Thanks for starting this. Valuations are not as much talked about as should benon forums like these dominated by traders.

Here I start with my valuation estimate for FEROZ.

For the current quarter, I shall divide Feroz's earnings stream into two segments: Sovaldi segment and traditional segment.

For Sovaldi segment:

Suppose 15000 bottles were sold for each month of the quarter (a conservative estimate as there should be ~3.5 million diagnosed Hep C patients in the country and Sovaldi got full approval in March and hence was available for the whole quarter).

Total revenue from Sovaldi = 15000*3*33000= 1500 million.

Sovali margins = 15%

Profits from Sovaldi = 225 Million

EPS impact from Sovaldi = 7.5 (as shares outstanding are 30 million)

For non-Sovaldi segment; lets suppose EPS is Rs. 6

Total EPS = 7.5+6 =13.5

Lets suppose Sovaldi sales for the next three quarters grow at a conservative rate of 10% and rest at 0%.

Then forward 1 year EPS = 13.5 + 14.25 + 15 + 15.9 = 58

At a conservative multiple of 18, the TP = Rs. 1044.