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Shasun Pharma @ Rs 75 ~ had warned exactly a year ago at Rs 115 that it will sink below Rs 100

Tomorrow is Shasun’s Concall at 12 noon for FY 13 Results and outlook ~ those interested can log in on +91-22-3325 4200 or 1800 102 1300

Their PR Team had called one of my Analysts to request we attend the Concall ~ we just might though Shasun Pharma is not one of our recommendations and we are not really enamoured by it

In fact exactly a year ago on blog reader Rohit’s request I had blogged on it advising exit  Rs 115 as I was not impressed with the Accounting Treatments and Disclosures and had stated that Operating EPS  is actually half  at Rs 10 if we remove exceptional items  ~ had warned that it will sink below Rs 100 ~ however before it did it rose to Rs 185 in September 2012  before collapsing to a low of Rs 60 in March 2013 and has recovered to Rs 75 levels ~ do recollect it placed shares at Rs 76 a year or two ago ~ this is the blog link of a year ago

Rohit has inquired ~ Shasun Pharma @ Rs 115 ~ Now in Reverse Gear from a Meteoric Rise inside Months ~ Prudent to Exit and Book Profits in this Fun Run

Thursday, May 31st, 2012

Had received responses from Vikas ,Rohit and Rao Bellam on the above blogpost with even Rao analysing it too

FY 13  Performance shows EPS levels halving at Rs 9.61 with Profits dropping to Rs 53 crs from Rs 100 crs in FY 12 as Other Income dropped as FY 12 had seen Rs 27 crs Income from land and building sales at Velachery and Tax Credits of Rs 20 crs + in FY 12   were not available in FY 13

Though Borrowings have shot up  ~Long Term ( from Rs 78 crs  to Rs 118 crs) and Short term Borrowings ( From Rs 229 crs top Rs 318 crs)  the Finance Charges show a decline from Rs 43.7 crs to Rs 33.2 crs~ need to ask  the Company why ?  probably capitalising interest

At March 31,2013 the Consolidated Networth is Rs 270 crs with Equity of FV Rs 2 at Rs 11.33 crs => Book Value is Rs 48

The Share Price of Rs 75 gives a Book Multiple of 1.56 and an Earnings Multiple of 7.8

Shasun MD Abhaya Kumar had boasted in mid 2012 that the Company will acheive a Turnover of Rs 2000 crs by 2015 and a Billion Dollars by 2020 and there were great expectations from the  UK Subsidiary

Well FY 13 has seen Sales just about being maintained at just over Rs 1000 crs ~ Dividend has been dropped to 75% or Rs 1.50 per share from 120 % or Rs 2.40 per share for FY 12

Inclined to have my Analyst to attend the Concall ~ just to hear what’s the latest Boast !



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