Which will be next money making machines in Pharma Sector

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by kharb, Aug 18, 2015.

  1. Fun_Da_Mentalist

    Fun_Da_Mentalist Active Member

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    If you are talking of multibaggers, I would not look beyond granules india or shilpa Medicare. Shilpa has better barriers for the long run but granules appears to be more efficiently managed from a financial perspective, but very marginally.
     
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  2. abhimundra

    abhimundra New Member

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    Multibaggers... Suven and Granules appear to be great picks.

    Disclaimer: I hold Suven in my LT portfolio.
     
  3. rfq5151

    rfq5151 New Member

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    Pharma has always been considered as a defensive sector and was never the choice for the growth hungry investors.Recently due to positive news and lot of media attention I guess the sector has turned around lot of heads and now been perceived as a growth sector and better choice even above IT sector.

    To play the pharma growth story I would think that of the total allocation,70% should be put in pharma large+mid caps MF's and rest 30% should be distributed among 2-3 stories that are already discussed here and are considered as 5X or 10X multi baggers stories.

    Suggestions invited.

    Ps - I am planning to allocate some capital to the pharma companies very soon.
     
  4. jarmoney

    jarmoney New Member

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    I think valuations are prohibitive. Granules and JB Chemicals look okay.
     
  5. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    Pharma is considered as a defensive sector but valuations are high at this level
    correction is needed in pharma
     
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  6. Fun_Da_Mentalist

    Fun_Da_Mentalist Active Member

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    Among the larger ones, Aurobindo is an excellent play. Among the midcaps, I like Granules and Shilpa. Shilpa might appear expensive at first glance, but a more detailed study will show that the revenue pool they are addressing, and clear product pipeline growth till 2028 justifies it. Of course, the stock has run up really sharply in the first half of this year. But from a four year + horizon I cant think of a better place to park a part of my money. Happily, apart from being a superb growth stock the management has shown they are not averse to giving bonuses as well.
     
  7. Fun_Da_Mentalist

    Fun_Da_Mentalist Active Member

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    Report by Karvy on Shilpa
     

    Attached Files:

  8. kharb

    kharb Well-Known Member

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    Yes we have got good response. Granules- backed by 10 members. Shilpa - backed by 6 members. JB Chemical- backed by 4 members. Suven- backed by 4 members Ajanta - backed by 4 members. and many other stocks backed by two or individual members.We shall keep on reviewing performance and backing of stocks in future.Please keep on recommending new or existing to further filtering or updating process.I would like that this thread help in identifying good Pharma stocks for benefits of all.
     
  9. Rahul Arora

    Rahul Arora Member

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    Granules...jubilant life....mangalam drug...Lincoln pharma....anuh pharma....
    ...but in pharma u have to make a basket of stock.....never depend on anu particular stock as no one knows what will happen in future for dat co from USFDA... see d fate of Wockhard...
     
  10. Fun_Da_Mentalist

    Fun_Da_Mentalist Active Member

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    With respect to granules India; based on a Wikipedia search I found out that it was incorporated in 1984 as Triton Laboratories. Subsequently, much later, Granules India was established. What happened to Triton? I want to get to the bottom of this to see if this can give us some insight into ownership integrity.
     
    Last edited: Sep 27, 2015
  11. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    Dear Fun_Da_Mentalist ,

    Source :https://economictimes.indiatimes.com/granules-india-ltd/infocompanyhistory/companyid-6991.cms

    HISTORY AND BUSINESS OF THE COMPANY

    Granules India Ltd (GIL) was incorporated as a Private Limited Company on March 16, 1991 and was later converted into a Public Limited Company on February 8, 1993. GIL commenced its operations in April 1991 as a merchant exporter of bulk drugs like Paracetamol, Guaifenesin and Chloro Pheniramine Maleste. It has been exportingmainly to the developed markets such as U.S.A., Europe, Mexico and Hongkong. Since 1992, GIL concentrated on export of Paracetamol powder, which was procured from a Group Company, M/s.Triton Laboratories Pvt Ltd (TLPL), a small scale unit. In 1993-94, the international prices of bulk drugs like Paracetamol were under pressure and GIL decided to enter into value added areas.

    In April 1993, GIL also joined as a partner of M/s.Triton Laboratories (TL), a partnership firm promoted by the promoters in 1985. After GIL became a partner. TL crested facilities for manufacture of DC blends of Paracetamol and directly entered into its export market. Later, TL decided to diversify into manufacturing of bulk drugs and started implementing a project for the same. In August 1994, as part of consolidation and restructuring the Group's operations. TL was dissolved and its assets and liabilities were taken over by GIL at book value. The assets were independently valued by Shri S.Deshpande, Chartered Engineer and approved valuer.

    (Rs.lakhs)
     
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  12. Fun_Da_Mentalist

    Fun_Da_Mentalist Active Member

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    Thank you. Clearly it was all done with no apparent malafide intent, if it was absorbed into Granules India. Thank you for clearing up this lingering doubt in my head since last evening. This makes me more comfortable.
     
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  13. kharb

    kharb Well-Known Member

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    Granules India is recommended by maximum persons here and also backed by large no of analysts.Although I am not expert in Pharma ,but my only worry is its Popularity. What is view of other friends on Granules India and my worry on its popularity. Market Gurus always advise against popularity.
     
  14. Sachin pathak

    Sachin pathak Active Member

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    Aurobindo still better than granules....though granules i have bought recently alongwith FDC ( both stocks returning over 30% in less than two months)

    Aurobindo is already a 10x + for me
     
  15. Sachin pathak

    Sachin pathak Active Member

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    The sad part about pharma is that it prospers at the sickness of the human race......

    So one way to going about researching pharma companies is identifying what are the major illnesses prevailent and likely to be so (afflict only more humans - like hypertension, cancer, diabetes, pain) and go for companies which manufacture drugs for these
     
  16. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    Yes you are correct , many quality companies are there like Lupin , Sunpharma , Novartis ,Pfizer , Sanofi ,
    Glaxo smith ...Top class management companies are available but we should buy at reasonable values in corrections ..
     
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  17. SUNNY

    SUNNY Member

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    If everyone is recommending granules then investors be cautious, go for company which is not in limelight and have potential to grow.
     
  18. Sachin pathak

    Sachin pathak Active Member

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    LAUGHTER IS THE BEST MEDICINE!!!

    So be in the 'company' which produces and promotes laughter.

    Its the best pharma company.

    All other make profit from the illness of the human population
     
  19. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    JB Chem has touched Rs. 310 :) I TOLD YOU!!
     
  20. shakti khanduri

    shakti khanduri Active Member

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    But,Sir, how much correction is required for Margin Of Safety? This has always been a question before me.
     
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