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Cash Flow Statement (Rs crore) (Year-end March) FY05 FY06 FY07 FY08E FY09E Profit after Tax 164.34 131.12 228.33 283.18 375.60 Misc. exp w/o 0.00 0.00 0.00 0.00 0.00 Dividend Paid -57.01 -57.01 -70.89 -72.11 -72.11 Depreciation 52.44 68.81 81.82 100.14 100.84 Provision for deferred tax 21.73 23.99 5.73 -29.32 0.00 Cash Flow before Working capital Changes 181.50 166.91 244.99 281.89 404.34 Net Increase in Current Liabilities -1.05 125.20 49.29 -22.35 50.31 Net Increase in Current Assets 16.04 133.85 314.85 176.24 147.11 Cash Flow from operating activities 164.41 158.26 -20.57 83.30 307.54 Purchase of Fixed Assets 212.62 382.75 263.80 100.00 100.00 Cash flow from Investing Activities 212.62 382.75 263.80 100.00 100.00 (Increase) / Decrease in Investment -1.47 25.00 0.00 171.27 150.00 Increase / (Decrease) in Loan Funds 10.66 -56.56 327.78 106.17 -51.06 Increase / (Decrease) in Equity Capital 26.20 386.92 -85.59 36.97 6.67 Cash flow from Financing Activities 35.39 355.36 242.19 314.41 105.60 Opening cash balance 25.37 15.51 95.29 50.59 6.38 Closing Cash balance 15.51 95.29 50.59 6.38 20.45 Ratio Analysis (Year-end March) FY05 FY06 FY07 FY08E FY09E EPS 7.86 6.27 10.83 13.52 17.93 Cash EPS 10.36 9.55 14.84 18.31 22.75 Book Value 26.31 45.98 50.14 63.84 78.68 Operating Margin (%) 12.95% 12.49% 13.71% 17.21% 18.49% Gross Profit Margin (%) 13.69% 13.59% 14.29% 16.11% 17.97% Net Profit Margin (%) 12.25% 8.08% 9.24% 10.56% 12.42% RONW 32.87% 13.64% 21.79% 21.22% 22.84% ROCE 17.09% 13.67% 17.14% 18.45% 20.95% Debt Equity 0.74 0.32 0.61 0.56 0.42 Fixed Assets Turnover Ratio 2.01 1.61 1.98 2.18 2.45 Enterprise Value 5281.91 5125.57 5498.05 5511.40 5326.28 EV/Sales 4.04 3.24 2.27 2.07 1.78 EV/EBIDTA 31.18 25.93 16.57 12.02 9.62 Market Cap 4932.40 4932.40 4932.40 4932.40 4932.40 Market Cap to sales 3.77 3.12 2.04 1.85 1.65 14 | P age
RATING RATIONALE ICICIDirect endeavours to provide objective opinions and recommendations. ICICIdirect assigns ratings to its stocks according to their notional target price vs current market price and then categorises them as Outperformer, Performer, Hold, and Underperformer. The performance horizon is 2 years unless specified and the notional target price is defined as the analysts' valuation for a stock. Outperformer: 20% or more; Performer: Between 10% and 20%; Hold: +10% return; Underperformer: -10% or more. Harendra Kumar Head - Research & Advisory harendra.kumar@icicidirect.com ICICIdirect Research Desk, ICICI Securities Limited, 2 nd Floor, Stanrose House, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025 research@icicidirect.com Disclaimer The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities Ltd (I-Sec). The author of the report does not hold any investment in any of the companies mentioned in this report. I-Sec may be holding a small number of shares/position in the above-referred companies as on date of release of this report. This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This report may not be taken in substitution for the exercise of independent judgement by any recipient. The recipient should independently evaluate the investment risks. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Actual results may differ materially from those set forth in projections. I-Sec may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject I-Sec and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. 15 | P age
Page 1 and 2: August 27, 2007 | Pharmaceuticals I
Page 3 and 4: INVESTMENT RATIONALE Emerging as a
Page 5 and 6: Major player in domestic market Do
Page 7 and 8: In-licensing - an opportunity to gr
Page 9 and 10: Strong margin expansion likely in e
Page 11 and 12: VALUATION We believe a robust growt
Page 13: Profit and Loss Statement (Rs crore

himani.singh@icicidir ect.com Nicholas Piramal (NICPIR) Lucrative ...

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