upcoming IPO Alkem and Dr Lal labs

Hi friends, what is your view regarding the upcoming IPO Alkem and Dr Lal? Apply or avoid share your views..

 

Strong growth and fair valuation make Alkem Labs a good bet

The issue values the company at 19 times its FY16 estimated earnings per share of Rs. 55 per share. The company's valuation of Rs. 12,600 crore also stands at 2.5 times its revenues for FY16. These are fair valuations when compared with peers like Torrent Pharma, Ipca Labs and Wockhardt, leaving room for post listing gains.

Read more at:
https://economictimes.indiatimes.com/articleshow/50004130.cms

 

will apply for both of them

 

Lalpath labs is too greedily priced. Mah not leave anyghing on the table for listing gains.

 

Here are three things to look out for in Alkem Labs:

1) Strong presence in the industry:The pharma company is the fifth largest in the country and generates 75 per cent of its revenue from domestic sales in contrast to its peers, whose revenues largely depend on the US generic market. Alkem currently stands as the leader in the largest therapeutic area, with a market share of 11.2 per cent, and is third largest in the gastro-intestinal and pain/analgesics therapeutic areas.

Its products were prescribed by 210,885 customers in FY2015 and its distribution network includes 39 sales depots, 55 clearing and forwarding (C&F) agents, 15 consignees and eight central warehouses covering 6,576 stockiest. The company has a strong pipeline of products under development for the focused markets.

2) Expanding presence in the US:The company has been expanding its presence globally through organic growth and strategic acquisitions. TheUS marketremains its primary focus, notes brokerage house Sharekhan. The company sells its product in the US under the brand name of Ascend.

"Ascend currently sells 17 products in the market, out of which 12 are own products and five are in-licensed from third parties. Revenues from its international operations have grown at aCAGRof 45.7 per cent between financial year 2011 and 2015," Sharekhan said. The contribution of international operations to its net revenue stands at 25.3 per cent as of 2015.

3)Valuation:In the price band of Rs 1,020-1,050, the issue is priced at 26-27 times the company's price earnings (PE) ratio for FY2015, which is at discount to its listed peers like Cadila, Lupin and Torrent. On an EV/Ebitda basis, it is offered at 24.8-25.5 times EV/Ebidta for FY2015 (15 times on FY2016 annualised Ebitda), which is in line with the listed comparable companies, Sharekhan noted.

"The company has shown significant improvement in its growth trajectory and margin profile in the first half of FY2016, which makes it appear relatively attractive if the company is able to maintain the growth momentum and sustain higher margins," the brokerage said.

https://economictimes.indiatimes.co...tors-to-look-out-for/articleshow/50023204.cms

 

already at a good premium in the grey markets, gotta wait to look at the subscription figures when the issues open
i'm considering the event of the US Fed rate hike between the offer and listing which could affect both the issues

 

Dr. Lal Pathlabs Limited has proposed a Initial Public Offer (IPO) between December 08 - December 10, 2015.
Company Name Dr. Lal Pathlabs Limited.
Issue Period

December 08 - December 10, 2015.

Price Band
Rs. 540/- – Rs. 550/- per equity share.

Retail Discount Rs. 15/- per equity share
Lot Size
20 shares & in multiple of 20 shares thereafter.

Issue Size Rs.632 cr. at upper price band
Face Value Rs.10 each.
Listing To be listed on NSE & BSE.
Who Can Invest Resident Indian individuals, HUF, Companies, Corporate Bodies, Scientific Institutions, Societies and Trusts, NRIs, FPIs.


Highlights of the Company

• Dr. Lal Pathlabs Limited is provider of diagnostic and related healthcare tests and services in India.
  
  
• Companies customers include individual patients, hospitals and other healthcare providers and corporate customers.
  
  
• Company is capable of performing substantially all of the diagnostic healthcare tests and services currently prescribed by physicians in India like “routine” clinical laboratory tests, “specialized” testing services & preventive testing services.
  
  
• Company has over 3,495 diagnostic and related healthcare tests and services offered.
  
  
• Company has a national, “hub and spoke” network that includes National Reference Laboratory in New Delhi, 171 other clinical laboratories, 1,554 patient service centers and over 7,000 pickup points as of September 30, 2015.
  
  

Company Profile

• Total consolidated revenue as on 31st March 2015 INR 6,625.24 million.
  
  
• Consolidated Net profit after tax for the year ended 31st March 2015 INR 949.97 million.
  
  
• Consolidated Return on Networth as on 31st March 2015 is 27.85%.
  

View Prospectus

 

Thumbs up to both IPO ,Alkem followed by Dr Lal path.

 

Strong growth and fair valuation make Alkem Labs a good bet
Mumbai-based Alkem Labs is the local market leader in anti-infectives. It earns three-fourths of its revenues from India – a significant portion of it coming from West Bengal, UP and Bihar.

By Kiran Somvanshi

ET Intelligence Group: Mumbai-based Alkem Labs is the local market leader in anti-infectives. It earns three-fourths of its revenues from India - a significant portion of it coming from West Bengal, UP and Bihar. Its top 20 brands contribute over half of its total domestic revenues.

Over 40% of its portfolio comprises acute therapy products, which typically are the most penetrated and low-margin in nature. Marketing acumen and lowcost (brands) have been the company's unique selling points. Alkem's international business is building a pipeline of products for approval in the US.

Alkem is a debt-free, profitable company with double-digit growth. In the past three years, it expanded inorganically, taking a toe-hold in the US and beefing up presence in the market for lifestyle disorders.

These investments took a toll on profitability, pushing down operating margin to 12-13% from 16-17%. The margins are likely to improve steadily as the investments start accruing returns. But, the risk profile of Alkem's is likely to increase as share of its regulatory-driven international business rises in total revenues.

VALUATIONS

The issue values the company at 19 times its FY16 estimated earnings per share of `55 per share. The company's valuation of `12,600 crore also stands at 2.5 times its revenues for FY16. These are fair valuations when compared with peers like Torrent Pharma, Ipca Labs and Wockhardt, leaving room for post listing gains.

https://health.economictimes.indiat...valuation-make-alkem-labs-a-good-bet/50005719

 

applied for both of em an hour ago
let's see if get any allotment or boom

Dec 20 - text alerts from Link Intime - no allotment, refund on Dec 23