• MAY 10, 2000

Ciba Speciality: Impressive performance decent valuations

An impressive performance for an old economy stock! While the turnover has grown by 47% the operating profit has gone up by 63% and the pre–tax profit has gone up by 53%.

(Rs m) FY1999 FY2000 Change
Sales 3,082 4,530 47.0%
Other Income 95 55 -42.1%
Expenditure 2,871 4,186 45.8%
Operating Profit (EBDIT) 211 344 63.0%
Operating Profit Margin (%) 6.8% 7.6%  
Interest 44 49 11.4%
Depreciation 105 109 3.8%
Profit before Tax 157 241 53.5%
Tax 38 60 57.9%
Profit after Tax/(Loss) 119 181 52.1%
Net profit margin (%) 3.9% 4.0%  
Earnings per share* 8.9 13.6  

Ciba Specialities is an offshoot of Hindustan Ciba when the latter merged with Sandoz to form Novartis India.

The stock quotes at Rs 158 which implies an earnings multiple of 11.6 times.

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