BUSINESS
Aarti Industries: Conviction backed by heavy capex
Capex projects for Aarti Industries are on track and are backed by a budget of about Rs 1,000-1,200 crore per annum for the next 4-5 years
BUSINESS
Heranba IPO: A short-term pop or a long-term compounder?
Coming to valuations, Heranba appears reasonably priced, given its return ratios and margin profile. The key aspect that differentiates is that China is a major export destination for the company.
BUSINESS
What has this Vitamin D API maker to offer beyond Covid opportunity?
Fermenta Biotech’s near-term growth for the Human Vitamin D3 volume is contingent on commissioning of the Dahej plant in the current quarter
BUSINESS
HEG: From value play to recovery play
According to HEG management, the industry level inventory has swiftly normalised, which points to higher utilisation levels and pricing growth in electrodes in the near term
BUSINESS
NOCIL: Execution exceeds expectations
NOCIL has set its growth guidance of an 8-10 percent increase in FY21
BUSINESS
Aurobindo Pharma: Vaccine and API plans inject add-on growth levers
In the injectables space, Aurobindo Pharma remains constructive and targets to almost double from current annual sales base of $380 million to $650-700 million in three years backed by new plants in the US and Vizag
BUSINESS
Balaji Amines: Take some profit off the table?
Coming to near-term prospects, next year, Balaji Amines should benefit from additional volume from higher capacity, helped by firm demand in the pharma end-market
BUSINESS
Dhanuka Agritech: Should we look beyond an imminent margin contraction?
Freight costs may weigh on Dhanuka's margins in near term. Management commentary from peer –Insecticides India - suggests that there has been a five-fold increase in the cost of availing the container service from China to India.
BUSINESS
Cadila: COVID vaccine to be the key differentiator in the near term
In the next fiscal, Cadila plans to launch 40-plus products, including 8-10 complex molecules which should offset pricing erosion
BUSINESS
IPCA Labs: API capacity constraint almost out of the way
IPCA continues to strive for vertical integration of its formulation production to the level of KSM (Key Starting Material). As of now, more than 60 percent of APIs used for formulations are produced in-house
BUSINESS
Divi’s Labs: All set to reap investments
Since the macro context is fragile, eventually liquidity will continue to chase cash rich and cash flow positive businesses such as Divi’s Labs
BUSINESS
PI Industries: Custom synthesis giant waiting for another orbit
We like the PI Industries' focus on custom synthesis and manufacturing which has helped it become a “partner of choice” for global agrochemical majors
BUSINESS
Laurus Labs: Diversification 2.0 is unfolding
Laurus lab's earnings growth is likely to maintain a strong momentum even beyond the forecast period on new capacity addition and foray into high growth areas of biotech, CDMO and oncology APIs
BUSINESS
Lupin: New launches and market share gains are likely to override pricing erosion
New launches in the US, particularly in the inhalation category, and an improving market share are expected to help ride over structural pricing erosion in the near term for Lupin
BUSINESS
Pharma: Ignore the noise as the core allocation is incremental
Focus on creating health infrastructure in the Budget 2021 is clearly an incrementally structural move which should indirectly benefit all the domestic oriented companies
BUSINESS
Dr Reddy’s: Should we look beyond impairments?
Large part of impairment charge taken by Dr Reddy's is explained by the erosion in the value of Nuvaring due to the launch of the additional generic product by Teva
BUSINESS
Cipla — Large part of COVID opportunity has played out
In the US market, Albuterol opportunity remains a key lever for Cipla at least till the time Perrigo re-enters although in terms of market share, the drugmaker may be close to maturity
BUSINESS
Sun Pharma: Sustained traction in speciality to be a re-rating driver
Sun Pharma's India business is expected to gain traction as sub-chronic and acute therapies pick up with the opening up of clinics/OPDs. This is likely to be fully backed by the field force where the expansion has recently been completed
BUSINESS
Goa Carbon: Is it a turnaround candidate?
The recent monthly production data of Goa Carbon indicates a pricing improvement for CPC (calcined petroleum coke)
BUSINESS
Navin Fluorine: Gold standard of chemicals at the price of diamond
Despite recent capex announcement in the specialty business, near-term growth of Navin Fluorine is likely to be aided by debottlenecking
BUSINESS
Sharda Cropchem: One of the most inexpensive plays on global agro-chem market
Sharda Cropchem has a healthy line-up of new registrations, and the higher registration in high-margin geographies is a positive for margins in the longer run
BUSINESS
Rossari Biotech: Market share gain in textile chemicals is comforting
In the longer term, what we like about Rossari Biotech is that it's led by technocrats with strong domain knowledge, which in turn has helped in superior execution of capex projects in the past and diversification into new end-markets
BUSINESS
SRF: Superior execution chemistry; add on decline
The underlying trend of 'China plus one' is seen in various end markets of SRF — particularly specialty intermediates in both agro and pharma end markets and technical textiles
BUSINESS
Gland Pharma Q3: Strong and clean play on global generic injectables; accumulate
We believe dominance of profit/royalty-sharing aspect in the business model distinguishes Gland Pharma from other contract manufacturers
