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Sunidhi Securities
Arvind Remedies (Buy)
CMP: ₹41.95
Target: ₹66
Incorporated in 1988, ARL went public in 1995. Its presence in domestic market has increased to 30 own brands across acute and chronic segment and 100 generic formulations in various therapeutic segments such as gynecology, nutraceuticals, anti-biotic, analgestic, anti-inflammatory, etc. ARL’s four plants are located at Tamil Nadu and Uttarakhand. ARL’s four subsidiaries are: Coronet Labs, Arvind Wellness, Arvind Remedies USALLc and Arvind Remedies Inc.
ARL is also in mature R&D phases of clinical trial drugs for various lifestyle diseases such as cardiac, depression, arthiritis, neuro-degeneration, etc. The branded formulations are sold to clients such as public hospitals, ESI, Defence, etc. Own formulations constitute 90 per cent of sales whereas CRAMS contribute 10 per cent. Within the formulations, branded formulation contributes 55 per cent of sales and generic formulations represent 35 per cent of sales. Currently ARL is present 10 states in India.
During Q1FY15, net profit went up by 58 per cent to ₹26.1 crore on 41 per cent higher sales of ₹258.6 crore. Q1FY15 EPS works out to ₹3.8.
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