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Suven Pharma’s total revenues grew 40% YoY to Rs.364 crore with the Formulations and CRAMS (pharma) reporting stellar growth this quarter on a YoY basis. Specialty chemicals reported growth of 24% in Q4FY22 (YoY) while registering a 51% growth in FY22. As result, EBITDA grew by 68% YoY despite elevated employee cost and raw material expenses.

There has been an improvement in net debt(FY22: Rs4.1bn vs. Rs7.7bn in FY21) and it is expected to come down further by FY23-end. We have marginally raised our Mar’23 TP to Rs500 (Rs490 earlier) to factor in higher cash on books. We believe the merged entity can cater to a larger EPC market.​

For the quarter ended 31-03-2022, the company has reported a Consolidated Total Income of Rs 1355.34 Crore, up 1.34 % from last quarter Total Income of Rs 1337.45 Crore and up 5.13 % from last year same quarter Total Income of Rs 1289.20 Crore. Company has reported net profit after tax of Rs 38.67 Crore in latest quarter.

The fund house also booked profits in ITC and sold 1.6 crore shares of the FMCG company. The stock has been an outperformer for a while even as the overall market has tanked. It also remains an overwhelming favourite among analysts.

The issue, which opened for subscription on Friday, May 20, will close for bidding on Tuesday, May 24. The company is selling its shares in a lot size of 58 equity shares in a price range of Rs 243-256.

The Relative Strength Index of the stock stood at 52.65 on Friday.

“Companies like Infosys, TCS, HCL Tech are looking compelling from an investment perspective and given the cash flows that they have, the balance sheet strength that they have and the kind of buyback that they have announced, the risk reward is turning far more favourable. We would be using this dip as some sort of accumulation opportunity for investors.”

A total of 13,702 shares changed hands on the counter till 01:54PM (IST)

“In addition to financial and legal due diligence, a lot of investors have started now doing intellectual due diligence of the founders on integrity and what they are building. So it is time for behaviourial change to happen on the VCs side and which is now happening and we will see that happen.”

Promoters held 74.99 per cent stake in the company as of 31-Mar-2022, while FII and DII ownership stood at 8.83 per cent and 6.25 per cent, respectively.