MONEYCONTROL-RESEARCH
Anupam Rasayan IPO: Has it lost the case with weak listing?
Anupam though 1/10th the size of PI Industries, appears to be its good proxy in the field of custom synthesis of agro-chemicals. One of the things which strikes us is the growing export exposure to the lucrative Japanese market.
BUSINESS
Bodal Chemicals: On transformation from a dyes major to a diversified play
Business case for the new capex and acquisition of Bodal Chemicals appears promising, given the import substitution play and higher applications of benzene-based chemicals
BUSINESS
Laxmi Organic IPO: A leader in basic chemicals, doubling down on speciality
Re-rating driver for Laxmi Organic depends on success in fluorospeciality, which is likely to be margin-accretive
BUSINESS
Anupam Rasayan IPO: A tiny version of PI Industries, diversifying beyond agro-chem
One eye catcher is the growing export exposure for Anupam Rasayan to the lucrative Japanese market
BUSINESS
Heranba, a short-term pop or long-term compounder?
Post listing gains, should we look beyond Heranba in agro-chem?
BUSINESS
Atul and Amal: When basic chemicals get special
Basic chemical player Amal warrants investors’ attention just as APIs in the pharma space are getting policy attention
BUSINESS
Rain Industries: Time to reap 'end of capex cycle'
Though the Rain stock has firmed up since our last note by 22 per cent, we remain constructive as the valuations are still reasonable
BUSINESS
NSE Trading Halt: Outage calls for regulatory action to restore retail investor confidence
Retail equity participants are most vulnerable to the harmful effects of technical failures in the financial market
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
