Orchid Chemicals is a stock I recommended at higher price few years back . Later its financials worsened and stock price crashed to lower level due to its mounting debt.Company was trying to reduce debt through a CDR package but it delayed for a long time .Even without implementing CDR , company turned to EBITDA positive in latest quarter.Now CDR package approved by the lenders ( Read the details HERE). With this approval company can now complete the deal with Hospira ( Sale of Orchid's active pharmaceutical ingredient (API) manufacturing facility in Aurangabad, Maharashtra, and an associated research and development (R&D) facility in Chennai which is pending since August 2012 ) , and concentrate in other existing business (antibiotics API and oral formulations),and niche therapeutic products. On sale of this unit company is expected to transfer 30 % of its business ,but profitability will improve due to reduction in debt and availability of much needed working capital. Considering company's strong R&D pipeline ,I believe company can regain the reduced business in another few years .Recently U. S. health regulator Food & Drug Administration (FDA) inspected its Irungattukottai, Chennai-based oral formulations facility and approved it without any observations. Those with some risk appetite can BUY and HOLD this stock for long term.Stock is currently trading @ Rs.49
Link to Company website : HERE
Link to latest Annual Report HERE
Disc : I have vested interest in Orchid Chemicals.