views on poly medicure & JB chemicals (for long term)

Please share your views on Poly medicure....
my one concern is high salary to its promoters...Last years PAT was around 40 crores and their top 2 director are fetching a salary about @7 crore...
Its a continuous growing company and showing good ROE, sales growth, PAT growth....

And 2nd company on radar is JB chemicals and Pharma...
Decently valued and consistent growth for this company....profit margins are increasing...very old company so having a good experienced management....

Please share your views for these two companies for long term perspective...

 

JB CHEM is a good company. Go for it. It has corrected to 256 levels as of yesterday..Good management with consistent growth. With good Q3 you will see a 330+. Already this script has been discussed in older threads. Pls read. NB: I am invested in JB.Poly medicure- I will comment later.

 

100% agreed. JB Chem is good stock. Here is report from Reliance Sec projecting target price of Rs. 330 with good reasoning:

"JB Chemicals (JBCPL)’s 2Q result beat our estimate on the profitability front boosted by higher other income (sale of investment). Sales were muted on the back of weak export formulations (impacted by currency headwinds in ROW markets). India formulations (12% yoy) and Russia (up 35% yoy) performed in line. Reported margins at 17.3% (down 180bps yoy, up 90bps qoq) were in-line with our assumption of margin recovery from 2Q onwards led by tender sales. We draw comfort from company’s steady performance and healthy free cash generation and maintain BUY with a Target Price of Rs 320.

Outlook and Valuation In order to tap the potential opportunities, JBCPL has undertaken an expansion program at its facilities for manufacturing lozenges, Diclofenac API, tablets, etc. It has guided for a capex of Rs1.4bn for a new facility over the next 12-18 months. The capex will be met through internal accruals. With outstanding cash balance of Rs5bn, which forms ~44% of the capital deployed, we expect a significant improvement in its return ratios at 18-20% over FY15-18E. We expect 15%/19% CAGR over FY15-17E for sales/APAT with steady improvement in margins.

At the CMP, JBCPL trades at 12.1x its FY17E earnings. Given the attractive valuations, we maintain BUY with a Target Price of Rs 320., says Reliance research report."

Read more at: https://www.moneycontrol.com/news/r...ecurities_4122921.html?utm_source=ref_article

CD Equisearch has also reco a buy:

JBCPL’s wide geographical presence in international markets and strong product portfolio with high growth brands and strong marketing capability gives a positive outlook for overall business of the company. The company has crossed the iconic milestone of Rs 1000 cr sales mark in FY14. The company has embarked on to the next phase of journey in July 2011, post sale of the Russia-CIS OTC business, and the company has made a comeback in just three years by effectively focusing on growth markets internationally. The supply agreement with Cilag GmbH International (‘Cilag’), a wholly owned subsidiary of Johnson & Johnson, has been functioning smoothly.

The increase in per capita income, and in turn the increase in per capita consumption of drugs, improved healthcare access and increasing health awareness are expected to continue to aid growth opportunity in domestic formulations business. As successful penetration into new markets will accelerate the next level of growth, the company believes that its well established brands will be the strong pillar around which the company will grow.

The international business poses challenges, such as increased competition, rapidly changing regulatory environment and increasing span of price controls in some markets. However, the company is optimistic about its good growth prospects.

The R&D division of the company continues to play an important role in the company’s growth. Its R&D is currently focused on the new formulations development and ANDAs filings. The company has enhanced its focus on US market and plans to file new ANDAs and is also considering backward manufacturing of APIs used in these ANDAs to make the business more profitable. JBCPL has envisaged capex of Rs140 crs to be spent in next 12-18 months. This capex is progressing as per schedule. The consolidated income from operation in FY15 registered a growth of 12% YoY. The political situation in Russia and Ukraine and depreciation of rouble against US dollar also impacted the business. The situation has improved in these markets after April, but the company is cautiously watching the developments in these markets. The company has around Rs 568 crs (Cash + Investments) as on FY15. The company does not plan to invest this money in haste and will invest it when the right opportunity emerges.

"The company has a consistent, strong free cash flow annually, with a low debt-equity of 0.1x. With the commencement of the sales and distribution of products from its wholly owned subsidiary in Dubai, we expect revenues and profit to grow at a CAGR of 13.5% & 20.0%, respectively over 2015-17. The stock at the price of Rs 270 trades at 17.4x FY16e earnings and 13.8x FY17e earnings. Strong traction in domestic business & expansion of capacities will drive future growth. Therefore, we recommend BUY on the stock with target of Rs 333 based on 17x FY17e earnings, (PEG Ratio 0.85), over the next 9-12 months", says CD Equisearch report.

Read more at: https://www.moneycontrol.com/news/r...quisearch_1404235.html?utm_source=ref_article

 

thanks dear.....
Please share your views on polymedicure also....
I am having Vivimed Labs in my portfolio from Phrama space and i want to change over it to another pharma stock....

 

Poly Medicure Stock was in demand when zee business said that owing to highly polluted air in Delhi demand for Air purifiers are likely to increase and since Poly Medicure is one of the leading manufacturers of Air purifiers its stock may go up. Same happened. Poly Med moved from 329 to 333. Next day it fell to 325. On 11/12/2015, it is 327.40

 

so how is it for long term view...its balance sheet is looking gudd...

 

What other Pharma stocks you have in portfolio? Poly Medicure is small cap with PE of 31x which is not cheap. Also growth has become stagnant it seems. It has given loss of 26% on one year basis. I think Ajanta may make good scope now after correction. It is one of my fav stocks. PE is high at 32 but company has good plans for expansion. Torrent Pharma is also a good stock with PE of 13. It is also a safe stock with good management, products, etc.

 

Some stocks show new based strength. If there is any good news (/or even rumor) they start rising and then they fall (or some times even crash). I think Poly Med is one such.

 

Thanks Srouta...at present i am having only Vivimed labs from pharma space..i bought this at 180 and now it is trading around 420 level...should i exit from this or hold...

 

Congrats. Poly Medicure is in UC of 20% today. Hope you bought big quantity and became very rich

 

no dear....i was planning to buy but not getting positive review from some people....but now i learned that go with your own conviction...."Suno sabki karo mann ki"

 

Today i totally exit from DB Corp and accumulate Sudarshan Chemical and Pantaloons Retail more...