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.
Wednesday, December 21, 2011
Glenmark Pharmaceuticals Ltd:-Buy/sell/growth prospects and recommendation,news and results,target price and analysis,view and outlook,multibagger
Scripscan:Glenmark Pharmaceuticals Ltd
cmp:318
Code:532296
Story:Glenmark Pharmaceuticals reported strong sales growth for the quarter which was higher than street estimates driven by US, India and RoW formulation segments.The company continues to witness strong traction in US business on back of improving market share in existing products and new product launches. However, margins were under pressure on back of increase in raw-material prices and unfavorable product mix (higher RoW segment sales).The company expects recurring EBITDA margins to be in range of 21-22% for FY12.Glenmark also launched generic Malarone in September and has 180-days exclusivity. The company also witnessed solid growth in India which was up by 19.7% YoY while RoW market for Glenmark grew by 82.4% YoY on back of Russia/CIS and Africa region. Glenmark reported EBITDA margins (ex R&D income and Forex loss) of 20.5%, below estimates of 21.8% on back of increasing raw-material cost. The raw-material cost increased by 34.2% YoY on back of change in product mix, increase in raw-material prices and higher sample cost. As a result the gross margins contracted by 124bps.The employee cost was up by 18.3% YoY, while SG&A cost (ex forex loss) increased by 27.9% YoY. Further the company’s net profit was marred by one time payment of USD29mn to Paul Capital and MTM forex loss of Rs 850mn.Remains a hold at present levels.
cmp:318
Code:532296
Story:Glenmark Pharmaceuticals reported strong sales growth for the quarter which was higher than street estimates driven by US, India and RoW formulation segments.The company continues to witness strong traction in US business on back of improving market share in existing products and new product launches. However, margins were under pressure on back of increase in raw-material prices and unfavorable product mix (higher RoW segment sales).The company expects recurring EBITDA margins to be in range of 21-22% for FY12.Glenmark also launched generic Malarone in September and has 180-days exclusivity. The company also witnessed solid growth in India which was up by 19.7% YoY while RoW market for Glenmark grew by 82.4% YoY on back of Russia/CIS and Africa region. Glenmark reported EBITDA margins (ex R&D income and Forex loss) of 20.5%, below estimates of 21.8% on back of increasing raw-material cost. The raw-material cost increased by 34.2% YoY on back of change in product mix, increase in raw-material prices and higher sample cost. As a result the gross margins contracted by 124bps.The employee cost was up by 18.3% YoY, while SG&A cost (ex forex loss) increased by 27.9% YoY. Further the company’s net profit was marred by one time payment of USD29mn to Paul Capital and MTM forex loss of Rs 850mn.Remains a hold at present levels.
Plethico Pharmaceuticals Ltd:-Buy/sell/growth prospects and recommendation,news and results,target and analysis,view and outlook,multibagger
Scripscan:Plethico Pharmaceuticals Ltd
cmp:368
Code:532739
Story:Plethico Pharmaceuticals manufactures nutraceuticals and over-the-counter pharmaceuticals products. The company''s USbased subsidiary Natrol has a strong portfolio of brands in the healthcare and wellness segment. It caters to the US and other export markets such as CIS, Africa, Latin American countries, Gulf Co-operation Council (GCC) and South East Asian countries. In recent quarters, the company has not performed well in South East Asia, the Middle East and Eastern European markets. The company''s performance has been quite erratic since the last several quarters giving little visibility to investors on what to expect. It has a negative cash flow and debt in excess of Rs 580 crore. A substantial portion of its cash flow is utilised for capital expenditure, working capital, or repayment of debt. The consumer sentiment in the US and other parts of the world has been weak due to the ongoing uncertainty in the financial markets.This doesn''t augur well for the company.Remains a hold though at present levels.
cmp:368
Code:532739
Story:Plethico Pharmaceuticals manufactures nutraceuticals and over-the-counter pharmaceuticals products. The company''s USbased subsidiary Natrol has a strong portfolio of brands in the healthcare and wellness segment. It caters to the US and other export markets such as CIS, Africa, Latin American countries, Gulf Co-operation Council (GCC) and South East Asian countries. In recent quarters, the company has not performed well in South East Asia, the Middle East and Eastern European markets. The company''s performance has been quite erratic since the last several quarters giving little visibility to investors on what to expect. It has a negative cash flow and debt in excess of Rs 580 crore. A substantial portion of its cash flow is utilised for capital expenditure, working capital, or repayment of debt. The consumer sentiment in the US and other parts of the world has been weak due to the ongoing uncertainty in the financial markets.This doesn''t augur well for the company.Remains a hold though at present levels.
Natco Pharma Ltd:-Buy/sell/growth prospects and recommendation,news and results,target and analysis,view and outlook,multibagger
Scripscan:Natco Pharma Ltd
cmp:225
Code:524816
Story:The Hyderabad-based pharmaceutical company is engaged in the manufacture of active pharmaceutical ingredients and formulations with a focus on oncology. The company owns a retail pharmacy store chain in the US and a small distribution business in Brazil. It is also engaged in contract manufacturing. As part of its marketing strategy, Natco has tied up with leading companies such as Mylan, Dr Reddy''s Labs, Actavis, Breckinridge and Lupin.Net sales and net profit have grown at a CAGR of 20.6% and 17.5%, respectively, in the last five fiscals. The company has been paying dividends since the last five years at an average payout of 10.5%. It plans to spend nearly 5% of its revenues on R&D. The company recently raised Rs 67.5 crore through a qualified institutional placement to fund its expansion plans and meet its working capital requirements. A couple of private equity players have picked up a small stake in the company. Dilip Shanghvi, the promoter of Sun Pharma, has bought a 3.2% stake.Natco Pharma''s stock which had depreciated by 40% in the last 12 months to November, has gained by 20% after the stake deals. With a market capitalisation of Rs 692 crore, the company is valued at one-and-a-half times its consolidated revenues during the last four trailing quarters. These are fair valuations given that the stock is a long-term play for the investors.
cmp:225
Code:524816
Story:The Hyderabad-based pharmaceutical company is engaged in the manufacture of active pharmaceutical ingredients and formulations with a focus on oncology. The company owns a retail pharmacy store chain in the US and a small distribution business in Brazil. It is also engaged in contract manufacturing. As part of its marketing strategy, Natco has tied up with leading companies such as Mylan, Dr Reddy''s Labs, Actavis, Breckinridge and Lupin.Net sales and net profit have grown at a CAGR of 20.6% and 17.5%, respectively, in the last five fiscals. The company has been paying dividends since the last five years at an average payout of 10.5%. It plans to spend nearly 5% of its revenues on R&D. The company recently raised Rs 67.5 crore through a qualified institutional placement to fund its expansion plans and meet its working capital requirements. A couple of private equity players have picked up a small stake in the company. Dilip Shanghvi, the promoter of Sun Pharma, has bought a 3.2% stake.Natco Pharma''s stock which had depreciated by 40% in the last 12 months to November, has gained by 20% after the stake deals. With a market capitalisation of Rs 692 crore, the company is valued at one-and-a-half times its consolidated revenues during the last four trailing quarters. These are fair valuations given that the stock is a long-term play for the investors.
Sunday, December 11, 2011
Suven Life Sciences Ltd:-Buy/sell/,growth prospects and recommendation,news and results,target price and analysis,view and outlook,multibagger
ScripScan:Suven Life Sciences Ltd
code:530239
Cmp:14
Story:Partnership business model with Innovator Drug Companies.Partnering development of under patent molecules.Partnering drug discovery and development of New Chemical Entities with global drug majors.Partnering with multinationals for contract manufacturing.Leveraging relationships with 25 global life science companies.Offering a clear value proposition to multinationals in cutting costs,time to market and outsourcing research capabilities.Successful transformation in supplying products from grams to tons.The company was very much in the limelight recently. The stock has recovered from its recent low of 15rs. The spike up in the stock was after the company announced that its has received four product patent approvals - three from Australia and one from New Zealand, which could be used for treating various central nervous disorders.These patents are valid through 2027. With these new patents, the company now has eleven patents from Australia and twelve from New Zealand. Financially, the company did not do well in Q1FY12. Though the company showed a rise in net income for the quarter at Rs.44.63 crore v/s Rs.35.92 crore in Q1FY11, its net profit showed a decline of 2.32% at Rs.3.36 crore. On an equity of Rs.11.67 crore, this Re.1 face value stock has an annualized EPS of Rs.1.16 and this discounts the current price by 13 times.One shouldnt expect huge returns till the company reports robust numbers.At present its a hold.
code:530239
Cmp:14
Story:Partnership business model with Innovator Drug Companies.Partnering development of under patent molecules.Partnering drug discovery and development of New Chemical Entities with global drug majors.Partnering with multinationals for contract manufacturing.Leveraging relationships with 25 global life science companies.Offering a clear value proposition to multinationals in cutting costs,time to market and outsourcing research capabilities.Successful transformation in supplying products from grams to tons.The company was very much in the limelight recently. The stock has recovered from its recent low of 15rs. The spike up in the stock was after the company announced that its has received four product patent approvals - three from Australia and one from New Zealand, which could be used for treating various central nervous disorders.These patents are valid through 2027. With these new patents, the company now has eleven patents from Australia and twelve from New Zealand. Financially, the company did not do well in Q1FY12. Though the company showed a rise in net income for the quarter at Rs.44.63 crore v/s Rs.35.92 crore in Q1FY11, its net profit showed a decline of 2.32% at Rs.3.36 crore. On an equity of Rs.11.67 crore, this Re.1 face value stock has an annualized EPS of Rs.1.16 and this discounts the current price by 13 times.One shouldnt expect huge returns till the company reports robust numbers.At present its a hold.
Fulford (India) Ltd:-Buy/sell/,growth prospects and recommendation,news and results,target price and analysis,view and outlook,multibagger
ScripScan:Fulford (India) Ltd
code:506803
Cmp:540
History:Fulford (India) Limited is an subsidiary of Schering-Plough Corporation, USA, a leading research-based company, engaged primarily in the discovery, development, manufacturing and marketing of pharmaceutical and health care products worldwide.Fulford ( India) Limited was incorporated 1948. It was then registered under the name C. E. Fulford (India) Private Limited and was 100% owned by C. E. Fulford Limited of UK. Until 1968, the company was engaged in the business of manufacturing and marketing pharmaceutical consumer products, including cough tablets and herbal ointments, marketed under the trademarks – PEPS and ZAMBUK respectively.On July 1, 1968, Schering-Corporation, USA, an international research-based pharmaceutical company acquired 100% ownership of C. E. Fulford Limited, UK. Subsequently, a manufacturing plant was set up at Andheri for the manufacture of pharmaceutical products. The company’s operations commenced with the introduction of an antibiotic injection under the brand name GARAMYCIN and an antifungal skin solution under the brand name TINADERM.In 1971, Schering Corporation merged with Plough Inc., a mass merchandiser of popular consumer products and Schering-Plough Corporation was formed. Schering-Plough has its headquarters and executive offices at New Jersey, USA.In August 1981, the company changed its status from a private company to a public company and from January 1, 1982 diluted the foreign shareholding from 100% to 40%, to fall in line with the prevailing Government policy.In 2006, the Company made a preferential allotment of 7,00,000 equity shares at a price of Rs. 575/- each (inclusive of a premium of Rs. 565/- each), to its promoter, Dashtag, U.K.
Story:Fulford is a leading India centric player in the dermatology segment of the pharmaceutical space with a strong brand franchise.It offers its products for various diseases and conditions, including allergy and respiratory, arthritis and immunology, cancer therapies, cardiovascular, hepatitis, sun care, skin disorders, and systemic anti infective diseases.De-risking the product portfolio away from dermatology is now working well after initial teething troubles.The stock at present quotes at 10-12 times its expected forward earnings.The stock has been steady performer over the last 5 years.Fulford is the most compelling MNC pharmaceutical company in terms of valuation.A safe bet altogether.
code:506803
Cmp:540
History:Fulford (India) Limited is an subsidiary of Schering-Plough Corporation, USA, a leading research-based company, engaged primarily in the discovery, development, manufacturing and marketing of pharmaceutical and health care products worldwide.Fulford ( India) Limited was incorporated 1948. It was then registered under the name C. E. Fulford (India) Private Limited and was 100% owned by C. E. Fulford Limited of UK. Until 1968, the company was engaged in the business of manufacturing and marketing pharmaceutical consumer products, including cough tablets and herbal ointments, marketed under the trademarks – PEPS and ZAMBUK respectively.On July 1, 1968, Schering-Corporation, USA, an international research-based pharmaceutical company acquired 100% ownership of C. E. Fulford Limited, UK. Subsequently, a manufacturing plant was set up at Andheri for the manufacture of pharmaceutical products. The company’s operations commenced with the introduction of an antibiotic injection under the brand name GARAMYCIN and an antifungal skin solution under the brand name TINADERM.In 1971, Schering Corporation merged with Plough Inc., a mass merchandiser of popular consumer products and Schering-Plough Corporation was formed. Schering-Plough has its headquarters and executive offices at New Jersey, USA.In August 1981, the company changed its status from a private company to a public company and from January 1, 1982 diluted the foreign shareholding from 100% to 40%, to fall in line with the prevailing Government policy.In 2006, the Company made a preferential allotment of 7,00,000 equity shares at a price of Rs. 575/- each (inclusive of a premium of Rs. 565/- each), to its promoter, Dashtag, U.K.
Story:Fulford is a leading India centric player in the dermatology segment of the pharmaceutical space with a strong brand franchise.It offers its products for various diseases and conditions, including allergy and respiratory, arthritis and immunology, cancer therapies, cardiovascular, hepatitis, sun care, skin disorders, and systemic anti infective diseases.De-risking the product portfolio away from dermatology is now working well after initial teething troubles.The stock at present quotes at 10-12 times its expected forward earnings.The stock has been steady performer over the last 5 years.Fulford is the most compelling MNC pharmaceutical company in terms of valuation.A safe bet altogether.
Brooks Laboratories Ltd:-Buy/sell/,growth prospects and recommendation,news and results,target price and analysis,view and outlook,multibagger
Scripscan:Brooks Laboratories Ltd
cmp:35
Code:533543
Story:Brooks Laboratories, promoted by Atul Ranchal Rajesh Mahajan (with 35.33% stake) is a contract-manufacturing player supplying injection tablets and dry syrups to leading domestic pharma companies. It manufactures a wide range of products in the formulation segment encompassing beta lactam, cephalosporin & general injections. In the domestic markets its customer base (currently 158) includes companies like Zydus Cadila, Aristo Pharmaceuticals, FDC, Nectar Life sciences, Hetero Healthcare, Medley Pharmaceuticals, Wockhardt, Parental Drugs and Alembic.Further, it is now expanding the business into the International markets of Africa, Middle East and Latin America.It currently own and operate a manufacturing facility (CGMP certified) at Baddi, Himachal Pradesh (commissioned commercial production in 2006), with 1620 lakh (injections – 300, tablets –1200 and dry syrup – 120) combined capacity. The present manufacturing facility of the company is WHO-GMP compliant, which allows selling the goods in India, Africa, and South East Asian Countries & CIS Countries onlyCompetition in the domestic as well as overseas market is high. The company does not seem to have any major USP vis-à-vis other players.The company recorded 17% growth in net sales to Rs 52.54 crore in FY 2011. OPM inclined by 130 basis points to 17.6%, resulting in operating profit to increase by 26% to Rs 9.27 crore. Finally, there was 35% growth at PAT level to Rs 6.99 crore. There was no major increase in sales the past two years (sales in FY 2009 were Rs 44.93 crore) as it decided to concentrate on products/companies offering more margin.The PE works out to 9 times trailing earnings which is high for a tiny contract manufacturer.Sell it at higher levels to move on to some better growth oriented counters with cheaper valuations.
cmp:35
Code:533543
Story:Brooks Laboratories, promoted by Atul Ranchal Rajesh Mahajan (with 35.33% stake) is a contract-manufacturing player supplying injection tablets and dry syrups to leading domestic pharma companies. It manufactures a wide range of products in the formulation segment encompassing beta lactam, cephalosporin & general injections. In the domestic markets its customer base (currently 158) includes companies like Zydus Cadila, Aristo Pharmaceuticals, FDC, Nectar Life sciences, Hetero Healthcare, Medley Pharmaceuticals, Wockhardt, Parental Drugs and Alembic.Further, it is now expanding the business into the International markets of Africa, Middle East and Latin America.It currently own and operate a manufacturing facility (CGMP certified) at Baddi, Himachal Pradesh (commissioned commercial production in 2006), with 1620 lakh (injections – 300, tablets –1200 and dry syrup – 120) combined capacity. The present manufacturing facility of the company is WHO-GMP compliant, which allows selling the goods in India, Africa, and South East Asian Countries & CIS Countries onlyCompetition in the domestic as well as overseas market is high. The company does not seem to have any major USP vis-à-vis other players.The company recorded 17% growth in net sales to Rs 52.54 crore in FY 2011. OPM inclined by 130 basis points to 17.6%, resulting in operating profit to increase by 26% to Rs 9.27 crore. Finally, there was 35% growth at PAT level to Rs 6.99 crore. There was no major increase in sales the past two years (sales in FY 2009 were Rs 44.93 crore) as it decided to concentrate on products/companies offering more margin.The PE works out to 9 times trailing earnings which is high for a tiny contract manufacturer.Sell it at higher levels to move on to some better growth oriented counters with cheaper valuations.
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