Kopran: Restructuring pays off - Views on News from Equitymaster

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

  • MyStocks


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      
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  

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

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.

Laurus Labs Hits New Life High. Up 500%+ in One Year (Views On News)

Jun 8, 2021

Laurus Labs trades higher for the eight straight day, soars 73% in 3 months.

Jubilant Pharmova Drops 6% on Weak March Quarter Numbers (Views On News)

Jun 8, 2021

Here's a rundown on the latest quarterly results of Jubilant Pharmova.

Lupin Gains 16% in a Month. Here's Why it Could Rally More (Views On News)

Jun 4, 2021

Recent developments in digital healthcare and revised targets by brokerages send Lupin shares flying.

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.


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


Jun 17, 2021 09:45 AM


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