Add Marksans Pharma Ltd for the Target Rs. 290 by Choice Institutional Equities
Key Conference Call Highlights
US and North America Business
* North America remains the largest and fastest-growing segment with FY26 revenue of 15,330 Mn, up 24% YoY.
* The business has scaled up sharply in the last four years, reflecting strong customer relationships and execution capabilities.
* Launched 112 SKUs in FY26 in North America and has 51 products in the pipeline at present so as to support future growth.
* The management acknowledged that the US market remains highly competitive with continued pricing pressure.
UK and Europe Business
* The UK business witnessed a recovery in momentum in H2FY26 after facing pricing pressure in the early part of the year.
* The UK product pipeline is robust, with 18 new approvals, 30 products under review and 24 awaiting approval, giving strong medium-term visibility.
* Over 200 products are planned for filing in the UK in the next four years.
* Europe has been identified as the next major growth pillar and the management highlighted ongoing efforts to expand beyond Germany, into multiple European countries.
* The management projects Europe to start contributing meaningfully from H2FY27.
Australia and New Zealand Business
* 11 branded generic products were launched through Nova Pharma, marking the company's entry into the Prescription (Rx) segment in Australia.
* The management is targeting USD 100 Mn in Australia revenue in three years.
* The management stated that the prescription expansion significantly increases the addressable opportunity in Australia and creates a new long-term growth driver.
Outlook
* The management reaffirmed a target of INR 40 Bn in revenue within the next two years and outlined a roadmap to double the revenue in the next 3 to 5 years.
* The management guided for revenue growth of 15–20% with EBITDA margin anticipated to remain stable at 20–21% in FY27.
* Near-term headwinds include raw material cost inflation of 20– 30% on petroleum-linked inputs and slightly elevated logistics cost, though the management noted existing inventory provides cover through Q1FY27.
* The company is actively evaluating M&A opportunities across geographies, with due diligence already under way for one target and another target is under evaluation, with the transaction expected to materialise in FY2027E.
* R&D spend will be maintained at approximately 3% of revenue.
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SEBI Registration no.: INZ 000160131
