NEULAND LABORATORIES LTD - TURNAROUND PERFORMANCE

Traditionally ,Pharmaceutical companies are known as defensive bets .It also giving reasonable return in bull market ,that is why conservative investors are always giving preference for pharma companies in their portfolio. Considering the chances for  low cost manufacturing and recession proof(to some extent) status of the business R&D driven pharma companies are always catching market attention. Neuland Laboratories is such a company from Hyderabad started in 1984. Neuland is promoted by Dr D R Rao and its board is supported by eminent personalities includes Mr Humayun Dhanrajgir (Former MD of Glaxo India), P V Maiya  (Former chairman of ICICI Bank) Mr SP Budhiraja(Former MD of  IOC) ..etc. Company is in the manufacturing of Active Pharmaceutical Ingredients(API’s) ,Contract Research and manufacturing (CRAM) and Clinical research. It also started the production of Peptides last year. Neuland having two USFDA approved manufacturing units ,one at Bonthapally and  other at Pashamylaram  near Hyderabad and exporting its products to more than 40 countries worldwide..It also have a strong R&D with 165 scientists. Company is one of the largest manufacturer of Ranitidine in India.Neuland’s sales in segment wise is as follows, 45% from Quinolones ,18 % Cardiovascular,16% CNS,10% Anti Ulcerants,4% Anti Asthma and rest from others. Company having two subsidiaries Neuland laboratories KK Japan and Neuland Laboratories Inc USA. Recently company started a joint venture with  Cato Research Israel to offer clinical research services in India .Neuland owns 70% stake in this new company called Cato Research Neuland India Pvt.Ltd.  Neuland’s R & D division has identified 13 new products for development in this year.

Financials

In the history of last 10 years ,Neuland posted a loss ( Rs.7 Cr )in last year with a sales of Rs.282 Cr.This is mainly because of the  production disruption  due to renovation of plants, unfavorable exchange rate and some regulatory problem of one of its products. Most of these problems are stabilized now and company is expecting better days ahead. Company has taken various cost cutting measures and steps  for the optimum utilization of its resources. For the last two years ,Neuland made heavy investment in infrastructure including production facilities ,R&D and

H R. Benefits of these efforts are also expected to start from this year. It is a point to note that before the loss making last year ,in two previous years ,company posted EPS more than Rs.20/- and paid hefty dividends to share holders.Now the management is confident to achieve better results ahead and their optimism seems to be true based on the September qtr numbers. In the latest qtr Neuland posted a turnover of Rs.101 Cr v/s Rs.61 Cr and a net profit of Rs.3 Cr v/s Rs.70 lac .On an equity base of Rs.5.47 Cr ,company posted an EPS of Rs.5.30/- in latest qtr .Even after deducting the loss in first qtr ,it is expected to perform very well on a full year basis. A good management with transparency, integrity  and ethics is the big positive of this Company. Currently Neuland is trading @ Rs.119/-  which is even below its book value of Rs.126 /-. One may consider a BUY at current level with medium to long term view for decent return.

WANT TO MAKE MONEY - FIRST SWITCH OFF BUSINESS CHANNELS !!!!!!!

NOBODY CAN BLAME A LAYMAN ,IF HE BELIEVES ,HERE IN INDIA BUSINESS CHANNELS ARE PLAYING IN THE MARKET IN A BIG WAY AND SENSATIONALIZING EVEN MINUTE NEWS TO MOVE THE MARKET IN THEIR FAVOR AFTER CREATING HUGE POSITIONS IN STOCK MARKET.INCIDENTS IN LAST FEW DAYS ARE ENOUGH TO THINK IN THIS DIRECTION.YESTERDAY IT WAS CBI AND DAY BEFORE  IT WAS KOREA.NOTHING WRONG IN REPORTING ANY NEWS RELATED WITH BUSINESS AND STOCK MARKET,BUY THE WAY SUCH NEWS IS PRESENTED BY THE CHANNELS ESPECIALLY A WELL KNOWN ANCHOR WITH HIS SPECIAL BODY LANGUAGE BEFORE GETTING THE TRUE PICTURE AND SERIOUSNESS IS REALLY IDIOTIC. AFTER SENSATIONALISING SUCH STORIES IN THE AFTERNOON THEY OR THE VESTED INTEREST PARTIES RELATED WITH THEM MAY REVERSE THEIR POSITIONS AND LATER CLARIFY THAT - THERE IS NOTHING ALARMING AND INVESTORS NEED NOT WORRY ABOUT THAT .BUT BY THAT TIME POOR RETAIL INVESTORS WILL PANIC AND SUFFER HUGE LOSS DUE TO THE DECISIONS TAKEN ON THE BASIS OF EXAGGERATED STORIES.
SEBI IS TAKING A LOT OF STEPS TO CONTROL THE WRONG DOING OF STOCK MARKET INTERMEDIARIES BUT CHANNELS ARE FREE TO REPORT ANYTHING AS THEY LIKE .THEY ARE NOT SHOWING ANY SHAME TO TAKE JUST AN OPPOSITE STAND IN THE NEXT DAY ITSELF .THESE CHANNELS AND ANCHORS ARE NOT EVEN SHOWING THE STANDARD OF SOME THIRD CLASS POLITICIANS.IT IS FAIR TO IMPLEMENT AT LEAST SOME SELF MADE MINIMUM STANDARDS IN REPORTING AND BROADCASTING .THERE IS LOT OF PLAYS HAPPENING BEHIND THE CURTAIN .SO RETAIL AMATEUR INVESTORS  SHOULD TAKE UTMOST CARE IN THESE VOLATILE DAYS. IT IS BETTER TO AVOID HUGE POSITIONS IN F&O SEGMENT AND AND ALSO LEVERAGED POSITION IN CASH MARKET.

RANBAXY LAB - BUY

India's largest pharma company not need any explanation for the investors. After the take over of Daiichi Sankyo ,initial hiccups on integration of management is almost over .Under the new leadership,company is expected to perform well going forward.In the latest qtr ,Ranbaxy's domestic sales posted very good performance but it partially offset by the not so good sales outside.Company is expected better performance in near future due to the beginning of the supply of Nexium API and formulations.In an effort to strengthen its local sale,company recently recruited more than 1000 field staff.All these efforts under the new management is expected to help the company to capture the past glory. Investors can add Ranbaxy  in their portfolio for long term gains.Considering the volatility in the  market ,it is better to buy in small lots.CMP is Rs.570/-

INGERSOLL RAND -BUY

Ingersoll Rand India is a subsidiary of US-headquartered Ingersoll-Rand plc . It is one of the largest manufacturers of compressed air systems in India. Its debt free status and huge reserves makes it an attractive bet for long term investors.Since there is slow growth in its overseas business,now parent company is increasing its interest in its Indian arm.Ingersoll Rand now planning to increase the capacity  for manufacturing heating, ventilation and air conditioning  products. Company is expected to make India as a hub for their regional requirements.For the half year ended September 2010,company posted a turnover of Rs.113 Cr (Rs.81 Cr) and a net profit of Rs.18.5 Cr (Rs.10.8 Cr) .Factors like good support from parent company, well accepted brand ,healthy balance sheet with around Rs.650 Cr cash reserves..etc , makes it an ideal candidate even for  a conservative portfolio.Currently IR is trading around Rs.450/- . Investors can BUY it around Rs 430-440  for decent return in medium to long term

LUDLOW JUTE - UPDATE

I have recommended LUDLOW JUTE AND SPECIALITIES as a BUY on decline @ Rs.86/- ,before the declaration of second qtr result . Based on the robust performance I reiterate a BUY at current level of Rs.88/- .For the half year ended September ,Company posted a turnover of Rs.162 Cr  v/s Rs.108 Cr , a net profit of Rs.16 Cr v/s Rs.4.7 Cr   and an EPS of Rs.15/-

Old Report can be Accessd HERE

SRI ADHIKARI BROTHERS TELEVISION NETWORK(BSE - 530943) - RESULT UPDATE

I have recommended a BUY on SRI ADHIKARI BROTHERS TELEVISION NETWORK on 27th February 2010 @ Rs.27/- .(Old Report can be Accessed HERE) .After touching a high of Rs.73.50/- in last week ,it is now quoting around Rs.59/- .On a standalone basis ,in the September quarter company posted a turnover of Rs.9.5 Cr v/s Rs.5.4 Cr and a net profit of Rs.1.4 Cr v/s a loss of  Rs.81 lac .For the half year ended SAB posted a turnover of Rs.17 Cr and a profit of  Rs.2.83 Cr and an EPS of Rs.1.61 .In a consolidated basis, it is expected to perform even well in coming years due to the robust performance of the newly launched Hindi Music Channel ' Mastiii' through its subsidiary.Company is also expected to start few more channels in coming years.Vast experience of promoters is the main plus point of this company .Investors can HOLD at current level and any correction below Rs.50/- due to overall negative sentiments in market(if any) may taken as a chance to ACCUMULATE it for long term

KILBURN CHEMICALS - BUY

Kilburn Chemicals is a known producer  and exporter of  Titanium Dioxide and Ferrous Sulphate Hepthahydrate . Its plant is located at Tuticorin and registered office is in Chennai..Titanium dioxide is widely used in the production process of Paint, Rubber, Paper, Detergents, Cosmetics, Printing Inks, Textiles, Plastics  .etc. Ferrous Sulphate Hepthahydrate is mainly used in Cement industry and for manufacturing water treatment chemicals. Sulphuric acid is one of the raw material for the production of  Titanium Dioxide. Low availability and higher prices of Sulphuric acid causes for erosion of margins for the company in the past. But now,new capacities are added in various parts of the country for producing Sulphuric acid and its price and supply stabilized .Company’s user industries are also showing good growth .This situation is expected to help the company to report better numbers going forward. For the half year ended Sep , Kilburn Chemicals posted a turnover of Rs.55 Cr and a net profit of Rs.5.6 Cr . Medium to long term investors can consider it at CMP of Rs.59/-

TCPL PACKAGING - BUY

Packaging companies are one of the indirect beneficiaries of the increasing consumer spending ,mainly in FMCG sector . TCPL packaging is one of the mid size packaging companies based in Mumbai .Company having four plants – three in Silvassa and one in Haridwar.It is one of  largest manufacturers of printed folding cartons in India . Its products list include Printed blanks & outers, Folding cartons, Litho Lamination, Plastic cartons, Blister paper … etc .Company also exporting its products to countries like UK,USA, UAE. Many of the Indian FMCG majors are the customers of the company like  ITC, Radico Khaitan, Jagatjit Industries Ltd., Khoday's, Nestle, Glaxo Smithkline, Kellogg India, Heinz, Amul, Hindustan Unilever Ltd , Colgate, Godrej Sara Lee, Godrej Consumer Products, Cavin Kare, Marico, Himalayan Drugs ..etc . Even if this company is not so popular among investors ,it is one of the best play in listed packaging space . TCPL is growing steadily and paying dividend without any interruption for the past many years . Last full year ,company posted a turnover of Rs.188 Cr .PBDT is Rs.20 Cr and CEPS is Rs.21/- .For the current year ,company is expected to improve its financials mainly due to better demand situation and benefits from  recent capacity addition. At CMP of Rs.55 /- ,it is a good BUY for medium to long term.

VEEJAY LAKSHMI ENGINEERING WORKS Ltd (BSE CODE 522267) - BUY

After a long period ,textiles companies are making big  profits due to good demand  and better realization. Improvement in their bottom line will surely translate into more expansion and modernization programmes . This will surely improve the prospects of textile machinery makers going forward. Veejay Lakshmi Engineering Works Ltd (VLEWL)  is a Coimbatore based textile machinery manufacturer started operations in 1974.Its products list includes Two-For-One twisters, Automatic cone Winders ,Precision Propeller winders, Random Assembly Winder ..etc For the past many years ,company’s performance was badly affected due sluggish demand which is now reviving . Any decision to continue the presently suspended TUFS will be an added advantage for textile machinery sector as a whole. For the half year ended September 2010 , company posted  a turnover of  Rs.50 Cr (Rs.29 Cr) and a net profit of Rs.2 Cr (Loss of Rs.1 Cr) and an EPS of Rs.4.13 /- . Medium to long term investors may consider a  BUY at CMP of  Rs.76/-