HIKAL LTD / KAVERI SEED COMPANY LTD - UPDATES

 HIKAL LTD
 
I have recommended a BUY on Hikal Ltd  @ Rs.269/- on March 18,2012.( For old Posting Click HERE) .Today stock hits  its 52 week  high of Rs.438 before closing @ Rs.427 ,an appreciation of about 60 % in 6 months . Those with some risk appetite may still hold it for further gain in long term.


KAVERI SEED COMPANY 
This stock repeatedly recommended from a level of Rs.272/- onwards . Today KSCL hits four digit figure and closed @ Rs.1003 /- ( For old Posting Click HERE) . In today's AGM company approved the payment of dividend @ 40 % per share.

Requesting all my readers to stick with quality companies irrespective of  market moods. Concentrate in company specific growth prospects rather than macro environments and control the temptations to over trade in momentum markets using leverage/margin funding -  for creating  wealth in  long term.

HIKAL - BUY

HIKAL– jointly promoted by Hiremath and  Kalyani groups is in the manufacturing of chemicals and intermediates for  sectors like Pharmaceuticals,Biotechnology and Crop protection. About 70% of company’s earnings is coming  from exports and having strong marketing tie-ups with multinationals includes Bayer,Syngenta,Degussa and Pfizer.Company is also very active in contract research(CRAMS) through its 100% subsidiary ‘Acoris’. Company’s manufacturing facilities are located in Taloja,Mahad,Bangalore,Panoli and Pune.Hikal is proving support for Discovery Research, Process Development, Analytical Method Development and Custom Manufacturing  and gained good reputation among multinational companies.Company’s expertise and lower wage structure prevailing in India compared with foreign countries providing enough scope for growth in these fields. Hikal is following stringent quality standards and its sites are approved by USFDA. In last financial year company’s  performance was dismal due to adverse currency fluctuation and lower demand scenario.Now things are improving and it came to growth path.For the nine month ended December quarter , HIKAL reported a sales of Rs.473 Cr and a net profit of Rs.39 Cr which is far better than last year.Considering the quality of management ,potential of the industry and scalability of business – HIKAL is a good BUY @Rs.269/- for medium to long term.

ASTEC LIFE SCIENCE - Patience will Pay

Astec Lifescience is promoted by Mr Ashok

Hiremath and Dr.P L Tiwari. Ashok is the

brother of Jay Hiremath , the main promoter

of  another listed company HIKAL Ltd.In the

early stages, Ashok was also a

joint promoter of Hikal but later he came

out of Hikal and promoted this company.Astec is

a producer of active ingredients such as

Hexaconazole, Propiconazole, Metalaxyl,

Tebuconazole and Dicap which are used

for manufacturing fungicides and anti-fungal

drugs.Company’s major customers

includes Syngenta ,Indofil ..etc.Last year

company came out with an IPO to fund its

expansion plan .This expansion

will be completed in 2010-11 and capacity will

be expanded to 4000 tons.At present ,company is

running in existing full capacity. Agrochemical

industry is expected to perform well in future and

company is alls set to tap the opportunities in export

market for selling its products

after the expansion. Investors with patience

can buy at CMP of 57/- for a 100% return in two

year time frame.