2009
Eurion Constellation
June 2009
XYZ Pharma: Sample ICR
Eurion Constellation | Sample Initiatial Coverage Report 2
Explanations and Disclaimers
This is only an indicative sample ICR and the following specs need attention:
Financial analysis and forecasts for the basis of company research and stock
analysis. This is work is beyond the scope of the following sample ICR have not
been made.
On the basis of forecasted figures, the valuations are done and recommendations
made.
The following is more condensed work focussing on performance, risks &
opportunities, and strategic initiatives.
More detailed work in the form of recent developments or guidance regarding
future plans form part of a typical ICR.
Eurion Constellation | Sample Initiatial Coverage Report 3
XYZ Pharma
July 1, 2009
Initiating Coverage Report
Share Data
Market Cap
Rs/$
Price
Rs/$
BSE/NASDAQ Index
Rs/$
Scrip Id
XYZ
Avg. Vol. (52 Week)
52-Week High/Low
Rs/$
Shares Outstanding
Valuation
Ratios
2010E
2011E
EPS (Rs.)
PE Ratio
Shareholding (%)
Promoters
48.83
Individuals
30.14
Non-Institutional
13.98
Others
6.76
FIIs
0.29
Cut-throat competition forces XYZ into losses
On June 30, 2009, XYZ Pharma Ltd came out with
its annual results for the year ended March 31,
2009, reporting huge losses of Rs/$ mn. In FY 2009,
the sales grew by approx. 36%, including inorganic
growth from the acquisition of MN (Druggists) Ltd
and ABC Ltd. However, on account of increased
employee cost (105%) and other expenses (46%),
EBITDA fell by 28.7%. some of the increased
expenditure is explained by the acquisition of ABC
made during the year. Increase in interest costs by
almost 80% has put further pressure on the net
income, pushing the company into losses.
Since FY 2007, XYZ has not been able drive its sales
growth
in
the API
(Active Ph