I haven't spent a lot of time on this but here are a few observations being familiar with the Chandigarh/ Panchkula area.

The plot that they are developing in the Panchkula technology park was allotted to them around 2008. In the boom years of 2005-2008 , Chandigarh/Panchkul/ Mohali felt left out and the govt rolled put plans for setting up technology parks in the three towns. Except a mild response for Chandigarh from the likes of Wipro/Infosys, there was almost no response shown for Panchkula and Mohali. The main reason given then was that the city has no air connectivity and an IT company can't work without that. In those days you had to take a flight to Delhi and then take a Shatabadi train to Chandigarh station which is a few kilometres from Mohali/Panchkula. Chandigarh airport has since been renovated and gets around 20 flights a day today and from today it will also start getting international flights.

While this was going on, the bubble burst and even the mild response vanished. At this time, some of the local businessmen of the area moved in and plots esp in the Panchkula technology park were allotted to them. Most of these companies were real estate companies and had very little to do with IT. The plots were given to them with the undertaking that they will develop the plots within 8 years of allotment.This is the reason that you see a flurry of activity to finish projects in 2016.

I could be very wrong here but to me this whole BPO business looks no more than a front for real estate activity. They will in all probability put up a small BPO front end to meet the govt obligations. However, there are no takers for office property for lease at the moment in that area. There are prime office properties in the heart of Chandigarh/ Panchkula that have been lying vacant for years and no hope of any occupation in the near future. Therefore, servicing the loan that they have taken for this real estate activity with no occupants will be a challenge.

This group also has another group company called Amravati developers which was in deep trouble a few years ago. They had announced a township about 20 kms away from Panchkula and the response was very tepid. So please be aware that this group has their fingers in a number of real estate projects in and around Panchkula and not all of them are doing well.

Need to dig more into the laminates business. One unusual thing that stuck me was the the total wage bill of the company is Rs1.32 crs and the wages taken by the directors and the CS is around Rs 1.18 crs. This leaves around 14 lacs for the wage bill for all others. Even if you take the annual wage of a shop floor worker at Rs 1 lac , that caters for roughly around 14 workers. I couldn't see a line item where the workers could be contractors and the wages billed elsewhere. Where am i going wrong in the calculation?

Will talk to my local contacts and try to dig out more info.

Disc- Not invested.

Well i am no pundit but the above said funds definitely did well . Future is unpredictable, i guess you should give some time to both the funds to see how they perform in next 2-3 years and then decide.

Management Interview From Money Control

Mangalam: What according to you will be the key growth drivers for Anuh Pharma in FY16-FY17?
A: In FY17 we are introducing six more products; two are already under commercial trials. The existing products are also growing at the rate of about 20 percent on topline and 14 percent on bottomline. Moreover on capital expenditure we are already procured a plot of additional two acre connecting to our current facility. We will be putting up additional Rs 20 crore on the plant which will be commissioned on January 1st 2017.

Reema: Talking about your financials your margins are still low. Why is that and is there a scope for you to improve your margins?
A: The margin always depends on whether you are in a regulatory market or you are in a non-regulatory market. The margins are far better in a regulatory market and our focus is more on regulatory market. Our bottom-line for the current year, we expect to grow additional 40 percent over our last year’s bottom-line.

Mangalam: How much growth are you anticipating on the bottom-line for FY16 and FY17 then, for the next two years?
A: That will be at least Rs 30-32 crore. Rs 45 crore will be the profit before tax and you deduct the tax then it will come to around Rs 32 or 33 crore.

Reema: You also spoke about some additional capex of closed to about Rs 20 crore that you are putting in one plant would that be the Tarapur plant and totally what will the capex be?
A: We are going to fund the new capex from our internal accruals and our reserves only. We are sitting on a huge reserves of more than Rs 100 crore. Everything from internal accruals; no banks finance, no IPO- nothing.

Reema: Your cash on the books you said is Rs 100 crore, right?
A: Cash on books is more than Rs 60 crore because rest is invested in may be working finance or to an extent in a new project that is coming up.

Mangalam: What is your market share in India currently?
A: In India, we should be having about 8-9 percent of the Indian bulk drug production. Mangalam: What is the potential or possibility for you to scale that market share upto? A: It should go upto minimum 20 percent in next five years to come.

Reema: Could you also give us a sense about what your geographical breakup is? You have told us that the focus is a lot on regulatory markets?
A: Out of all the products that we manufacture about 45 percent is exports which is exported to 57 different countries. 55 percent is local sales.

Mangalam: In that case could you give us a sense of what the growth rate for both export and domestic market is? A: The normal growth rate is 15 percent but probably with the new products and the existing products that we manufacture we expect to grow at the rate of 20 minimum and 25 maximum percent.

Reema: What would your current capacity utilisation stand at and can you increase it?
A: Our current capacity utilisation is about 70 percent and we proposed to grow it at the rate of 20 percent because we have already inaugurated one new block in the existing plot. With that our capacity will also substantially grow but we definitely feel that we should grow our capacity utilisation by additional 20 percent year over year.

Mangalam: What is the market share that you have in your key products globally and how much can that increase by?
A: Our current market share of Erythromycins that is around 70 percent of the world market. I am talking Erythromycin. On Pyrazinamide which is an Anti-TB product we are at about 60 percent of the world market share. About Steroids we are at about 30 percent.

Disclosure: Invested from lower levels

The stock has run up a lot.. more than 5 times from lows around 17 in Feb 2014 to 113 recently... what targets are expected here from here on..