Suven Pharmaceuticals Ltd., incorporated in the year 2018, is a Small Cap company (having a market cap of Rs 12075.29 Crore) operating in Pharmaceuticals sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 262.46 Crore, down -6.19 % from last quarter Total Income of Rs 279.78 Crore and up 38.06 % from last year same quarter Total Income of Rs 190.10 Crore. Company reported net profit after tax of Rs 64.45 Crore in latest quarter.
Investment Rationale
Suven’s topline performance was in-line with I-direct estimates whereas profitability was lower due to lower-than-expected gross margins. Going ahead, the company hopes to achieve 10-15% growth in FY22 based on order book position. It plans to invest Rs 600 crore for modernisation, technology upgradation, which likely stems from the need to cater to the changed priorities and requirements of its clients, the benefits of which may be visible in the long run. Cautious guidance notwithstanding, the brokerage continues to emphasise on the strong execution capability and focused approach without the burden of success/failure of the innovative pipeline.
Promoter/FII Holdings
Promoters held 60 per cent stake in the company as of June 30, 2020, while FIIs held 3.6 per cent, DIIs 4.6 per cent and public and others 31.8 per cent.
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