Claris Lifesciences Ltd - Review - Recommendation

[chetan]

Claris has presence across 76 countries and has achieved approx. 1,100 product registrations worldwide with 332 pending approval. It has been successful in garnering approvals from foreign regulatory authorities which include US FDA, MHRA (UK), TGA (Australia) & GCC FDCA.

Exhibited Stellar financial performance which can be gauged by Total Sales which has grown at a CAGR of 29%, EBITDA at 59% and PAT at 65% over FY 05-09. Shareholders include renowned private equity player Carlyle PE which invested Rs 90.5 cr in March 06 for 13.9% stake since 2006.

Brokerage Recommendations will be posted in this thread.

[chetan]

MSFL Research has the following view,

CLL is priced at 13.8-14.4 post-issue P/E and a P/B of 2.1-2.12 (lower band-upper band). This is at a discount to peers like Aurobindo, Orchid and Strides Arcolab. We believe that the long term growth story is still intact and we recommend SUBSCRIBE to this IPO.

Angel Broking says,

In the past, Claris has grown at a strong pace with net sales increasing at a CAGR of 26.9% and net profit posting a strong CAGR of 65.6% over CY2005-09. The traction in net sales came on the back of strong exports, which also boosted overall operating margins. At the upper end of price band, the IPO is available at 2.5x EV/Sales and 14.4x earnings CY2009. We recommend Subscribe to the issue given the niche product portfolio and potential to expand in regulated (Europe) and emerging markets.

[chetan]

KR Choksey said,

We recommend SUBSCRIBE on the back of CLL’s low cost competitive advantage, having presence in niche segment (sterile injectable), and healthy growth prospects. The company looks attractive on valuations front (available at 44% discount to average sectoral PER of 22x) compared to it peers such as Strides Arcolab, Aurobindo, Torrent Pharma.

At price of ` 278, the stock is available at PER of 12.4x of CY10E EPS of ` 22.4 and at price of ` 293, the stock is available at PER of 12.9x of CY10E EPS of ` 22.8.