Suven Pharma high volume breakout
Updated
1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss/(Buy Price-Initial Stop Loss Price)
4. Sell on initial stop loss hit or close below daily supertrend (for short term traders) or close below weekly supertrend (for long term investors)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Largest weekly price spread
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
after a consolidation since August 2021
SUVENPHAR gave a high volume break out today. It is a buy with a stop around Rs. 544.
Other fundamentals:
1. SPL engages in NCE molecule development and supply of intermediates. This is a high-value-add, high-margin business. SPL supplies intermediates for four molecules addressing rheumatoid arthritis, diabetes, depression and women’s health. This segment makes up 78% of revenues. The company has a strong order book with new clients being consistently added. Most clients are the Big Pharma companies in Europe and the US. The company is looking to shift from Intermediate to API manufacturing and is in discussion with clients regarding this. The company has stated that it has the facilities for API manufacturing.
2. The Company is supplying intermediates – derived out of its CDMO competence – for two specialty chemical products (agrochemical) to large global conglomerates. In this segment, the company is currently working on two molecules with a new molecule to be developed next year.
3. The company has planned for a capex of Rs 600cr, a large part of which will be utilized in facility upgradation, technology enhancement and relocation spread over 3 years. This will be over and above the current ongoing capex of Rs 320cr spent over FY19-21. The capex would be mainly used for modernization of manufacturing facilities, relocation of R&D facilities and acquisition of new technologies. The company has already spent a Capex of Rs.94cr in 9MFY21 to expand its existing manufacturing facilities.
4. Suven Pharma is associated with more than 70 global companies. The company has an established market position in the CRAMS segment and is among the top five players in India who supply high-end intermediaries to innovators. Company is getting repeat business owing to long standing relationships with MNC companies. The industry has high entry barriers, needs deep technical expertise and is a sticky business.
5. Suven Pharma Inc. is a wholly owned subsidiary of SPL. It is a Special Purpose Vehicle created to invest in Rising Pharma Holdings Inc. Suven Pharma Inc. has 25 % holding in Rising Pharma Holdings Inc. Rising Pharma Holdings Inc. is a New Jersey, USA based pharmaceutical company focused on developing generic pharmaceuticals products in various therapeutic segments.
6. Company has reduced debt.
7. Debtor days have improved from 76.94 to 37.01 days.
8. Since June 2020 FII steak increased from 3.55 to 8.25.
9. Debt to equity at 0.10 (less than 1 is good), Interest Coverage at 104 (greater than 3 is good), Current ratio at 3.19 (greater than 1.5 is good).
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss/(Buy Price-Initial Stop Loss Price)
4. Sell on initial stop loss hit or close below daily supertrend (for short term traders) or close below weekly supertrend (for long term investors)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Largest weekly price spread
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
after a consolidation since August 2021
SUVENPHAR gave a high volume break out today. It is a buy with a stop around Rs. 544.Other fundamentals:
1. SPL engages in NCE molecule development and supply of intermediates. This is a high-value-add, high-margin business. SPL supplies intermediates for four molecules addressing rheumatoid arthritis, diabetes, depression and women’s health. This segment makes up 78% of revenues. The company has a strong order book with new clients being consistently added. Most clients are the Big Pharma companies in Europe and the US. The company is looking to shift from Intermediate to API manufacturing and is in discussion with clients regarding this. The company has stated that it has the facilities for API manufacturing.
2. The Company is supplying intermediates – derived out of its CDMO competence – for two specialty chemical products (agrochemical) to large global conglomerates. In this segment, the company is currently working on two molecules with a new molecule to be developed next year.
3. The company has planned for a capex of Rs 600cr, a large part of which will be utilized in facility upgradation, technology enhancement and relocation spread over 3 years. This will be over and above the current ongoing capex of Rs 320cr spent over FY19-21. The capex would be mainly used for modernization of manufacturing facilities, relocation of R&D facilities and acquisition of new technologies. The company has already spent a Capex of Rs.94cr in 9MFY21 to expand its existing manufacturing facilities.
4. Suven Pharma is associated with more than 70 global companies. The company has an established market position in the CRAMS segment and is among the top five players in India who supply high-end intermediaries to innovators. Company is getting repeat business owing to long standing relationships with MNC companies. The industry has high entry barriers, needs deep technical expertise and is a sticky business.
5. Suven Pharma Inc. is a wholly owned subsidiary of SPL. It is a Special Purpose Vehicle created to invest in Rising Pharma Holdings Inc. Suven Pharma Inc. has 25 % holding in Rising Pharma Holdings Inc. Rising Pharma Holdings Inc. is a New Jersey, USA based pharmaceutical company focused on developing generic pharmaceuticals products in various therapeutic segments.
6. Company has reduced debt.
7. Debtor days have improved from 76.94 to 37.01 days.
8. Since June 2020 FII steak increased from 3.55 to 8.25.
9. Debt to equity at 0.10 (less than 1 is good), Interest Coverage at 104 (greater than 3 is good), Current ratio at 3.19 (greater than 1.5 is good).
Note
the Board of Directors of Suven Pharmaceuticals Limited (SPL) in its meeting held today i.e., 5th April, 2022 at 10.30 a.m. has approved the investments by way of purchase of entire (100%) share capital from the existing shareholders of Casper Pharma Private Limited (“CPPL”) a Hyderabad based SEZ company engaged in formulations business. Post purchase of shares, the target entity would become a wholly owned subsidiary of SPL.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.