The next tip is on Sanjivani Parenteral
Sanjivani Parenteral Ltd-Health for All
BSE : 531569; Cmp Rs 51; BUY
Shares in issue: 4.9 mn
Market Cap: Rs 26 crore
FY 05 EPS: Rs 5
FY06 EPS e: Rs 16
PE on 06 estimated EPS: 3.3
Investment Argument
• Sanjivani Paranteral Ltd (SPL), a Mumbai based contract manufacturer of injectibles is likely to witness substantial volume growth over the next two years from the domestic institutional and hospital segment.
• Analysts expect SPL’s Revenues to grow at a CAGR of 125 per cent over FY'05-06 on the back of orders from the Kerala government and new product launches. Thus FY06 Revenues are projected to be in the region of Rs 60 crore, with after tax profits at Rs 8 crore.
Background
SPL promoted by AH Khemka and Ashwin Khemka is a contract manufacturing company specialising in injectibles for the institutional and hospital segments and its key clientele includes Ranbaxy, Zydus Cadila, Alkem, Macleods, Ipca, Intas, Glenmark, Medley and Shreya Life-sciences among others.
Outlook
SPL presently operates in the antibiotic injectible space (anti-inflammatory, microbial, emetic, allergic and spasmodic) with products like Ceftrimax, Ivimax, Piptaz, Cefepime and C-Bactum. However from Q3 this fiscal it has launched new products like Methylcoblamin and Tranexamic Acid. SPL is planning to launch Meropenem broad spectrum injectible in Q1-FY05-06 used in infections like Meningitis and Pneumonia.
SPL would also introduce Aprotimin injectibles used in heart ailments and the anti-amoebic Ornidazole injectibles. SPL has filed dossiers for capreomycin (Anti-TB drug).
Valuation
SPL trading at 9xFY'05E and 3xFY'06E earnings is on the high growth curve and the stock can be accumulated at declines by investors for the long-term in view of an exciting contract manufacturing story going forward.
Sanjivani Parenteral Ltd-Health for All
BSE : 531569; Cmp Rs 51; BUY
Shares in issue: 4.9 mn
Market Cap: Rs 26 crore
FY 05 EPS: Rs 5
FY06 EPS e: Rs 16
PE on 06 estimated EPS: 3.3
Investment Argument
• Sanjivani Paranteral Ltd (SPL), a Mumbai based contract manufacturer of injectibles is likely to witness substantial volume growth over the next two years from the domestic institutional and hospital segment.
• Analysts expect SPL’s Revenues to grow at a CAGR of 125 per cent over FY'05-06 on the back of orders from the Kerala government and new product launches. Thus FY06 Revenues are projected to be in the region of Rs 60 crore, with after tax profits at Rs 8 crore.
Background
SPL promoted by AH Khemka and Ashwin Khemka is a contract manufacturing company specialising in injectibles for the institutional and hospital segments and its key clientele includes Ranbaxy, Zydus Cadila, Alkem, Macleods, Ipca, Intas, Glenmark, Medley and Shreya Life-sciences among others.
Outlook
SPL presently operates in the antibiotic injectible space (anti-inflammatory, microbial, emetic, allergic and spasmodic) with products like Ceftrimax, Ivimax, Piptaz, Cefepime and C-Bactum. However from Q3 this fiscal it has launched new products like Methylcoblamin and Tranexamic Acid. SPL is planning to launch Meropenem broad spectrum injectible in Q1-FY05-06 used in infections like Meningitis and Pneumonia.
SPL would also introduce Aprotimin injectibles used in heart ailments and the anti-amoebic Ornidazole injectibles. SPL has filed dossiers for capreomycin (Anti-TB drug).
Valuation
SPL trading at 9xFY'05E and 3xFY'06E earnings is on the high growth curve and the stock can be accumulated at declines by investors for the long-term in view of an exciting contract manufacturing story going forward.
