Knoll Pharma: Better days ahead - 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: Better days ahead

Apr 30, 2001

Knoll Pharmaceuticals, (formerly Indian subsidiary of Knoll AG) has declared a drop in net profit for 1QFY02 by 23%. Knoll Pharma is the leading player in the domestic insulin, anti-diabetic, pain control, antacid market. The drop in net profit was in line with our expectations following a cut in Ibuprofen prices by NPPA in January this year. Ibuprofen is a bulk drug which is used in pain management segment. As Knoll Pharma is a market leader in Ibuprofen market, the price cut had a severe impact on the company's financials.

(Rs m) 1QFY01 1QFY02 % Change
Sales 731 813 11.2%
Other Income 37 25 -32.4%
Expenditure 608 701 15.3%
Operating Profit (EBDIT) 123 112 -8.9%
Operating Profit Margin (%) 16.8% 13.8% -18.1%
Interest 1 1 0.0%
Depreciation 12 11 -8.3%
Profit before Tax 147 125 -15.0%
Extraordinary Income     -
Tax 28 33 17.9%
Profit after Tax/(Loss) 119 92 -22.7%
Net profit margin (%) 16.3% 11.3%  
No. of Shares (eoy) (m) 16 16  
Diluted Earnings per share* 29.4 22.7  
P/E (at current price) 10.2 13.3  
(*- annualised)      

But there's some good news on the cards also. In March, NPPA did an upward revision of four formulations of Insulin injection. The insulin vial prices have been increased in the range of 22-25%. Insulin is the biggest revenue churner for Knoll where the company has a market share of close to 60%. However, since the price revisions become effective only after 15 days from the notification, the impact will only be felt in the coming quarter.

The stock is currently trading at a P/e multiple of 11 times our projected earnings for FY02. Meanwhile, Abbot Labs has made an open offer at Rs 328 per share to the shareholders of Knoll Pharma covering 20% of the company's equity. This follows Abbot's acquisition of Lupharma UK Holding One Ltd. which in turn holds a 51% stake in Knoll Pharmaceuticals.

Though the prospects of the company look bright in light of recent price revision of Insulin as also further price revisions expected in the coming months, the open offer price (which is 9% above the current market price) seems to be an impediment for the stock performance in the near term.

Equitymaster requests your view! Post a comment on "Knoll Pharma: Better days ahead". Click here!

  

More Views on News

THYROCARE TECHNOLOGIES at All Time High; BSE HEALTHCARE Index Down 1.4% (Market Updates)

Jun 17, 2021 | Updated on Jun 17, 2021

THYROCARE TECHNOLOGIES share price has hit an all time high at Rs 1,369 (down 0.1%). The BSE HEALTHCARE Index is down by 1.4%. Among the top gainers in the BSE HEALTHCARE Index today are THYROCARE TECHNOLOGIES (down 0.5%) and ABBOTT INDIA (up 0.5%). The top losers include J.B.CHEMICALS (down 0.1%) and THYROCARE TECHNOLOGIES (down 0.1%).

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.

Points to Keep in Mind Before Subscribing to Krishna Institute of Medical Sciences' IPO (Views On News)

Jun 15, 2021

All you need to know about the IPO of Krishna Institute of Medical Sciences.

Why Did Shares of Divi's Lab Rally Today? (Views On News)

Jun 10, 2021

The stock jumped 3.6% in intraday trade to hit its 52-week high.

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.

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


Jun 17, 2021 (Close)

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 5-YR ANALYSIS

COMPARE ABBOTT INDIA WITH

MARKET STATS