Knoll Pharma: Consolidating operations - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Knoll Pharma: Consolidating operations

Mar 4, 2002

Knoll Pharma has declared a 33% drop in net profits for the year ended November'01. The company has changed its accounting year from December to November year ending. Hence the latest results are not strictly comparable as this year of the company was for a period of 11 months.

(Rs m)FY01FY02% Change
Sales 3,333 3,246 -2.6%
Other Income 310 166 -46.5%
Expenditure 2,860 2,720 -4.9%
Operating Profit (EBDIT) 473 526 11.1%
Operating Profit Margin (%)14.2%16.2%14.1%
Interest 15 1 -91.8%
Depreciation 53 45 -15.9%
Profit before Tax 715 646 -9.7%
Extraordinary Income 132  -
Tax 125 159 27.4%
Profit after Tax/(Loss) 722 487 -32.6%
Net profit margin (%)21.7%15.0% 
No. of Shares (eoy) (m) 16 16  
Diluted Earnings per share* 44.6 30.1 
P/E (at current price) 10.2 
(*- annualised)

On an annualised basis however, sales have registered a growth of more than 6%. Operating margins showed a good improvement of 200 basis points. The jump in operating margins was on the back of upward revision of four formulations of Insulin injection in March. Insulin Vial prices have increased by 22% - 25% since then. Insulin is the biggest revenue churner for Knoll where the company has a market share of close to 60%. Other income was on account of sale of mutual fund units of Rs 58 m and dividend received from wholly owned subsidiary.

Knoll Pharma seems to be in a consolidation mood. The company is in the process of taking shareholder permission to sell/divest its manufacturing unit at Pune and for the buyback of its shares. It plans to sell its plant as a going concern. It is proposing buyback of shares at a maximum price of Rs 350 per share. The markets however, seem to have sensed the proposal ahead of time, with the stock price appreciating more than 30% in last two months.

Knoll Pharma has also proposed 100% dividend i.e. Rs 10 per share. The stock currently trades (cum dividend) at Rs 308. Considering, the dividend the stock still trades at 15% discount to the buyback price proposed by the company.The buyback however, is dependent on shareholder's approval.

Equitymaster requests your view! Post a comment on "Knoll Pharma: Consolidating operations". Click here!

  

More Views on News

ABBOTT INDIA Announces Quarterly Results (3QFY21); Net Profit Down 5.1% (Quarterly Result Update)

Feb 11, 2021 | Updated on Feb 11, 2021

For the quarter ended December 2020, ABBOTT INDIA has posted a net profit of Rs 2 bn (down 5.1% YoY). Sales on the other hand came in at Rs 11 bn (up 1.6% YoY). Read on for a complete analysis of ABBOTT INDIA's quarterly results.

ABBOTT INDIA Announces Quarterly Results (1QFY21); Net Profit Up 54.2% (Quarterly Result Update)

Aug 18, 2020 | Updated on Aug 18, 2020

For the quarter ended June 2020, ABBOTT INDIA has posted a net profit of Rs 2 bn (up 54.2% YoY). Sales on the other hand came in at Rs 11 bn (up 6.5% YoY). Read on for a complete analysis of ABBOTT INDIA's quarterly results.

More Views on News

Most Popular

A Critical Update on the Market (Fast Profits Daily)

Mar 30, 2021

In this video, I'll tell you why I am recommending caution in the market at this time.

My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)

Mar 31, 2021

A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.

My Stock Trading Strategy (Fast Profits Daily)

Mar 31, 2021

In this video I'll show you exactly how I go about picking stocks for trading.

What You Need to Find Hundred Baggers (Profit Hunter)

Mar 30, 2021

100 baggers of the last decade share this common trait. Here's how to use it to nail future multibaggers.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

ABBOTT INDIA SHARE PRICE


Apr 12, 2021 09:36 AM

TRACK ABBOTT INDIA

  • Track your investment in ABBOTT INDIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

ABBOTT INDIA - TEVA PHARMA COMPARISON

COMPARE ABBOTT INDIA WITH

MARKET STATS