Looking for growth? Don't miss Marksans Pharma with its track record of fast growth
06-06-2015 • About Marksans Pharma (
$MARKSANS) • By InTwits
Marksans Pharma is an attractive growth stock in Pharmaceuticals industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Marksans Pharma showed fast growth in the last financial year. The company's revenue surged on 26.8% in FY2015. In addition to revenue Marksans Pharma also keeps delivering EBITDA growth. It was 62.2% in FY2015
In the last 3 years the company showed fast revenue growth of 30.9% from FY2012 to FY2015 annually. EBITDA surged on nan% from FY2012 to FY2015 annually.
Marksans Pharma ($MARKSANS) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 3,046 | 3,555 | 4,384 | 6,285 | 7,967 |
|---|
| Revenue growth, % | | 16.7% | 23.3% | 43.3% | 26.8% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | -752 | -968 | 659 | 1,140 | 1,849 |
|---|
| EBITDA growth, % | | 28.7% | -168.1% | 72.9% | 62.2% |
|---|
| EBITDA margin, % | -24.7% | -27.2% | 15.0% | 18.1% | 23.2% |
|---|
| Net Income | -2,232 | -1,788 | 459 | 719 | 1,094 |
|---|
| Net Income margin, % | -73.3% | -50.3% | 10.5% | 11.4% | 13.7% |
|---|
| |
| CAPEX | 0 | 53 | 64 | 52 | 365 |
|---|
| CAPEX/Revenue, % | 0% | 1.48% | 1.47% | 0.829% | 4.58% |
|---|
| Debt | 1,867 | 1,788 | 1,628 | 1,597 | 822 |
|---|
| Cash | 62 | 221 | 155 | 467 | 1,851 |
|---|
| Net Debt/EBITDA | -2.4x | -1.6x | 2.2x | 1.0x | -0.6x |
|---|
| |
| ROIC, % | -25.8% | -142.4% | 34.9% | 33.8% | 41.2% |
|---|
| ROE, % | | | | 71.3% | 44.1% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. Marksans Pharma showed fast EBITDA margin growth of 5.10 pp from 18.1% to 23.2% in FY2015. In the last 3 years the company's EBITDA margin surged on 50.4 pp from -27.2% in FY2012 to 23.2% in FY2015.
Marksans Pharma shows attractive ROIC at 41.2% for the last 12 months which assumes stable development model. Three years ago it was considerably lower at -142%. For the last three years the average ROIC was 36.6%.
The company's Net Income margin surged on 2.30 pp from 11.4% to 13.7% in FY2015. If we look for the longer period the company showed fast Net Income margin growth of 64 pp from -50.3% in FY2012 to 13.7% in FY2015.
Marksans Pharma operates at ROE of 44.1%.
Capital expenditures (CAPEX)
Marksans Pharma's CAPEX/Revenue was 4.58% in FY2015. The company showed fast CAPEX/Revenue growth of 3.09 pp from 1.48% in FY2012 to 4.58% in FY2015. For the last three years the average CAPEX/Revenue was 2.29%.
Leverage (Debt)
Marksans Pharma has negative net debt at -0.6x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period Marksans Pharma's leverage surged on 1.06x from -1.62x in FY2012 to -0.56x in FY2015.
Peers in Pharmaceuticals
Below you can find Marksans Pharma benchmarking vs. other companies in Pharmaceuticals industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Mangalam Drugs & Organics ($MANGALAM) | | 16.6% | -18.2% | -2.1% | 79.8% |
| Sun Pharmaceutical Industries ($SUNPHARMA) | | 39.9% | 40.4% | 42.4% | 70.2% |
| Torrent Cables ($TORRCABS) | | 27.5% | 17.4% | -42.9% | 26.5% |
| Lincoln Pharmaceuticals ($LINCOPH) | | 6.3% | 3.8% | 8.5% | 25.9% |
| Divi'S Laboratories ($DIVISLAB) | | 42.2% | 15.1% | 18.0% | 23.3% |
| |
|---|
| Median (37 companies) | -16.1% | 16.6% | 14.7% | 12.6% | 9.2% |
|---|
| Marksans Pharma ($MARKSANS) | | 16.7% | 23.3% | 43.3% | 26.8% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Dr.Reddy'S Laboratories ($DRREDDY) | | | 52.1% | 57.4% | 57.6% |
| Omega Laboratories ($OMEGALAB) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (2 companies) | | 46.9% | 26.1% | 28.7% | 28.8% |
|---|
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Divi'S Laboratories ($DIVISLAB) | 38.1% | 37.2% | 38.2% | 40.2% | 37.4% |
| Hester Biosciences ($HESTERBIO) | | | | | 32.9% |
| Sun Pharmaceutical Industries ($SUNPHARMA) | 34.3% | 40.8% | 44.3% | 44.9% | 29.2% |
| Natco Pharma ($NATCOPHARM) | 21.3% | 21.5% | 23.2% | 24.9% | 26.2% |
| Dr.Reddy'S Laboratories ($DRREDDY) | 21.7% | 25.8% | 22.9% | 25.1% | 23.2% |
| |
|---|
| Median (46 companies) | 16.5% | 12.9% | 12.8% | 14.3% | 13.0% |
|---|
| Marksans Pharma ($MARKSANS) | -24.7% | -27.2% | 15.0% | 18.1% | 23.2% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Claris Lifesciences ($CLARIS) | 32.5% | 58.1% | 42.9% | | 103.1% |
| Wintac ($WINTAC) | | | | | 22.8% |
| Hester Biosciences ($HESTERBIO) | | | | | 21.5% |
| Ipca Laboratories ($IPCALAB) | 10.3% | 11.2% | 8.3% | 11.6% | 17.8% |
| Natco Pharma ($NATCOPHARM) | 20.0% | 24.4% | 16.3% | 14.4% | 14.1% |
| |
|---|
| Median (30 companies) | 7.4% | 8.2% | 8.3% | 5.8% | 6.3% |
|---|
| Marksans Pharma ($MARKSANS) | 0.0% | 1.5% | 1.5% | 0.8% | 4.6% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Alembic Pharmaceuticals ($APLLTD) | | 27.5% | 29.1% | 41.5% | 35.7% |
| Jenburkt Pharmaceuticals ($JENBURPH) | 43.6% | 34.1% | 29.0% | 32.4% | 35.3% |
| Abbott India ($ABBOTINDIA) | 36.0% | 29.6% | 26.9% | 30.5% | 34.2% |
| Divi'S Laboratories ($DIVISLAB) | 25.6% | 30.6% | 30.4% | 32.3% | 30.5% |
| Ngl Fine-Chem ($NGLFINE) | 19.0% | 9.3% | 17.9% | 22.4% | 27.5% |
| |
|---|
| Median (53 companies) | 14.0% | 14.0% | 13.2% | 14.4% | 13.2% |
|---|
| Marksans Pharma ($MARKSANS) | -25.8% | -142.4% | 34.9% | 33.8% | 41.2% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Jubilant Life Sciences Limited ($JUBILANT) | 5.3x | 4.0x | 3.5x | 3.5x | 6.4x |
| Shasun Pharmaceuticals ($SHASUNPHAR) | 4.5x | 2.8x | 4.5x | 6.0x | 6.2x |
| Claris Lifesciences ($CLARIS) | 1.5x | 1.9x | 1.1x | 1.8x | 3.2x |
| Dishman Pharmaceuticals & Chemicals ($DISHMAN) | 3.7x | 3.6x | 2.6x | 2.3x | 2.9x |
| Neuland Laboratories ($NEULANDLAB) | 4.9x | 4.2x | 3.5x | 2.6x | 2.6x |
| |
|---|
| Median (42 companies) | 1.6x | 1.5x | 1.2x | 0.3x | 0.6x |
|---|
| Marksans Pharma ($MARKSANS) | | | 2.2x | 1.0x | -0.6x |
