Jefferies initiates buy rating on the stock with 1500 TP
http://www.financialexpress.com/article/markets/indian-markets/buy-rating-on-strides-arcolab-strides-unique-business-model-likely-to-yield-the-company-dividends/142308/
Strides is looking to raise 1500crore
http://www.businesstoday.in/current/corporate/strides-arcolab-to-raise-up-to-rs-1500-crore-via-various-market-instruments/story/224161.html
Where does it say 8k miles promoters have reduced their stake?
http://www.sharekhan.com/CMT/Upload/NewsLetter/Report/InvestorsEye-May18_15.pdf
Info from May 2015 report
Minocycline: Torrent Pharma purchased an antibacterial drug, minocycline tablets and capsules, in the USA, which was divested by Ranbaxy Laboratories (Ranbaxy) under the direction of the US competition commission (as a condition of merger with Sun Pharmaceutical Industries). The market size of the product is pegged at $700 million and Ranbaxy held a market share close to 27%. Torrent Pharma has already launched this product in April 2015.
DRL has launched Nexium. I have been reading different numbers on market size of Nexium. Is $5bn post generic-isation?
Is there any update from AGM ? Is it good price to enter after becoming 7 beggar in last 1 year.
As far as i know, QIP money is utilized only to extent of Rs. 16 crores and that too for repayment of debt. Rest all QIP money is parked in liquid funds. I had been to AGM and had personal discussion with CEO, QIP funds would be used for
1. launch of new products like "Indian Terrain Boy", they are planning to also start selling of other men's accessories like "Shoes". So funds will be used for design, product development etc.
2. Advertisement campaigns, they soon are coming up with TV ads.
3. Repayment of long term debt which they have already done and now long term debt is NIL.
On business front, they are confident of increasing their top line by 12-15% and EBIDTA margin by 150-200 bps. That should give decent growth of 25-30% in EBIDTA and added with reduction in long term interest cost of nearly 1.5-2 crores should help achieve PAT increase of 35-40%.
CP touches 350.Seems post AGM it has caught the attention of investors and analysts.Also the warrant issuance overhang gone.Stock is getting rerated.
How big is the opp size?only 600 crore as mentioned in BT or could it grow to more?
What are your thoughts on KSCL at this price? We had two bad monsoons in a row, and next one is predicted to be bad, which adds to the market's dis-illusionment on KSCL. Adding to it, the uncertainty around how the monsanto relationship is going to play out, has kept the stock cheap, at 10x earnings now. (Though some level of aggressiveness in E of the PE).
I know you used to own the stock, and sold at a 20x. How do you feel now?
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HIL has been quite an enigma for me - company delivers decent results but no one seems to care because of the asbestos overhang. I cut my exposure at about 680 and hold a smaller quantity not because I do not believe in the business but because of my conviction that the valuation gap will never get corrected as institutions stay away from this stock because of the asbestos overhang.
on PVC, at theri scale, I see no reason - infact, CFO told me last year they did about Rs. 35 Cr. and this year they will do Rs. 70 Cr. or so without too much effort.
discl : invested but trimming.