Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Knoll Pharma: Consolidating operations - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Mar 4, 2002

    Knoll Pharma: Consolidating operations

    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) FY01 FY02 % 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

    Sun Pharma: Bottomline Slips into the Red Amidst Challenging Environment (Quarterly Results Update - Detailed)

    Aug 14, 2017

    A challenging environment and one-time expense pushes Sun Pharma into a loss in the first quarter.

    Lupin: Bigger Challenges or Bigger Margin of Safety? (Quarterly Results Update - Detailed)

    Aug 14, 2017

    GST impact coupled with price erosion in US leads to lower profits for the quarter.

    Dr Reddy's: US Pressure Continues to Haunt (Quarterly Results Update - Detailed)

    Aug 8, 2017

    Profits plunge due to higher raw material costs.

    Biocon: Lower Licensing Income Leads to Muted Growth for the Quarter (Quarterly Results Update - Detailed)

    Jun 23, 2017

    Net Profit lower due to exceptional items in the previous year.

    Sun Pharma: Price Erosion in US Impacts Growth (Quarterly Results Update - Detailed)

    May 30, 2017

    US markets decline while other geographies grow in the quarter.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 (Close)


    • 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


    Compare Company With Charts