Panacea Bio-tec is the second largest vaccine manufacturer in India. About 70% income of the company is generated from vaccine sales and rest from formulations. It is one of the largest oral polio vaccines (OPV) maker in India .In the formulation division, company is concentrating in medicines for pain management, cardio vascular disorders and diabetes. Company is a supplier to various UNICEF projects , and recently received an order for’ EasyFive’ vaccines worth $ 222 Million .For oral polio vaccine ,Panacea received an additional order for $ 120 million which is to be supplied in 2010 itself. Government’s thrust in vaccination is a big positive for the company. Due to heavy forex loss ,company posted loss in last year but returned to profit in this FY. Slightly higher debt level is a problem for the company at present. Higher growth rate with improving margin and a cash balance close to Rs.100 Cr mitigate this risk .For the September qtr ,company posted a turnover of Rs.256 Cr ( Rs.169 Cr) and a net profit of Rs.17 Cr ( Rs.2 Cr) . Company is expected to post an EPS of Rs.20+ in FY 2012 .One may BUY at CMP of Rs.192/- for a 50 % appreciation by the end of next FY.
Disclaimer: This Blog,its owner,creator & contributor is neither a Research Analyst nor an Investment Advisor and expressing opinion only as an Investor in Indian equities. He/She is not responsible for any loss arising out of any information, post or opinion appearing on this blog.Investors are advised to do own due diligence and/or consult financial consultant before acting on any such information. Author of this blog not providing any paid service and not sending bulk mails/SMS to anyone.
Tuesday, December 21, 2010
Subscribe to:
Post Comments
(
Atom
)
This company should be hold for more then 10 years due to increase in population in india which increases sales of this company due to polio
ReplyDeleteIf Panacea is 2nd Largest for vaccines, which is the first one?
ReplyDeletecould you bring in any good undervalued stock in Breweries & Distilleries, as i think that is ever green sector and keeps growing
ReplyDeleteDear BH
ReplyDeleteLargest one is Serum Institute of India which belongs to the Cyrus Poonawalla group .This group also hold some stake in Orchid Chemicals too
i have invested in Superhouse Ltd. @ 63 levels in October but it has not moved and now it is hovering around 52, what is your view for next 3 to 6 months
ReplyDeleteSir,
ReplyDeleteWhat's your call on IKF Finance and Su-Raj Diamonds?
Hi ValuePick
ReplyDeleteCan you please share your views on Diamond Power Infrastructure?
Dear Anand
ReplyDeleteNo faith in the management of IKF