Multi Baggers

Hem Securities

5.30 AM Jan 1st 1970

Suven Life Sci

BSE ID : 530239 NSE ID : SUVEN

RECOMMENDED PRICE 72.20

PEAK FROM RECO 311.92 332.02%

CURRENT PRICE 112.60 Resource id #11

Multibagger follow-up: We had initiated buying recommendation in Suven Life Sciences on 14th October, 2013 at Rs 46.35 for target price of Rs 60, which was achieved on 6th November 2013. We now rate the stock as ACCUMULATE with revised target of Rs 90 for long term investment horizon.

Suven Life Sciences

In our report dated October 12, 2013; we have initiated buying recommendation in Suven Life Sciences Ltd. at Rs.46.35 for the target price of Rs.60 (an appreciation of ~30 percent) which was achieved on 6th November 2013. The stock has made a high of Rs.83.40 on November 12, 2013. We now rate the stock as ACCUMULATE with revised target of Rs 90 for long term investment horizon.

Suven Life Sciences has registered excellent financials for the recent quarter ended September 2013. A robust top-line growth of ~201 percent was witnessed at Rs.151.41 crore as against Rs.50.26 crores clocked in same period last year. Operating profit for Q2FY14 jumped manifold at Rs.71.41 crore vis-à-vis profit of Rs.11.39 crore for corresponding quarter ended September 2012. Net profits skyrocketed to Rs.45.55 crore for the quarter ended September 2013 compared to Rs.6.49 crore in Q2FY13; registering growth of 601.91 percent.

Operating profit margins of the company in the quarter stood at 47.16 percent vis-à-vis 22.66 percent. Net Profit margin was at 30.08 percent as compared to 12.91 percent in the like period previous year. EPS for the quarter was at Rs.3.90 as against Rs.0.56 y-o-y.

Conclusion

Suven has come out with robust numbers for the quarter ended September 2013 with growth driven by three molecules supply to innovators. After analyzing financials of quarter ended Septmerb2013; we here upgrade our previous estimate as the company has surpassed our estimates easily. Therefore, we upgrade our FY14 and FY15 estimates. Accordingly, EPS for FY14 is estimated at Rs.9.70 and for FY15 at Rs.10.16 in place of Rs.4.78 and Rs.6.63 previously estimated.

So, considering its robust fundamentals, strong product pipeline, firm CRAMS business and increasing research and positive management outlook, company's growth prospects looks promising ahead. We initiate a 'ACCUMULATE' on the stock with a target price of Rs.90 appreciation of about 25 percent from current level) with the LONG investment horizon.

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Disclaimer & Disclosure: This document is prepared for our clients only, on the basis of publicly available information and other sources believed to be reliable. Whilst we are not soliciting any action based on this information, all care has been taken to ensure that the facts are accurate, fair and reasonable. This information is not intended as an offer or solicitation for the purchase or sell of any financial instrument and at any point should not be considered as an investment advise. Reader is requested to rely on his own decision and may take independent professional advise before investing. Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited, Directors and any of its employees shall not be responsible for the content. The person accessing this information specifically agrees to exempt Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and further agrees to hold Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The companies and its affiliates, officers, directors, and employees, including persons involved in the preparation or issuance of this material may from time to time, have long or short positions in, and buy or sell the securities there of, company (ies) mentioned here in and the same have acted upon or used the information prior to, or immediately following the publication.

SuvenLifeScience_RevisedMultibagger_HemSec.pdf