Which will be next money making machines in Pharma Sector

Very good point. In waiting for correction juice is gone. Best start SIP if convinced of fundamentals.

 

It is Vary stock to stock , it is depend on quality of that stock , generally we will get low margin of safety in a quality stocks like ex : Glaxo pharma , Hind Uni Lever etc....
we may get margin of safety some less comparatively to other ordinary stocks

 

Similar is my response with Aurobindo Pharma .Granules India is a good scrip but that every knows. AS of now I dont expect Aurobindo like response from Granule- but a lot depends on what steps management takes in future to take company forward.As regards safe investment in well recognised companies like Glaxo etc, not much of safty is required. Not much price appriciation is expected by me as their positivity is already factered in- who does not know these are good ones. But how to quantify MOS in not so good companies. How much correction ensures MOS -I am frequently faced with this question.?Members views are solicited .

 

Arriving a margin of safety is very subjective as is also not easy at all.

You need to be privy to a lot of information which may not necessarily be in the public domain. Plus complex valuation models which tend to be usually proprietary.

That is why you have global consultants / banks (corporate finance experts) / brokerages who carry out the thriving valauations business.

 

Dear Experts,
A lot of Pharma Companies really rocked in the recent weeks as: Granules(151), Lincoln(160), Jubilant Life(394), Shilpa Medi(954) & SMS Pharma(740). Whether the current cmp's are comfortable to HOLD on long term point of view, at least 1 to 2 years?

Regards
Kris

 

Any good pharma company if already invested into is a hold at the moment

 

Check JB Chem. It has dividend yield of 4.65% + huge cash on books. See advice of Chokkalingam:

In the pharma midcap space, we aggressively buy JB Chemicals; it is available at 10 PE on one-year forward earnings basis. The company is sitting on cash pile. The company has around Rs 500 crore cash while debt is as low as Rs 100 crore. These are the two stocks we like in the pharma space.

https://articles.economictimes.indi...s-research-advisory-pharma-space-jb-chemicals

 

I have already bought Granules, Lincoln, Jubilant life & Syngene Intl - and hope I could HOLD them at least for an year... Thanks Sachin Sir

 

MY JB CHEM IS 6% SHILPA IS ALSO UP 6%. I TOLD YOU CAN"T LOOSE WITH PHARMA. Pl see
POWER OF PHARMA !! Period (2008-2015); 7 years of WEALTH CREATION !!

https://rakesh-jhunjhunwala.in/foru...iod-2008-2015-7-years-of-wealth-creation.449/

 

CHOKKA LINGAM advice 100% correct

In the pharma midcap space, we aggressively buy JB Chemicals; it is available at 10 PE on one-year forward earnings basis. The company is sitting on cash pile. The company has around Rs 500 crore cash while debt is as low as Rs 100 crore. These are the two stocks we like in the pharma space.

https://articles.economictimes.india...s-research-advisory-pharma-space-jb-chemicals

 

Alkem has made money for investers of IPO.Will it still make money for investers who will buy it from secondary market now? Form members, what are your views.Is it still a good investment?

 

I bet on Aarti Drugs. It has low equity 2.4 crs and good growth. only draw back is debt .
have positions in it if any body wants to invest please do thorough research and take decision.

 

FDA ISSUE issue is still to be resolved, in my knowledge.

 

In Pharma sector We always need to cross check as per Madhuri Song- Choli ke piche kya hai.I mean FDA ka issue kya hai ! Or it is like old song which FDA seems to be singing for many Pharma compnies-Tu Jahan Jahan Chalega,Mera Saya Sath Hoga.

 

Shilpa Bhabhi will be mega wealth creator in the next decade.

Oncology is the next big thing. Accumulate at every dip. Patience will pay.

 

How much dip, a valid question if aim is to get multifold returns ?

 

Don't you think it's expensive at 40x TTM PE. Earnings growth in the last few quarters is also just around 10%. What's the story here apart from the long term oncology market opportunity? Thanks.

 

The real story will start after 2018. After it receives most of its awaited FDA nods.
In my personal opinion this is the ideal time to accumulate. Only for long term players.

 

I see. So if the catalysts are over two years away, it might be worth waiting for a while before investing in this stock. In fact the price might correct if Earnings growth continues to be anaemic. The stock just appears to be a bit pricey to me right now, implying limited scope for multiple expansion.