days) 111.9 110.0 110.0 110.0
Tax Rate (%) 11.6 21.0 21.0 21.0 Creditors (days) 41.0 45.0 45.0 45.0
Balance Sheet Cash Flow statement
Share Capital 10.2 140.9 76.1 17.9 Profit After Tax 48.8 58.9 91.6 111.6
Reserves & Surplus 186.5 313.7 466.4 632.0 Depreciation 9.1 26.1 27.2 29.0
Minority Interest & Others 0.0 0.0 0.0 0.0 Working Capital Changes -106.2 -25.3 -170.6 -69.0
Total Loans 307.7 391.7 511.8 514.5 Others 0.5 1.2 0.0 0.0
Deferred Tax Liability 14.7 14.7 14.7 14.7 Operating Cash Flow -47.8 60.9 -51.8 71.6
Total Liabilities 519.1 861.0 1069.0 1179.0 Capital Expenditure -28.7 -35.8 -55.2 -84.7
Goodwill 84.6 32.6 32.6 32.6 Change in Investment 9.4 -315.0 0.0 0.0
Gross Block 223.3 791.8 823.0 877.7 Cash Flow from Investing -19.3 -350.8 -55.2 -84.7
Less: Acc. Depreciation 43.5 251.7 278.8 307.8 Proceeds from equity issue 1.9 201.2 0.0 0.0
Net Block 179.7 540.1 544.2 569.9 Inc/ Dec in Debt 72.4 84.0 120.1 2.7
Capital Work in Progress 1.7 18.0 42.0 72.0 Dividend and DDT -1.7 -3.3 -3.8 -4.2
Investments 0.0 0.0 0.0 0.0 Cash Flow from Financing 72.5 281.9 116.3 -1.5
Net Current Assets 246.4 263.6 443.5 497.8 Net Change in Cash 5.5 -8.0 9.2 -14.6
Misc Expenses 6.7 6.7 6.7 6.7 Opening Cash Balance 5.6 11.1 3.1 12.3
Total Assets 519.1 861.0 1069.0 1179.0 Closing Cash Balance 11.1 3.1 12.3 -2.3
Ventura Securities Limited
Corporate Office: C-112/116, Bldg No. 1, Kailash Industrial Complex, Park Site, Vikhroli (W), Mumbai – 400079
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