SMS Pharma (Listed)

Location: Hyderabad

The company is spread across different therapeutic segments in addition to

diversifying in to Nutraceuticals, Bio and Inorganic products and mostly recently in
to cytotoxic formulations.

The category-wise share of products for the year ended March 2009 is as follows:

Product % of Sales (Rs.

Category STO Cr)
Intermediates 55.37 149.74
Bulk Drugs 44.63 120.68
Source: Capitaline

They are mainly focused on the following types of APIs:

• Anti Cancer

• Anti Diabetic

• Anti Hypertensive

• Anti Infectives

• Anti Ulcer

Highlights:

• The company’s production focus is steadily shifting towards the lifestyle

diseases segments which are expected to be on the rise in the next 4-5
years.

• 5 manufacturing facilities in and around Hyderabad

• Dedicated oncology facility being developed in Vizag, with capabilities to

produce both APIs and formulations

• Multi-purpose API facility being developed in Vizag to specifically cater to the

CRAMS business

• The company has acquired 17 US DMFs

Key Financials:

Rs. Crore 2009 2008 2007 2006 2005

240.9 207.1 165.9 120.3 104.7
Net Sales
5 9 8 3 8
PAT 6.3 27.16 20.97 8.51 8.44
Cash Flow From Operating
20.91 5.21 10.81 5.94 7.19
Activities
-
Cash Flow From Investing Activities -65.95 101.6 -22.43 -6.21 -18.6
3
101.6
Cash Flow From Financing Activities 42.04 24.75 0.99 8.89
7

Rate of Growth (%)

102.3
ROG-Capital Employed (%) 16.5 22.46 9.17 19.89
5
ROG-Total Assets (%) 15.8 15.97 81.75 7.77 19.48

Key Ratios
Debt-Equity Ratio 0.54 0.39 0.54 1.24 1.29
Long Term Debt-Equity Ratio 0.32 0.22 0.33 0.79 0.85
Current Ratio 1.76 2.26 2.08 1.32 1.26

Turnover Ratios
Fixed Assets Ratio 2.25 2.41 2.16 1.55 1.54
Inventory Ratio 3.99 4.56 5.54 5.1 5.42
Debtors Ratio 5.35 4.46 3.72 3.02 3.19
Interest Cover Ratio 1.83 5.71 5.58 2.97 3.63
ROCE (%) 5.73 15.14 22.72 18.08 16.91
RONW (%) 3 13.89 17.59 16.42 19.01
Source:
Capitaline
 Neuland Laboratories (Listed)
Location: Hyderabad

Neuland’s API products include:

• Anti-Asthmatics

• Anti-infectives

• Drugs for Cardiovascular diseases

• CNS (including Anti-depressants, Anti- Parkinsons and Anti- Alzheimers)

• Corticosteroids

• Anti-Ulcerants

• Anti-Fungals.

The category-wise share of products for the year ended March 2009 is as follows:

Product Category % of STO Sales

Bulk Drugs 85.61 267.12
Intermediates 10.86 33.9
Others 1.83 5.7
Excise Duty 1.7 5.31
Source: Capitaline

Highlights:

• The company’s product portfolio includes drugs for segments like CVS and
CNS which are on the rise in developed economies of the world and are
expected to clock high growth rate in the next few years

• Over 35 Active USDMF's and 370 Drug Master Files world wide

• 2 manufacturing units, both of which are USFDA and WHO GMP certified

• Capabilities for custom peptide synthesis and contract research

Key Financials:

Rs. Crore 2009 2008 2007 2006 2005

306.7 217.6 202.3 163.0 153.0
Net Sales
3 7 6 7 1
PAT 11.79 11.35 9.04 6.24 4.89
Cash Flow From Operating
21.61 11.94 -1.38 11.91 15.26
Activities
Cash Flow From Investing Activities -74.19 -59.1 -28.98 -6.5 -16.78
Cash Flow From Financing Activities 53.99 47.98 31.95 -4.04 1.75

Rate of Growth (%)

ROG-Capital Employed (%) 36.25 47.93 48.28 6 12.91
ROG-Total Assets (%) 33.57 46.68 36.21 14.5 8.79

Key Ratios
Debt-Equity Ratio 2.37 1.69 1.1 0.85 0.9
Long Term Debt-Equity Ratio 1.47 1.03 0.62 0.36 0.34
Current Ratio 1.1 1.24 1.33 1.24 1.21

Turnover Ratios
Fixed Assets Ratio 1.99 2.28 2.57 2.26 2.34
Inventory Ratio 4.97 4.32 4.75 4.31 3.98
Debtors Ratio 5.09 4.8 5.99 7.01 7.77
Interest Cover Ratio 2 2.07 2.32 2.44 2.1
ROCE (%) 12.1 12.22 15.43 16.67 18.14
RONW (%) 16.71 18.12 16.64 12.98 11.06
Source:
Capitaline
 Parabolic Drugs (Unlisted)
Location: Chandigarh

Parabolic Drugs has a presence in the API & API Intermediates segment offering a
product basket of Semi Synthetic Penicillin’s (oral & Sterile) and Cephalosporin’s
(oral) and Cephalosporin Sterile.

The category-wise share of products for the year ended March 2009 is as follows:

Product Category % of STO Sales

Semi Synthetic Penicillin 40.96 176.2
Cephlosplorins 32.69 140.65
6 Amino Pencillinic Acid 14.06 60.51
Excise Duty 8.21 35.3
By products 3.95 17.01
Job Work 0.13 0.55
Source:
Capitaline

Highlights:

• Supplier for companies like Ranbaxy, Cipla, Alkem labs and Aristo Pharma

• Export presence in SE Asia, North America, Latin America, Middle East and
some regions of Africa. The company is aggressively targeting the Middle
East markets

• New facility being set up in Barwala, Punjab to focus on CRAMS business

• Synthetic Penicillin and Cephalosporins are significant therapeutic segments

in the Indian Pharma market and have displayed significant growth rates
(~13%) in the last 3 years. Cephalosporins held the largest market share with
7.8% in 2008-09 as per CRISIL research
 • BTS India Private Equity Fund, based in Mauritius has invested USD 7 million
in the company in 2008 by way of private placement of shares

Key Financials:

Rs. Crore 2009 2008 2007 2006 2005

394.9 273.2 149.3
Net Sales 87.28 50.8
1 9 4
PAT 23.93 29.67 13.59 8.22 3.22
Cash Flow From Operating
-40.37 -27.24 -4.89 -7.92 -1.88
Activities
Cash Flow From Investing Activities -56.18 -50.14 -26.43 -12.67 -5.54
Cash Flow From Financing Activities 102.7 81.66 31.43 21.08 9.19

Rate of Growth (%)

106.5
ROG-Capital Employed (%) 62.94 106.7 78.82 81.28
9
ROG-Total Assets (%) 71.93 98.79 96.12 66.18 92.66

Key Ratios
Debt-Equity Ratio 2.07 1.83 1.61 1.97 2.81
Long Term Debt-Equity Ratio 1.43 1.38 1.09 1.13 1.08
Current Ratio 1.85 1.99 1.8 1.62 1.26

Turnover Ratios
Fixed Assets Ratio 4.7 5.26 6.49 7.41 6.71
Inventory Ratio 2.97 3.81 3.91 4.28 4.96
Debtors Ratio 3.66 4.48 5.07 6.28 6.9
Interest Cover Ratio 2.06 3.92 3.75 3.26 3.15
ROCE (%) 19.7 28.84 27.94 30.81 22.98
RONW (%) 26.75 51.28 45.2 50.98 50.55
 Source:
Capitaline

USV Limited (Unlisted)

The company’s product offering includes Active Pharmaceutical Ingredients (APIs),
Peptides, Biosimilars, Injectables and Ophthalmics and Solid Orals. They have a
presence in 57 countries globally. In India, they are the leaders in the oral anti-
diabetic market.

Their API products cover the following therapeutic segments:

• Anti-diabetic drugs

• CNS Drugs

• Oncology

• CVS

• Anti-malarial

• Nephrology

• Immunomodulator

The category-wise share of products for the year ended March 2007 is as follows:

Product Category % of STO Sales

Tablets & Capsules 54.96 354.42
Bulk Drugs & Intermediates 29.93 192.99
Liquids 9.84 63.48
Creams & Ointments 4.1 26.46
Product Dossiers 0.72 4.66
Powder 0.43 2.75
Devices 0.01 0.09
Source: Capitaline
Highlights:

• Diversified portfolio with presence in therapeutic segments with expected

high growth rates

• Capabilities of manufacturing small molecule APIs

• Substantial R&D capabilities; capability of fermentation which is not easily

available in India; facilities for custom peptide synthesis

• Presence in upcoming segment of biologics

• 4 manufacturing plants all of which are cGMP certified

• Portfolio of 83 patent submissions for APIs, Finished Dosages and Biosimilars.

Of these 30 patents have been granted and 53 submissions are pending
approval

Key Financials:

Rs. Crore 2009 2008 2007 2006 2005

837.1 613.2 539.1 476.0
Net Sales 672.8
4 9 1 1
172.6 146.2 140.4 111.6
PAT 137.2
2 6 3 1
Cash Flow From Operating 137.5 136.0 137.1
0 0
Activities 1 4 4
-
Cash Flow From Investing Activities 0 0 -86.9 -132.8 131.3
6
Cash Flow From Financing Activities 0 0 -22.23 -11.58 -12.82

Rate of Growth (%)

ROG-Capital Employed (%) 2.62 19.95 21.45 29.82 29.65
ROG-Total Assets (%) 18.35 20.76 21.55 29.44 30.11

Key Ratios
Debt-Equity Ratio 0.01 0.01 0.01 0.01 0.02
Long Term Debt-Equity Ratio 0.01 0.01 0.01 0.01 0.02
Current Ratio 2.02 2.19 2.25 2.22 2.69
 Turnover Ratios
Fixed Assets Ratio 2.04 1.84 2 2.21 2.55
Inventory Ratio 8.14 7.47 7.9 7.91 8.66
Debtors Ratio 9.3 8.83 9.73 11.95 10.04
366.1 560.1 1146. 643.1 1144.
Interest Cover Ratio
9 9 71 6 54
ROCE (%) 18.9 20.07 25.69 32.19 38.65
RONW (%) 16.98 17.24 22.67 27.78 29.44
Source:
Capitaline