Sunday, March 18, 2012

HIKAL - BUY
















HIKAL– jointly promoted by Hiremath and  Kalyani groups is in the manufacturing of chemicals and intermediates for  sectors like Pharmaceuticals,Biotechnology and Crop protection. About 70% of company’s earnings is coming  from exports and having strong marketing tie-ups with multinationals includes Bayer,Syngenta,Degussa and Pfizer.Company is also very active in contract research(CRAMS) through its 100% subsidiary ‘Acoris’. Company’s manufacturing facilities are located in Taloja,Mahad,Bangalore,Panoli and Pune.Hikal is proving support for Discovery Research, Process Development, Analytical Method Development and Custom Manufacturing  and gained good reputation among multinational companies.Company’s expertise and lower wage structure prevailing in India compared with foreign countries providing enough scope for growth in these fields. Hikal is following stringent quality standards and its sites are approved by USFDA. In last financial year company’s  performance was dismal due to adverse currency fluctuation and lower demand scenario.Now things are improving and it came to growth path.For the nine month ended December quarter , HIKAL reported a sales of Rs.473 Cr and a net profit of Rs.39 Cr which is far better than last year.Considering the quality of management ,potential of the industry and scalability of business – HIKAL is a good BUY @Rs.269/- for medium to long term.

15 comments :

  1. Sir,

    Brittania is down today. One should hold or exit??? Plzz suggest.

    ReplyDelete
    Replies
    1. No opinion on every day swing of stocks

      Delete
  2. Dear VP,
    can we take fresh position in kingfisher airline? Any hope of turnaround in stock for log term.
    Thanks in advance
    Mahendra

    ReplyDelete
    Replies
    1. Not positive on this sector , Future of Kingfisher depends on many policies of govt and institutions - so difficult to comment.

      Delete
  3. Hi,

    The debt ratio is 1.83 for this company. The company has not shown a major growth in past few years and growth rate is less than 8%.

    Regards,
    Siva Sankar N.

    ReplyDelete
    Replies
    1. I don't think share price is a reflection of past growth , I am bothered only about future.

      Delete
  4. Sir,
    Please comment on Prakash Industries.. Anything wrong that it is everyday falling from 61 the recommended price to 45, should we continue to hold, or sell?
    Regards
    Sakharam

    ReplyDelete
    Replies
    1. Dear Sakharam

      I have mentioned the major risk factor in Prakash is related with the outcome of the enquiry on Mining scan.Nothing new has happened so far .Hope it will recover.

      Delete
  5. DEAR VALUE
    DO U BELIVE THAT ZEE LEARN IS A LONG RACE HORSE?
    PATIDAR

    ReplyDelete
    Replies
    1. Dear Patidar

      Entry of many new players into this sector may be a problem going forward.

      Delete
  6. Dear Valuepick,

    I am an ardent reader of your blog spot. My methodology of stock picking is based on value and growth.
    I would like your opinion on Zydus wellness, since at present it is at very attractive valuation.
    Eventhough it has limited products in market, have good amount of cash and debt free status , so can grow by inorganic way. Also raw material, palm oil used by company is at peak price. Can it be gud bet for 3 to 5 years perspective ?

    thanks.....

    ReplyDelete
  7. What you said is the main problem of the company-Limited products and increasing completion in this.Expecting the new MD ( with vast experience in FMCG Sector)can do something .May consider around 300-320 range in small lots.

    ReplyDelete
  8. pl comment on deccan gold mines

    ReplyDelete
  9. pl comment on Sahara housing finance the stock has moved from 85 to 145 in a months time, all time high was around 1400. can i buy ?

    ReplyDelete
  10. Dear Sir,
    pl comment on Tide water oil , equity of 87 lakhs and very high reserve of 259 crores. can i buy @ 7225

    ReplyDelete

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