Scripscan:Sharon Bio-Medicine Ltd
BSE code:532908
cmp:290
Story:Sharon Bio-Medicine Ltd (SBML) is engaged in the manufacturing of Active Pharma Ingredients (API), Intermediates and Formulations (own brands). It has a diversified product portfolio with presence mainly in acute therapies such as anti-infectives and anti-biotics. SBML also has presence in chronic therapies such as diabetes and cardiovascular. In JY08 (financial year ends in June), it commenced its formulations business with manufacturing of its own brands targeting the domestic market. During JY10, the contribution of sales from formulations business to the total sales was 34.4%. SBML has four manufacturing facilities,three at Taloja in Maharashtra (two for manufacture of API and intermediates and one for Toxicology studies) and one at Dehradun in Uttaranchal for manufacturing of formulation products. During JY10, the Dehradun plant received UKMHRA certification. In addition, it has three R&D centers located at its manufacturing facilities. SBML has set up a R&D unit named sa- FORD (sanctuary for Research and Development Laboratories), which is a state-of-the-art animal testing and breeding facility atTaloja.SBML is committed to leverage the lucrative opportunities coming up by forward integrating into contract formulation research and manufacturing, entering high-margin, highly-sensitive oncology therapeutic segment, invested in new state-of-the-art API facilities targeting the regulated markets, expanding product pipelines by addressing the growing anti-depressant and antiretrovials therapeutic segments, filing DMFs for its key products, strengthening R&D capabilities, vigorously improving productivity in pursuit of operational excellence in all its activities and rank amongst the most efficient and effective companies in this sector. It has also received new approvals for its R&D facilities, which could reap benefits going ahead. This could help SBML to become a fully integrated company, emerge as a suitable partner for long-term relationships and cumulatively strengthen its potential to deliver substantial upside for all its stakeholders.Even though SBML is trading at a higher valuation than its peers we believe there is scope for further appreciation.The stock is currently trading at Rs.290 (~7.8x JY12 (E) EPS of Rs.37.7).A good hold at present prices.
Source:Hdfc
Saturday, December 24, 2011
Friday, December 23, 2011
Sequent Scientific Ltd:-Buy/sell/growth prospects and recommendation,news and results,target price and analysis,view and outlook,multibagger
Scripscan:Sequent Scientific Ltd
cmp:54
Code:512529
Story:They are making APIs (Active Pharmaceutical Ingredients) which we loosely call as bulk drugs for human and veterinary sections. In fact, they are supplying anti-Malaria API largely to Cipla .They have five manufacturing plants and two R&D centers, one at Mangalore and another at Bangalore, and those R&D centers are really doing very well.With a strong executive team and 600 people workforce, the company is impressive in terms of presentations or with project structuring.About 55 APIs are under development stage. This cannot just be treated as a general bulk drug maker or general API company because any breakthrough in any of them, out of 55 APIs even if they are able to succeed in four-five APIs also, that can give them very good profits.In FY11, the company had a topline of close to Rs 300 crore and EPS of close to Rs 7. The company declared 15% dividend, but since all the operations are integrated into one company R&D as well as the production operations, they had bad working in first half where they posted a loss of about Rs 10 crore in the six months ended September 2011. However, topline has very well been maintained at about Rs 160 crore. So, going forward, I am quite optimistic on the stock. At one time may be six months back the stock used to rule at about Rs 100-110 but because of the subdued working in these two quarters the share has corrected now to about Rs 53-54.I don’t think from hereon the share seems to have much downside. The present market cap of about Rs 120 crore and even if I add the entire debt including the working capital, gives an enterprise value of about Rs 300 crore for the company. With a shareholding pattern of 72% held by the promoter, 22% held by about 15-20 HNIs, the public float is very low.So, I find this company quite interesting and if somebody can really remain invested with a view of about two-three years, this can really be a very blockbuster kind of investment in someone’s portfolio. But one has to be very patient. One cannot take a monthly or a quarterly call on the stock. Downside seems to be limited may be 10-15% but on a two-year horizon share can give a return of 100-150% also.
Source:SPT
cmp:54
Code:512529
Story:They are making APIs (Active Pharmaceutical Ingredients) which we loosely call as bulk drugs for human and veterinary sections. In fact, they are supplying anti-Malaria API largely to Cipla .They have five manufacturing plants and two R&D centers, one at Mangalore and another at Bangalore, and those R&D centers are really doing very well.With a strong executive team and 600 people workforce, the company is impressive in terms of presentations or with project structuring.About 55 APIs are under development stage. This cannot just be treated as a general bulk drug maker or general API company because any breakthrough in any of them, out of 55 APIs even if they are able to succeed in four-five APIs also, that can give them very good profits.In FY11, the company had a topline of close to Rs 300 crore and EPS of close to Rs 7. The company declared 15% dividend, but since all the operations are integrated into one company R&D as well as the production operations, they had bad working in first half where they posted a loss of about Rs 10 crore in the six months ended September 2011. However, topline has very well been maintained at about Rs 160 crore. So, going forward, I am quite optimistic on the stock. At one time may be six months back the stock used to rule at about Rs 100-110 but because of the subdued working in these two quarters the share has corrected now to about Rs 53-54.I don’t think from hereon the share seems to have much downside. The present market cap of about Rs 120 crore and even if I add the entire debt including the working capital, gives an enterprise value of about Rs 300 crore for the company. With a shareholding pattern of 72% held by the promoter, 22% held by about 15-20 HNIs, the public float is very low.So, I find this company quite interesting and if somebody can really remain invested with a view of about two-three years, this can really be a very blockbuster kind of investment in someone’s portfolio. But one has to be very patient. One cannot take a monthly or a quarterly call on the stock. Downside seems to be limited may be 10-15% but on a two-year horizon share can give a return of 100-150% also.
Source:SPT
Bliss GVS Pharma Ltd:-Buy/sell/growth prospects and recommendation,news and results,target price and analysis,view and outlook,multibagger
Scripscan:Bliss GVS Pharma Ltd
cmp:25
Code:506197
Story:This is an interesting company. They are into pharma and FMCG, making anti-malaria, respiratory, anti-inflammatory and even dermatology products and some personal care products.First let me take the financial performance of the company for H1FY12, they posted a PAT of about Rs 32 crore on a top line of about Rs 132 crore. This results into a PAT margin of 27% which is very rare. In fact, these kind of PAT margin is not enjoyed by the larger pharma and FMCG companies too.Also, they have posted a 23% growth on the top line on a comparable period of FY11 and posted a growth of 24% in the bottom line. That has resulted into an EPS of about Rs 3.50 for the first six months of the year on a low equity of about Rs 10.50 crore.The share has a face value of Re 1. The book value of the share will be at about Rs 24 by 31 March 2012. That means it is available practically exactly at a book value of Re 1.If you see the manufacturing pipeline of the company, they have a very strong brand portfolio, reputed products enjoyed by the name of the company, and the plant is located at Palghar in Maharashtra.The shareholding pattern is also quite interesting - 65% held by the promoter, 13% by HNIs and about 20-22% is with the public. So the share is available at a PE multiple of three times. It’s a totally debt free company. Additionally, the kind of profitability on an annualized basis is of about Rs 70 crore which makes it a very interesting bet.If somebody can keep it in the portfolio for about two years, I think it is capable of giving a return of about 150-200%. Even on a shorter horizon, maybe in six months or so, the share is capable to give 30% returns.
Source:spt
cmp:25
Code:506197
Story:This is an interesting company. They are into pharma and FMCG, making anti-malaria, respiratory, anti-inflammatory and even dermatology products and some personal care products.First let me take the financial performance of the company for H1FY12, they posted a PAT of about Rs 32 crore on a top line of about Rs 132 crore. This results into a PAT margin of 27% which is very rare. In fact, these kind of PAT margin is not enjoyed by the larger pharma and FMCG companies too.Also, they have posted a 23% growth on the top line on a comparable period of FY11 and posted a growth of 24% in the bottom line. That has resulted into an EPS of about Rs 3.50 for the first six months of the year on a low equity of about Rs 10.50 crore.The share has a face value of Re 1. The book value of the share will be at about Rs 24 by 31 March 2012. That means it is available practically exactly at a book value of Re 1.If you see the manufacturing pipeline of the company, they have a very strong brand portfolio, reputed products enjoyed by the name of the company, and the plant is located at Palghar in Maharashtra.The shareholding pattern is also quite interesting - 65% held by the promoter, 13% by HNIs and about 20-22% is with the public. So the share is available at a PE multiple of three times. It’s a totally debt free company. Additionally, the kind of profitability on an annualized basis is of about Rs 70 crore which makes it a very interesting bet.If somebody can keep it in the portfolio for about two years, I think it is capable of giving a return of about 150-200%. Even on a shorter horizon, maybe in six months or so, the share is capable to give 30% returns.
Source:spt
Sun Pharmaceuticals Industries Ltd:-Buy/sell/growth prospect and recommendation,news and result,target price and analysis,view and outlook,multibagger
Scripscan:Sun Pharmaceuticals Industries Ltd
cmp:490
Code:524715
Story:Sun Pharmaceutical Industries Limited manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) primarily in India and the United States. The company offers formulations in various therapeutic areas, such as cardiology, psychiatry, neurology, gastroenterology, and diabetology. It also provides APIs comprising warfarin, carbamazepine, etodolac, and clorazepate, as well as anticancers, steroids, peptides and controlled substances.Sun Pharma is one of the largest and fastest growing Indian pharmaceutical companies. Management has guided for 28–30% top-line growth for FY2012. Growth reported during the year can also be attributed to the consolidation of Taro’s financials. Management’s guidance for FY2012E includes all growth aspects from Taro as well.I expect Sun Pharma’s net sales to post a 27.3% CAGR to Rs 9,272cr and EPS to register a 21.4% CAGR to Rs 25.9 over FY2011–13E.Buy the stock with a target price of Rs 570 to be achieved in the next 6 months.
cmp:490
Code:524715
Story:Sun Pharmaceutical Industries Limited manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) primarily in India and the United States. The company offers formulations in various therapeutic areas, such as cardiology, psychiatry, neurology, gastroenterology, and diabetology. It also provides APIs comprising warfarin, carbamazepine, etodolac, and clorazepate, as well as anticancers, steroids, peptides and controlled substances.Sun Pharma is one of the largest and fastest growing Indian pharmaceutical companies. Management has guided for 28–30% top-line growth for FY2012. Growth reported during the year can also be attributed to the consolidation of Taro’s financials. Management’s guidance for FY2012E includes all growth aspects from Taro as well.I expect Sun Pharma’s net sales to post a 27.3% CAGR to Rs 9,272cr and EPS to register a 21.4% CAGR to Rs 25.9 over FY2011–13E.Buy the stock with a target price of Rs 570 to be achieved in the next 6 months.
Sterling Biotech Ltd:-Buy/sell/growth prospects and recommendation,news and results,target and analysis,view and outlook,multibagger
Scripscan:Sterling Biotech Ltd
cmp:50
Code:512299
Story:Sterling Biotech Limited engages in the production and sale of gelatin primarily for the pharmaceutical, nutraceutical, and food industries in India and internationally. It also sells Dicalcium Phosphate, a by-product of the gelatin manufacturing process to poultry-feed and fertilizer industry. In addition, the company offers co-enzyme Q10, a dietary supplement.After a lull, the taxman is back to search and seizure operations as far as India Inc is concerned. And this time around it's the pharma sector under the scanner.Sterling Biotech, according to strong market rumuors,was raided by the sleuths of the I-T department earlier this morning. Sources say, the raids were based on alleged tax evasion.As of now, there has not been any cash disclosures or cash seizures from the company. The raid operations are still going on with statements of company officials being recorded.Sterling Biotech has not given out any official response so far.Best to stay out from the stock for the moment.Can hit levels of 30 odd in days to come as investors may panic.
cmp:50
Code:512299
Story:Sterling Biotech Limited engages in the production and sale of gelatin primarily for the pharmaceutical, nutraceutical, and food industries in India and internationally. It also sells Dicalcium Phosphate, a by-product of the gelatin manufacturing process to poultry-feed and fertilizer industry. In addition, the company offers co-enzyme Q10, a dietary supplement.After a lull, the taxman is back to search and seizure operations as far as India Inc is concerned. And this time around it's the pharma sector under the scanner.Sterling Biotech, according to strong market rumuors,was raided by the sleuths of the I-T department earlier this morning. Sources say, the raids were based on alleged tax evasion.As of now, there has not been any cash disclosures or cash seizures from the company. The raid operations are still going on with statements of company officials being recorded.Sterling Biotech has not given out any official response so far.Best to stay out from the stock for the moment.Can hit levels of 30 odd in days to come as investors may panic.
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