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
BUSINESS
Syngene: A preferred partner of global pharma innovators; accumulate
Beyond contract research, another trend to watch for Syngene is the pickup in contract manufacturing business in biologics and APIs
BUSINESS
Phillips Carbon: Time to book profit?
Phillips Carbon has been a strong beneficiary of the global supply chain dislocation which initially helped in volume growth and later added to margin improvement
BUSINESS
Rallis India: Seeding for the future
Volume growth for most of the products for Rallis has strengthened
BUSINESS
Challenges before healthcare and expectations from Budget 2021
According to the National Health Policy, total public health expenditure is expected to hit 2.5% of GDP by 2025 from the current about 1.3%
BUSINESS
Bhansali Engineering Q3: Global shortages may spell better margins in short term
In the medium term, Bhansali's traction towards high-grade applications and greenfield expansion is crucial for superior and sustainable margin profile
BUSINESS
Bodal Chemicals: Diversification towards benzene chemistry – a structural shift
Import for select benzene-based chemicals is on an uptrend and hence offers a good import substitution opportunity for Bodal Chemicals
BUSINESS
Navin Fluorine: Can it continue to outperform with an eye on the next leg of growth?
Navin Fluorine’s recent capex announcements add to conviction that it's increasingly evaluating other complex applications of fluorine chemistry and looks well focused to diversify into higher margin products
MARKETS
Fed: Vaccine rollout strengthens medium-term recovery
Although news flow about vaccine approval and distribution is positive, the continuing pandemic and the fragility in the economy make the next 4-6 months quite crucial
BUSINESS
Rain Industries: Is the worst behind?
Overall growth environment is fragile but we estimate that the near-term stress in the demand environment is already priced in Rain's valuations
BUSINESS
Colgate Palmolive: Raw material tailwind adds to shine
Colgate’s strong brand recall among consumers, new launches and higher brand investment should help it post better market share going forward
BUSINESS
Britannia — Look beyond near-term haze
As for the capex plan of over Rs 700 crore, Britannia prioritises for newer plants in Tamil Nadu and UP, followed by Bihar
BUSINESS
Hindustan Unilever: Can the elephant dance like a Pro?
Going forward, challenges cited by HUL are uncertain growth outlook for urban areas, inflationary pressure and subdued prospects for winter
BUSINESS
Phillips Carbon: A commodity chemical play at attractive valuation
In the medium term, Phillips Carbon Black's growth is likely to be a function of volume growth
BUSINESS
Bhansali Engineering: Proxy to auto recovery, but can it re-rate from here?
While Bhansali Engineering's current trading multiples are at a discount to sector and its own historical highs, we believe there is limited scope for re-rating from here
BUSINESS
This food colour company’s business model makeover and capex plans need a close watch
In the near term, an improving product mix, lower share of trading business and backward integration are expected to improve earnings for Vidhi Specialty
