Kopran: Restructuring pays off - 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?  

Kopran: Restructuring pays off

Aug 4, 2000

Kopran has reported a 70% growth in net profits in the first quarter of the current year despite a 5% reduction in turnover. While other income (which accounted for 21% of the PBT) was partly responsible for the growth the main reason for the demerger was the spin off the low margin yielding semi synthetic penicillin (SSP) business into a separate company last year.

(Rs m) 1QFY00 1QFY01 Change
Sales 543 515 -5.2%
Other Income 3 8 175.0%
Expenditure 465 413 -11.2%
Operating Profit (EBDIT) 79 103 30.5%
Operating Profit Margin (%) 14.5% 19.9%  
Interest 40 50  
Depreciation 19 22 17.6%
Profit before Tax 23 38 70.7%
Other Adjustments      
Tax      
Profit after Tax/(Loss) 23 38 70.7%
Net profit margin (%) 4.1% 7.5%  
No. of Shares (m) (eoy) 14.3 14.3  
Diluted no. of shares (m) 14.3 14.3  
Diluted Earnings per share* 6.3 10.7  
*(annualised)      

The company had a joint venture with Synpac Pharma one of the largest single site penicillin manufacturers in the world. The world over it has been seen that as far as semi synthetic penicillin (SSP) is concerned it is the only the integrated players who have emerged successful.

To the shareholders of Kopran, one share in the new company KDL Biotech was given for every two shares that they held in Kopran Ltd. The latter is now basically focused on five therapeutic areas: cardiology, respiratory, gastrointestinal, antibiotics and pain management. Of the company’s domestic dosage sales around 20% accrues from products under the DPCO.

The stock quotes at Rs 84 (its 52 week low) which implies an earning multiple of 7.8 times its first quarter annualised earnings. The market, however, does not seem to be appreciating the steps that the management has taken to improve transparency and shareholder value.


Equitymaster requests your view! Post a comment on "Kopran: Restructuring pays off ". Click here!

  

More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why am I Recommending Caution? (Fast Profits Daily)

Sep 9, 2020

This is why I have changed my short-term view on the market.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

KOPRAN LTD. SHARE PRICE


Sep 21, 2020 (Close)

TRACK KOPRAN LTD.

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

MARKET STATS