Sms pharma multibagger
SMS Life is a global player in API manufacturing having a strong research and manufacturing team supported by state of the art facilities. What started off as a single facility - single product manufacturing company in grew to be a multi-location group having product list spreading across an array of therapeutic segments.
SMS was given the export house status in the year SMS is currently a listed company having ever appreciating international and domestic customer base. Having four multi product facilities in operation and two research centers, SMS has truly graduated into big league with more than employees working for it.
Quality Innovation Customer Focus. Global Presence - Business in 70 Countries. Manfacturing Facilities Read more. What we do. Crams SMS Pharma undertakes contract manufacturing of API, Intermediates advanced and basic offering a competitive advantage to its clients especially Quality The company aims at achieving Quality excellence and customer satisfaction through Good Manufacturing practices and strives for continual improvement Who we are.
Read More. Latest News. Regulatory Achievements.Q: Hello Vijay Sir. Company sold one of its units in FY 13 and used this fund for clearing debt, company expansion and for buying back of shares. Debt to Equity is 0. Company is consistently paying tax. There was almost no sales growth during this period.
However, since FY, it has increased its pace of growth substantially. It seems mainly because of addition of new manufacturing units.
Fixed asset turnover ratio of the the company has more than doubled from 1. Such kinds of sudden improvements in operating efficiency are not common and the investor should analyse it in further detail. Such companies do not have much pricing power with buyers and therefore are not able to pass on the rising raw material costs to buyers.
An investor should analyse the reasons for operating losses during this year.
Monthly MultiBagger Stocks
SMS Pharmaceuticals Ltd seems to have been improving its operating efficiency on all parameters whether it is receivables days or inventory turnover ratio. The company is continuously adding new projectswhich is evident from consistent capital work in progress CWIP levels and increasing net fixed assets. However, the company is relying more on the debt for funding its capital expansion.
Increasing debt levels are a persistent problem with companies operating in capital-intensive businesses with very low asset turnover. Increasing debt levels always put any company into a difficult scenario with a potential to impact profitability and heightened risk of bankruptcy.
Overall, SMS Pharmaceuticals Ltd looks like a company, which has suddenly found some magical formula that has revamped its business with high sales growth and improved operating efficiency. A company that was not able to increase its sales since last 6 years is suddenly witnessing all the things going right for it. An investor should be cautious and analyse the change in the company in detail before making any investment decision about the company. SMS Pharmaceuticals Ltd is operating in capital-intensive business with very low asset turnover.
In order to grow its business, SMS Pharmaceuticals Ltd would always be required to raise debt to fund capacity expansion and then sell its assets to reduce debt when it rises to significant levels. In future, an investor should be prepared to see periods of low profitability due to high interest costs before the company reduces debt by either asset sales or equity dilution. However, you should do your own analysis before taking any investment related decision about the company.
This approach helped me invest even when I had a full-time corporate job and therefore, could not spare a lot of time for stock analysis. Therefore, if later on, the stock prices increase, then the investor is happy as she is now wealthier.
On the contrary, if the stock prices decline, even then the investor is happy as she can now buy more quantity of the selected fundamentally good stocks. Twitter Facebook-f Linkedin-in Envelope Rss. Dr Vijay Malik.When the bulls return, they will deliver multibagger returns on these counters. Unscathed by coronavirus selloff, this multibagger is having its day in the sun.
The man who picked multibaggers in the ruins of GFC looks for gems in new sectors. If grey market is telling the real story, here is your next multibagger. These 10 multibaggers are off to a flying start in after tepid All rights reserved.
For reprint rights: Times Syndication Service. Markets Data. Market Moguls. Expert Views. Technicals Technical Chart Visualize Screener. Commodities Views News. Forex Forex News Currency Converter. Market Watch. Pinterest Reddit. By Rahul Oberoi. Company Summary. Natco Pharma Ltd. Cadila Healthcare Lt Greenply Industries Selan Exploration Te Deccan Gold Mines Lt Avanti Feeds Ltd. Greenply Selan exploration Deccan gold Avanti Feeds. You need to lose some money in stocks to learn the ropes of the market.
This wisdom comes from an investor who is known for picking multibaggers, some of which have swelled up to 6, per cent in last four years.
Delhi-based investor Ashish Chugh says stock investing is about being able to look at the big picture, and not about nailing big returns very next quarter.There are a large number of small cap stocks listed on Indian Bourses and out of which, many of those stocks are penny stocks. Some of the stocks can turnout to be a multibagger stocks whereas many may remain a penny stock and probably will remain as the small cap stocks.
Therefore after conducting proper fundamental analysis, many of the stocks can hold for better longer term returns.
The following list present the list of small cap stocks having stocks with market capitalization of less than Rs crores and more than Rs crores. Out of these stocks many has the potential to become multibagger stocks.
List of small cap stocks in India : The following table highlights the small cap stocks in India as of Last updated on Apr — For more useful articles on trading, investing and market knowledge, visit our Knowledge Center section. Note : The above list is for information purpose only. Avoid trading and investing based on the information given above. Before investing in stocks do due diligence.
This site uses Akismet to reduce spam. Learn how your comment data is processed. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. Knowledge Base Search for: Search. Leave A Comment?Pharma stocks were so much at the bottom of barrel that nobody wanted to touch them with a barge pole.SMS PHARMA @47 - ZERO से HERO बन जाएगा यह SHARE FOR LONG TERM INVESTMENT
One can gauge the extent of apathy amongst investors from the fact that even Kenneth Andrade of Old Bridge Capital, who is renowned for his visionary and contrarian stance, was dismissive about them. Image credit: ET. Pharma Sector buzzing. It is a relief rally for Pharma stocks or is the rally here to stay? Special coverage at 8. Hot Money Pharma stocks' health improving, will the rally continue?
6,000% return in 4 years; Delhi investor offers smart tips to pick multibaggers
But, interestingly most except Auro are close to their historic 1 year forward PEs except for Auro. The wizards at HDFC Sec have done a systematic analysis of the situation presently prevailing in the Pharma sector and have explained the risks and rewards of investing in Pharma stocks.
Madhusudan Kela, who is regarded by the intelligentsia as a visionary stock picker, has come out with all guns blazing in favour of Pharma stocks. The Fund bought truckloads of Divis Labs at throwaway valuations and is sitting pretty on mega multibagger gains from the stock. He explained that the downfall in the Pharma stocks in the recent past had come about due to the USFDA crackdown as well as frothy valuations. Madhu advised that it is best to have a mixture of large-cap and mid-cap stocks.
While the large-cap stocks will provide stability, the mid and small-cap stocks will provide hefty returns.
He heaped rich praise on Divis Labs and explained that the fact that it was able to resolve a complex FDA problem within a short period of a few months speaks volumes about the competence of its management. He also revealed that Divis is likely to expand shortly and said that this will provide growth in sales and profits.
We will have to keep SMS Pharma on our radar. HDFC Sec has conducted an elaborate analysis of the strengths and weaknesses of all the well-known Pharma stocks. Sun Pharma, Lupin, Cadila, Aurobindo Pharma etc have been given a clean chit and recommended for buy. Hot Money Aurobindo Pharma gets thumbs-up from experts despite muted Q4. The sleuths at ET have also been hard at work in trying to flush out the best Pharma stocks to buy now. There are still pricing pressures in the US but intensity of pressure is easing.But based on the future growth potential ,still there is few pharma companies overlooked my market participants are available.
This week let us look into one such company — SMS Pharmaceuticals. An old time favorite pharma company in listed space promoted by Dr. In addition to this about 20 products are in pipeline which either came out of patent recently or to be be come out in near future. Recent Developments and Financials. Earlier in company sold one unit to Mylan Pharma for Rs.
On an equity base of Rs. Company started to report robust performance only from second quarter of this financial year after the completion of the expansion of all its manufacturing facilities See table below. I expect company will start to report full potential from next financial year onwards and FY may end with an EPS in the range of Rs. Since public float is low ,liquidity is less in this stock. Stock is currently trading Rs. Since this recommendation is based mainly on the anticipated performance in future and its low liquid nature ,it is a high risk high profit kind opportunity and recommending only to those having capacity to take such a risk CMP Rs.
Stock listed in both exchanges. Stock Pick - Kaveri Seeds. FY14 is also likely to be a year of strong growth for Kaveri, driven by continued market share gains in cotton seed and robust growth in corn and rice seeds.
It has no major capex requirements over the next two years. Kaveri also markets micronutrients and organic bio-pesticides and fungicides to boost crop yields. The current seed production is 40 million quintals and is expected to increase to 63 million quintals by There is scope for the per acre consumption of cotton seeds in India to jump from 1. Of the 40 million hectares under rice cultivation, hybrid rice accounts for only 2 million.
Kaveri expects the area under rice hybrid seed to grow to million hectares over the next three to four years. While optically this looks expensive, the valuation is not factoring in the continued strong growth in earnings in FY 14 and FY So, there you have it.
Subscribe to: Posts Atom.The magnitude of stock price movement in a low volume stock and comparatively high volume stock will be always different.
Select the stock suitable for your risk profile. I have recommended this stock Rs. Just a HOLD for me. Sir, Thanks for your new recommendation, already holding Granules India as per your guidance. Regards, Avishek. Sir what is your reply on Venus Remedies.
Do u think it will outperform in long run. Thanks in advance. Sir kindly tell me what is your view upon infinite computers as i want to buy please please reply so that i am able to pick a good one. Neuland recommended Rs. Stock currently trading Rs. It had fallen drastically and recovered recently. I tried to find the reason for drastic fall, but could not get the reason.
Please provide your view on it. Whats your take on Tree House education cmp ? How do you rate education sector going forward in regards with Tree House?
Pls reply this time sir. One of the better companies from this sector but valuation is not very cheap. One can consider in dip.
I have clearly mentioned in my posting that why Basant is an opportunity. But it is very difficult for fixing a time frame.
Analysis: SMS Pharmaceuticals Limited
If management will de-merge its seed business it will unlock a lot of value. Sir, When a company demerges and makes it into 2 companies, say A and B, the existing share holders are now holders of share in A or B?
Regards, Sunil. But based on the future growth potential ,still there is few pharma companies overlooked my market participants are available. This week let us look into one such company — SMS Pharmaceuticals. An old time favorite pharma company in listed space promoted by Dr.
In addition to this about 20 products are in pipeline which either came out of patent recently or to be be come out in near future. Recent Developments and Financials. Earlier in company sold one unit to Mylan Pharma for Rs. On an equity base of Rs.