Krebs Biochemicals & Industries Ltd
Pharmaceuticals
FV – Rs 10; 52wks H/L –165/76.90; TTQ – 2 K; CMP – Rs 103 (As On May 5th 2016; 11:00) ;
Market Cap – Rs 127.87 Crs
Standalone Financials and Valuations for 9Months FY16 (Amt in Rs.Crs unless specified)
Equity Capital |
Net worth |
Long Term Debt | Total Sales |
PAT | BV (Rs) |
TTM EPS (Rs) |
TTM P/E |
Industry P/E |
P/BV |
Promoter’s Stake |
Beta |
| 12.41 | -14 | 65 | 0.9 | -10.31 | -11 | – 8.31 | – | 33.53 | – | 57.67 | – |
Standalone Financials and Valuations for FY15 (Amt in Rs Crs unless specified)
Equity Capital |
Net worth |
Long Term Debt | Total Sales |
PAT | BV (Rs) |
EPS (Rs) |
P/E |
P/BV |
Beta |
| 9.51 | -5 | 57 | 0.01 | -7.84 | -22 | -8.24 | – | – | – |
IPCA Labs picked up 23 Lacs shares (26%) in Krebs Biochemicals ltd through an open offer at Rs.54/- per share.
The successful completion of USFDA (United States of Food and Drug administration) audit and its approval for Unit-I is an added advantage for the Company to attract good customers.
The company didn’t record turnover during the period on account of closure of both the manufacturing plants due to power shortage in Andhra Pradesh.
Reserves of the company decreased from Rs.6 Crs to Rs.14 Crs due to increased losses during the year.
Overview:
- Krebs Biochemicals and Industries Ltd is an India-based company engaged in the business of manufacture of active pharmaceutical ingredients.
- The Company is producing a number of pain killers, anti-asthmatic and anti-human immunodeficiency virus (HIV) drugs under contract manufacturing.
- The Company offers Simvastatin and Lovastatin as anti-cholesterols, and Ephedrine and Pseudo ephedrine as anti-asthmatic.
- The Company’s products under development include Adenine as an intermediate for Tenofovir Anti HIV; Atorvastatin Intermediates as Anti Cholesterols; Phenylephrine for Cough and cold, and Orlistat against obesity.
The Company has two manufacturing facilities one at Regadichelaka, Nellore and another one at Kothapalli Village, Kasimkota Mandal, Vishakapatnam, both in India.
The company has entered in to an agreement with M/s Edelweiss Asset Reconstruction Co. Ltd. for repayment of the assigned debt by Exim Bank in instalments commencing from June, 2015.
Industry Updates:
- Global Pharmaceutical Industry is estimated now to be US $ 1 trillion and is growing at a rate of 4-5% per annum. Pharmaceutical industry is facing many challenges and uncertainties.
- A number of Big Generics based Pharmaceutical companies have emerged in India over the past decade and are driving the growth in the Pharmaceutical sector in India.
- India’s own requirement of pharmaceuticals is seeing a steady and significantly higher than world average growth. This is the very reason large Pharma companies are eyeing the Indian market and trying to grab a slice of the pie by way of acquisitions and large marketing outlays.
Management:
- Dr. R. T. Ravi – Chairman
- Mr. Avinash Ravi – MD
Major Non-Promoter Holdings:
| Sr.No | Non – Promoters | No. of Shares held | % of shares held |
| 1 | K. Satish | 245869 | 1.98 |
| 2 | Edelweiss Asset Reconstruction Co.Ltd | 150000 | 1.21 |
| 3 | Shaaji palliyath | 150000 | 1.21 |
| 4 | Pinky Ventures Private Ltd | 600000 | 4.83 |
| 5 | Sun Pharmaceutical Industries Ltd | 1050000 | 8.46 |
| Total | 2195869 | 17.69 |
Standalone Financial Trends (In Rs.Crs):
| Particulars | FY15 | FY14 | FY13 | FY12 | FY11 |
| Equity Paid Up | 9.51 | 9.51 | 9.51 | 9.51 | 9.05 |
| Networth | -5 | 4 | 8 | 23 | 39 |
| Total Debt | 57 | 25 | 76 | 80 | 85 |
| Net Sales | 0.01 | 0.2 | 18 | 74 | 79 |
| Other Income | 0.01 | 0.2 | 6 | 3 | 7 |
| PAT | -7.84 | -4.35 | -15.2 | -17.44 | -6.68 |
| Book Value (Rs) | -5 | 4 | 8 | 24 | 43 |
| EPS (Rs) | -8.24 | -4.57 | -15.98 | -18.34 | -7.38 |
The numbers are of 6 months ended FY15 and 15 months for FY14 (Sept 14) and same for FY13.
Only FY11 and FY12 are 12 months ended.
The Company announced to consider and allot 650000 equity shares and 680000 warrants convertible to Equity shares of Rs.10 each on preferential basis.
