Suven Pharma - Product Mix Takes Toll On Margins, Thesis Unchanged: Anand Rathi
Capsules pass along the production line during manufacture. (Photographer: Dhiraj Singh/Bloomberg)

Suven Pharma - Product Mix Takes Toll On Margins, Thesis Unchanged: Anand Rathi

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

Driven by 51.3% growth in contract development and manufacturing organisation pharma and 36.8% in contract development and manufacturing organisation specialty chemicals, Suven Pharmaceuticals Ltd.’s Q4 revenue grew 40% to Rs 2.6 billion.

The Ebitda margin softened 529 basis points to 36.2% due to a change in the product mix and higher freight and overhead costs due to Covid-19.

In spite of a challenging H1 FY21, revenue grew 21.1% and the FY21 Ebitda margin came at 43.6%.

Management aims at 10-15% revenue growth in FY22.

Click on the attachment to read the full report:

Anand Rathi Suven Pharma Company Update.pdf

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