Buyback Guidance by Paresh Gordhandas , Research Analyst :
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Promoters’ holding in the company : 74.88%
Revenue from operations Rs in Mn (2122)152,652 (2021) 144,035 YoY growth :6.0%
Net Profit Rs in Mn (2122) 22,988 (2021) 20,581 YoY growth :6.0% 11.7%
• Revenue from operations at Rs. 152,652 mn, up 6%.
• R&D investments for the year were Rs. 10,406 mn (6.8% of revenues).
• Reported EBITDA for the year was Rs. 33,407 mn; Reported EBITDA margin for the
year stood at 21.9%. Adjusted for one-time inventory provision (Note: 1 above),
EBITDA margin stood at 23.1% of revenues.
• Reported net profit for the year was Rs. 44,873 mn, up 110%. Adjusted for one-time
inventory provision, exceptional and non-recurring items as well as profit from
discontinued operations, Net Profit for the year was Rs. 22,988 mn, up 12%.
• Capex (organic) for the year was Rs. 11,218 mn.
• Net Debt to Equity ratio as on 31st March, 2022 was ~ nil while Net Debt to EBITDA
stood at -0.02x at the end of March, 2022. Net Cash (negative Net Debt) as on March
31, 2022 was Rs. 570 mn.
Share Price Range :
52 Week high of Rs. 668.90
52 Week low of Rs. 319
current price Rs. 366.35 ( at the close of 25 May 2022)
Book Value of the Share Rs. 186.12
Price to Book Value Ratio : 1.97
Earnings per Share 2021-22 Rs. 43.83
Buyback price to Book Value Ratio : 14.83
Conclusion : The Pharma shares are showing weak trend since last few months. and Zydus life also showed weak trend. However the scrip has entered short term uptrend and by the time the Buyback offer opens the scrip may show decent gains from the current price of Rs. 366. However the market price is not expected to cross the Buyback offer price of Rs. 650, till the offer closes.
The scrip has very strong future for the long term investors. However considering near-future trend, buyback offer may be accepted.