Equity Watch

FDC is certain safe bet in uncertain times

FDC is among India’s leading Pharma company,and was set up in 1936.Company operates world class manufacturing and R & D facilities at multi locations ( Aurangabad, Jogeshwai,Roha,Sinnar in Maharashtra; Verna in Goa and Baddi in Himachal)  in India and exports to 50 countries including US, Japan, Europe and many more.

USFDA,WHO-GMP and UNICEF approved  FDC has 70% of the Oral Rehydration Salt called Electral market in India.It makes formulations and Active Pharma Ingredients API in the Pharmaceutical space.It also has presence in various therapeutic segments such as anti-infectives, dermatologicals,respiratory and haematinics.FDC has launched new products and line extensions of its existing products like Zifi for treating lower respiratory tract infections.

For the quarter ended Sept.2008, sales grew by 15% to Rs. 157 crores comapred to Q3FY07.PAT grew by 44% to Rs. 26 crores.

See the Financials below:

Scrip Code : 531599      Company : FDC Ltd
Type Un-Audited Un-Audited Un-Audited Un-Audited Un-Audited Audited
Period Ending 30-Sep-08 30-Jun-08 31-Mar-08 31-Dec-07 30-Sep-07 31-Mar-08
No. of Months 3 3 3 3 3 12
Description Amount(Rs. million)
Net Sales / Interest Earned / Operating Income 1,574.85 1,592.92 888.35 1,215.00 1,358.40 4,896.67
Other Income 26.71 38.81 33.17 88.10 56.30 191.42
Total Income 1,601.56 1,631.73 921.52 1,303.10 1,414.70 5,088.08
Expenditure -1,251.59 -1,161.99 -856.77 -1,021.30 -1,169.40 -4,182.12
Interest -3.72 -4.09 -5.38 -2.50 -2.50 -14.81
Profit Before Depreciation and Tax 346.25 465.65 59.37 279.30 242.80 891.15
Depreciation -28.71 -27.46 -32.29 -26.80 -26.20 -111.51
Profit before Tax 317.54 438.19 27.08 252.50 216.60 779.65
Tax -55.00 -91.20 10.91 -41.00 -34.80 -122.09
Net Profit 262.54 346.99 37.99 211.50 181.80 657.56
Equity Capital 191.46 191.46 191.46 191.50 191.50 191.46
Basic And Diluted EPS after Extraordinary item 1.37 1.81 0.20 1.10 0.95 3.43
Nos. of Shares – Public 68,956,446.00 68,956,446.00 68,956,446.00 68,956,446.00 68,956,446.00
Percent of Shares-Public 36.02 36.02 36.02 36.02 36.02
Operating Profit Margin 22.22 29.49 7.29 23.19 18.06 18.50
Net Profit Margin 16.67 21.78 4.28 17.41 13.38 13.43
Cash EPS 1.52 1.96 0.37 1.24 1.09 4.02
Notes Notes Notes Notes Notes Notes
Detailed Detailed Detailed Detailed Detailed Detailed

reproduced from bseindia

Note : 1. The results displayed here are as furnished by the company at the relevant point of time

Latest quarter EPS stands at Rs. 1.37 for Re.1 FV share.FDC is buying back its share at a price not exceeding Rs.40 from the market.This will help support its share price in these uncertain times.After the completion of buyback its equity will reduce to Rs. 17 crores  from the present Rs. 19 crores ,thus increasing the EPS from Rs. 1.37 to 1.5. At CMP of Rs. 30 the share is available at P/E of just about 5.

Buy at CMP is recommended for long term

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above informationŠ

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