Company has two subsidiaries – Lincoln Parenteral Limited and Zuinich Healthcare Ltd. .

After analyzing the Financial Statements, I noted the following:-

Almost, 20% of sales has contributed nothing to the PAT margin. So, the subsidiary business is margin dilutive in nature.
Also, its hard to believe that a company generates 16 lacs of PAT on 68 crores of sales (it includes 16 crores to holding). I feel if that’s a way of taking out cash from the business.
Lincoln pharma has given 4 crores as a deposit to Lincoln Parental Limited.
I observed 5 directors out of 7 from the promoter group.
None of them has a degree or mentioned experience in pharma field.
I’ve certain doubts on governance .

Thanks.

Disc : Not invested. Under Radar.

I think I could not explain properly.

The Moolah lies in servicing the needs of the Academic/Educational STM (Science Technology Medical) Journal & Books Publishers.

I would think catering to Digital Publishing requirements of these customers is profitable – as The Digitally transformed product is only (one of) the Outputs. The main technology service that MPS like providers provides is what is called pre-publishing processes & workflows. From the Time an author submits a manuscript or file to the publisher to proof-read to editing to cross-referencing author reference for scholarly articles referred, to integrating bibliography to design to content rendering/transformation or print. The technology service provider game is to provide quick turnaround from author file to reader consumed final product – to be available for the Publisher’s platform.

Catering to digital publishing requirements of non-STM segment like say an Amazon.com self publishing platform cannot be that profitable or for that matter say fiction or business or fashion books/magazines and the like.

Hope this time I could explain better

I have a query on their announcement dt Aug’15 “Pending receipt of approval of TNPCB for consent to operate at higher capacity, utilization of the plants has been restricted.”

If their current capacity is under question for Pollution board how come a big capacity planned by the company will not face such risk in future?

Second in their May press release they had plan to invest Rs 100cr for capacity expansion

But in Sep they signed MOU of Rs 500cr investment which includes power plant as well

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Discl – Exited fully in 2 phases…want to buy again post some clarity on capex

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/2641D161_381D_41EF_8125_8A00AF9F3C09_134315.pdf
results just came out
Not as stellar as last qtr but still decent