PTC India Finance Ltd: A compelling option! – BUY 25-30% pa loan growth sustainable without taking undue risks Portfolio concentration a key risk, but is gradually receding Healthy lending franchise available at valuation of a PSU Bank |
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Symphony Ltd – Call Success We had recommended a BUY on Symphony Ltd in our Diwali Dhamaka Report released on November 10, 2015 for a target price of ₹2,554. The stock has touched our target in today’s trading session yielding a return of 31% from our recommendation price of ₹1956. Though we remain bullish on the company’s earnings growth, we believe upside would remain capped and the company is fairly valued at current price. We advise investors to Book Profit. |
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Glenmark Pharmaceuticals: A dose of growth – BUY Glenmark is set to capitalize on strong US pipeline with key upcoming launches like Zetia (Dec’ 16) that would drive 29% revenue cagr for US business. We expect Zetia benefit to sustain beyond FY17E while new launches in derma (Finacea) would support momentum. An increased pace of approvals would likely cushion the pressure in base US business as seen from slower per ANDA revenues in recent quarters. Domestic business is likely to clock 1.5-1.8x IPM growth even as we note that launch of Teneligliptin has largely offset the loss from Sitagliptin suffered in H2 FY16; moreover, company has gained market share in key therapeutic areas like cardiac, diabetes and respiratory in the past 2-3 years. Emerging markets (Lat Am + ROW), especially Venezuela, have been the pressure point due to volatile macro and currency depreciation rather than any demand specific issue; that said, company would not deploy any significant investment in these markets and instead focus on US, India and Europe which would account for ~85% of FY18E revenues. We forecast ~18% revenue and 33.5% EPS cagr over FY16-18E on back of sustained momentum in India and healthy US pipeline and retain BUY for 1-year target of ₹1,000, based on 20x FY18E EPS. Importantly, Glenmark is amongst the cheapest in terms of FY18E PE multiples amongst large cap pharma universe which would limit potential downside in our view. Lack of key expected approvals and collateral impact on margins would be the key risks to our reco. |
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Safe growth stocks with limited upside with low margin of safety. Where will Symphony or PTCIF go if nifty goes to 6000?
One should try to pick Symphony at 2013….click on my pic for such stock picks.