POWER OF PHARMA !! Period (2008-2015); 7 years of WEALTH CREATION !!

Copied from post by kkammannaya in MMB

https://mmb.moneycontrol.com/india/messageboardblog/message_thread/31077519/32877519#m32877519

POWER OF PHARMA !! Period (2008-2015); 7 years of WEALTH CREATION !!

MY DOSE OF INSPIRATION TO ALL INVESTORS, particularly investors in the PHARMA sector, and more so in the MID & SMALL CAP Pharma Cos !!

Dear Friends, I present to you few LARGE CAP Pharma Cos and their performance, since 2008 till now (7 year period) :: You will be ASTONISHED !!

1. DR REDDY – Rs 387 in 2008 to now CMP – 3547.90.

So investment of Rs 10,000 in 2008 would be today – Rs 91,677 !! ( More than 9 times in 7 years !! )

2. SUN PHARMA – Rs 890 in 2008 to now CMP – Rs 972.95. Meanwhile, stock split from FV 5 to 1 and bonus of 1:1 in 2013; So, if you bought 1 share at Rs 890 in 2008, you would have 10 shares at Rs 972.95 today.

So investment of Rs 10,000 in 2008 would be today – Rs 1,09,320 !! ( Almost 11 times in 7 years !! )

3. LUPIN – Rs 430 in 2008 to now CMP – Rs 1833.25. Meanwhile, stock split from FV 10 to 2 in 2010; So, if you bought 1 share at 430 in 2008, you would have 5 shares at 1833.25 today.

So investment of Rs 10,000 in 2008 would be today – Rs 2,13,168 !! ( More than 21 times in 7 years !! )

If LARGE caps can return about 10-20 times in 7 years, then WHAT ABOUT SMALL/MID CAPs ?

Now, let us look at other PHARMA stocks that were SMALL/MID CAPs in 2008 ::

1. TORRENT PHARMA – Rs 112.15 in 2008, TORRENT PHARMA was a 950 CR market cap Co to now CMP – 1208.70 today. So if you bought 1 share at Rs 112.15 in 2008, you would have 2 shares (bonus 1:1 in 2013) at Rs 1208.70 today.

So investment of Rs 10,000 in 2008 would be today – Rs 2,15,550 !! ( More than 21 times in 7 years !! ).
2. GRANULES INDIA – Rs 28.20 in 2008, GRANULES INDIA was just a 57 CR market cap Co to now CMP – 83.80 today. So if you bought 1 share at Rs 28.20 in 2008, you would have 10 shares (split from FV 10 to 1 in 2015) at Rs 83.80 today.

So investment of Rs 10,000 in 2008 would be today – Rs 2,97,163 !! ( Almost 30 times in 7 years !! )

3. NATCO PHARMA – At Rs 38 in 2008, NATCO PHARMA was just a Rs 128 CR market cap Co !! to now CMP – 2213.70 today. No stock split or bonus meanwhile.

So investment of Rs 10,000 in 2008 would be today – Rs 5,82,552 !! ( More than 58 times in 7 years !! )

4. AUROBINDO PHARMA – At Rs 101.60 in 2008, AUROBINDO PHARMA was a Rs 588 Cr Co !! to now CMP – 1374.95 today. The Stock split from FV 5 to 1 in 2011. So, if you bought 1 share at Rs 101.60 in 2008, you would have 5 shares at Rs 1374.95 today.

So investment of Rs 10,000 in 2008 would be today – Rs 6,76,648 !! ( More than 67 times in 7 years !! )

5. AJANTA PHARMA – At Rs 48.50 in 2008, AJANTA PHARMA was just a 57 CR market cap Co, to now CMP - Rs 1579.65 today. Meanwhile stock split from FV 10 to 2 and a bonus of 1:2. So if you bought 1 share at Rs 48.50 in 2008, you would have 7.5 shares at 1579.65 today.

So investment of Rs 10,000 in 2008 would be today – Rs 24,42,757 !! ( More than 240 times in 7 years !!!!!!!!! )

Dear Friends, DO THINK IT OVER !! Such returns cannot be thought of anywhere.

PHARMA will always be EVERGREEN, as we will always need life saving drugs, newer drugs and better drugs !! The sector will remain evergreen forever !!

Also NOTE :: SMALLER THE CO, GREATER THE GROWTH & HENCE RETURNS !! Which is as expected obviously. SMALL caps grew to be MID caps & MID caps into LARGE caps !!

Good luck to all the investors !!

Best Regards
KKAMMANNAYA

 

Really amazing tp know......please keep posting this type of posts.It will give us confidence in Pharma sector as well as we will learn to invest, not to trade in stock market.Thanks

 

Amongst all, Ajanta Pharma has an edge over all others - has room to double from here too in less than a years time

Torrent Pharma has tremendous support from FII / DII and HNI shareholders - it is the best innovative pharma company - tremendous growth prospects

 

Taking a 10 year buy & hold view, which micro/small/midcap pharma has 10x+ potential? why?

 

Four i can count are: Granules, Suven Life Sciences, JB Chemicals and IPCA Labs. Glenmark can be included in this if if it can be considered as a mid cap.

 

I will also add Marksans Pharma to the list....

 

On Which pharma company u wish to invest now?? target of 5 years time

 

Look at Mangalam Drugs & Organics.....stock price tripled in last 2.5 months....even in today's carnage, stock closed in 15% up and at 52 week's high....in last interview, management expressed "they are awaiting World Health Organisation (WHO) approvals for new malaria and HIV molecules"....insiders whisper is that they are going to get it very soon....and that is going to b the big news.....company is extreemly cheap in valuation wid P/E = 11.32, P/BV=2.42 only, posted good result too....Please share your view regarding this.

https://www.moneycontrol.com/news/business/aim-for-20-revenue-growthfy16-mangalam-drugs-organic_1388409.html

 

Another small cap pharma doing very well is Astec Lifesciences....posted extreemly good result...cheap too ...P/E = 24.73, P/BV = 2.80,...market is also rewarding it.....closed today at 4% up even in today's free fall market.....please share your views regarding this....

 

Excellent research keep posting such reports to boost investors confidence in pharma.

 

HI
Happy to c dat Mangalam Drugs & Organics rocking even in a free fall market....yesterday it hit its life time high and closed at 18% up....Co. is turning around....posted very good result....mouth watering valuation...Some big announcement is going to happen any day regarding getting approval from WHO for some Aids and malaria molecules....what else r u looking for????...i am convinced....waiting for other's view too..

Co.'s last 5 years result link...
https://www.moneycontrol.com/financials/mangalamdrugsorganics/results/yearly/MDO#MDO

Management's comment on approval from WHO for some Aids and malaria molecules link
https://www.moneycontrol.com/news/business/aim-for-20-revenue-growthfy16-mangalam-drugs-organic_1388409.html

 

But sir now suven is runing dowantrend??it was draged from 338 to 221 in just 2 months?????

 

Before we invest in any company, we must look the management... Granules india got younger person ...i.e founder s son... Under his leadership, company got huge change which brings lot of growth points... In case of suven , companies leadership s under 65 yrs old jasti... Dont know when he wil bring the right person as his heir to the top management... So it s also valid point in my view before we invest for longer term

 

PHARMA will always be EVERGREEN, as we will always need life saving drugs, newer drugs and better drugs !! The sector will remain evergreen forever !!

Also NOTE :: SMALLER THE CO, GREATER THE GROWTH & HENCE RETURNS !! Which is as expected obviously. SMALL caps grew to be MID caps & MID caps into LARGE caps !! I like this

 

Can u plz share ur views about anuh pharma?....the stock is buzzing for last few months...plz give a 360 degree views wheather it is a candidate for investment for say 4-5 years?...

 

What about jubilant life science and anuh pharma? Looking to invest for 3 to 5 years.

 

What about Bliss GVS? Anybody tracking or invested in it?

 

I have strong conviction in Shilpa Medicare and Granules India.

 

Awesome post!!!!..

Before diving into stocks, can we look at sectors that have the potential to produce multi baggers over the next 5-10 years?.

 

Financial services normally grows at 3x GDP. Given how Indian GDP is expected to grow, this sector is a must have.

Increasingly drugs are going off patent. When they go off patent, prices crash by around 80 percent. Therefore, the production cannot continue in the advanced markets. India has the right ecosystem to leverage this shift. Indeed, even as of now we have the largest number of FDA approved facilities outside of the U.S. The FDA has doubled no of FDA inspectors for India.

The ratio of mortgages to GDP is around 8 percent in India. China is around 38 percent, HK around 100 percent. The headroom is unbelievably large in housing, housing finance and housing related construction and accessories.