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Monday, 27th July 2015 10:13 - by Moosh
Newsflash for the Snoozers – Part 4
Beximco Pharma (TIDM: BXP)
A recent half year report (24 July 2015) for the profitable BXP, a payer of consistent cash and stock dividends and currently riding a PE ratio of 6.25 based on full year earnings to 31 December 2014 of 3p per share (4.15 Taka), stated the following notable information for the half year to 30 June 2015:
- Profit after tax increased by 39.3%
- Launched 11 new products in the domestic market
- Entered 5 new countries for exports
- Completion of 21 registrations for 19 products in 10 countries
It is of no surprise with this continued growth that the market responded positively to a still undervalued company, based on either earnings or net asset value. For a PE ratio of 10 at which I assume fair value to begin, then fair value should begin at 30p and ride on up to a top fair value price maximum (at a PE ratio of 17) of 51p for a 3p earnings per share. Considering BXP has had growth so far this year too, then even this initial fair value range of 30-51p may seem quite conservative. With the price of BXP at 18.75p as of market close on 24 July 2015 then there is still plenty of headroom to even get to where fair value for BXP should begin at 30p. I’ll be looking forward to the third quarter results usually issued towards the end of October, as well as any updates regarding successful approval of various Abbreviated New Drug Applicatons to the US FDA, the passing of which should then open up a massive future long term market to BXP.
The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.