Natural capsules ltd- ( Not a buying or selling recommendation , please give your opinion after reading my thread)
✍️Mcap 388 cr
✍️Manufacturing units 2
1- Bangalore
2- Pondicherry
Subsidiary - Natural Biogenex- 115 cr capex
✍️Mcap 388 cr
✍️Manufacturing units 2
1- Bangalore
2- Pondicherry
Subsidiary - Natural Biogenex- 115 cr capex
✍️Business -
1- Capsule manufacturing
Capacity - 18 BCPA ( Billion capsules per annum )
Capex of 38 Cr is going on to increase capacity to 22 BCPA , Capex will be completed by q4 FY23
( Further Attempt to make new generation machine to produce 27 BCPA)
1- Capsule manufacturing
Capacity - 18 BCPA ( Billion capsules per annum )
Capex of 38 Cr is going on to increase capacity to 22 BCPA , Capex will be completed by q4 FY23
( Further Attempt to make new generation machine to produce 27 BCPA)
FY 22 Capsule Manufacturing capacity - 14 BCPA with utilization of 92% capacity
Margins Better now due to Better operating efficiency ) Better speed machines) and better Export ( Domestic 80% and Export 20% )
Margins Better now due to Better operating efficiency ) Better speed machines) and better Export ( Domestic 80% and Export 20% )
✍️Capsules Customers
Abott
Pfizer
Glenmark
Aurobindo
Strides
Laborate
Hetero
Alkem
Abott
Pfizer
Glenmark
Aurobindo
Strides
Laborate
Hetero
Alkem
2-API segment
✍️Capex of 115 cr is going on for fermentation based steroidal API manufacturing .
✍️Production will begin in q1 FY 24
✍️All three molecules are approved in PLI scheme
Company expect 67 cr incentive in PLI scheme over 6 yrs in PLI scheme ( Capex of 115 Cr)
✍️Capex of 115 cr is going on for fermentation based steroidal API manufacturing .
✍️Production will begin in q1 FY 24
✍️All three molecules are approved in PLI scheme
Company expect 67 cr incentive in PLI scheme over 6 yrs in PLI scheme ( Capex of 115 Cr)
✍️Molecules under API capex
1- Dexamethasone - Capacity 10 MT ( Only Manufacturer) total import in india 19MT
2- Betamethasone - Capacity 12 MT ( Only manufacturer) total import 20 MT
3- Prednisolone -15 MT ( one of the two manufacturer ) Total import 39 MT
1- Dexamethasone - Capacity 10 MT ( Only Manufacturer) total import in india 19MT
2- Betamethasone - Capacity 12 MT ( Only manufacturer) total import 20 MT
3- Prednisolone -15 MT ( one of the two manufacturer ) Total import 39 MT
✍️API segment Total asset turnover of 2.7 x from incremental capacity at optimum utilization.
API steroidal products will be backward integrated .
API steroidal products will be backward integrated .
Long Term Borrowing - 56 Cr
Weakness - Poor CFO
Weakness - Poor CFO
Natural capsules - bad results
Forwarded msg.
Natural Capsule (NTCP) / CMP Rs 368 / Not rated: On a strong footing in its traditional Business (capsule manufacturing) and foray into Steroidal API under PLI scheme should help accelerate growth- - Investor Conference - KTAs
Natural Capsule which is traditionally a capsule manufacturing company has recently forayed into API manufacturing through investments in manufacturing Steroidal API ( under PLI scheme). Company is investing Rs. 130 crores in Steroid API and would be the only player in India to do steroid API manufacturing. Currently India imports steroid API worth Rs. 1500 crore annually and Natural capsule would be able to substitute about 20% of this demand through its capacity. Commercial scale operation for steroidal API will begin in Q3 FY24 and will gradually scale up to full capacities ( Rs. 250 to Rs. 300 cr) over the next 3 years. At peak utilizations, EBITDA margins (without PLI incentive) would be around 22%. Company is eligible for a cumulative PLI incentive of Rs. 67 crores over the terms of the PLI scheme. In the traditional business of capsule manufacturing, company is aggressively investing into capacities (tripled capacities over last 3 years; Currently capacities stand at 22bcpa) and getting into higher margin categories like HPMC Capsule. They have been a laggard in the capsule manufacturing business until 2019, but post introduction of the 5mn capsule per day machine (exclusively developed with machinery manufacturer), they have been able to scale up the business . The new machine allows a saving of 15 to 20% in operational costs and has allowed Natural capsule to tap into larger customers (Abbott, Pfizer, Alkem, Cipla, Ajanta Pharma) which require suppliers that can offer quick turnaround time. Company supplies capsules for reputed branded products like Becosules , PAN-D, etc. The company expects to clock Rs. 210 crores in annual revenue from the capsule business in FY24 and operating margins should be around 20%.
Natural Capsule (NTCP) / CMP Rs 368 / Not rated: On a strong footing in its traditional Business (capsule manufacturing) and foray into Steroidal API under PLI scheme should help accelerate growth- - Investor Conference - KTAs
Natural Capsule which is traditionally a capsule manufacturing company has recently forayed into API manufacturing through investments in manufacturing Steroidal API ( under PLI scheme). Company is investing Rs. 130 crores in Steroid API and would be the only player in India to do steroid API manufacturing. Currently India imports steroid API worth Rs. 1500 crore annually and Natural capsule would be able to substitute about 20% of this demand through its capacity. Commercial scale operation for steroidal API will begin in Q3 FY24 and will gradually scale up to full capacities ( Rs. 250 to Rs. 300 cr) over the next 3 years. At peak utilizations, EBITDA margins (without PLI incentive) would be around 22%. Company is eligible for a cumulative PLI incentive of Rs. 67 crores over the terms of the PLI scheme. In the traditional business of capsule manufacturing, company is aggressively investing into capacities (tripled capacities over last 3 years; Currently capacities stand at 22bcpa) and getting into higher margin categories like HPMC Capsule. They have been a laggard in the capsule manufacturing business until 2019, but post introduction of the 5mn capsule per day machine (exclusively developed with machinery manufacturer), they have been able to scale up the business . The new machine allows a saving of 15 to 20% in operational costs and has allowed Natural capsule to tap into larger customers (Abbott, Pfizer, Alkem, Cipla, Ajanta Pharma) which require suppliers that can offer quick turnaround time. Company supplies capsules for reputed branded products like Becosules , PAN-D, etc. The company expects to clock Rs. 210 crores in annual revenue from the capsule business in FY24 and operating margins should be around 20%.
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