10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Saturday, May 30, 2009

Plethico Pharmaceuticals Ltd:-one of the finest bet in the pharma sector

Scripscan:Plethico Pharmaceuticals Ltd
Traded in:Nse-bse

Story:Incorporated in 1991, Plethico hit the capital market in April ''06. The company was originally engaged in manufacture of Drug Price Control Order (DPCO)-controlled prescription drugs in the anti-TB and anti-malarial segments. Later, it sold its products to Shreya Life Sciences. Since then, it has been operating in the herbal and nutraceutical segments, which comprise dietary supplements, functional foods, vitamins, haematinics (iron) and mineral supplements. Nearly 50% of the company''s turnover is contributed by nutraceuticals, 19% by allopathic formulations, 25% by contract or toll manufacturing, and the remaining by its consumer products. Around 68% of its revenues accrue from export markets like Commonwealth of Independent States (CIS), Africa, Latin America, Gulf Co-operation Council (GCC) and South-East Asia. The company forayed into the US - the world''s largest nutraceuticals market - by acquiring a $100-million company, Natrol, in January ''08. Just like Plethico, Natrol also operates in the herbal and nutraceuticals segments, predominantly in the US and in a small way in the UK, through its subsidiary. Established in 1980, Natrol has a strong portfolio of brands in the healthcare and wellness space. It now contributes 45% to Plethico''s total revenue.The company''s strategy of shifting focus from prescription drugs to OTC nutraceutical drugs has proved to be successful. Plethico''s growth prominently comes from its export business. It plans to ramp up production of Natrol''s products, which are well-established in the US, and distribute them widely in other key markets. The company focuses on building a strong distribution network to sell its imported products. Its subsidiaries in CIS and the US have given it a good distribution footprint in key markets. Plethico is scouting for more acquisitions to expand its network further.The company is in a fast-paced growth phase, with its profits rising faster than sales. Plethico has been paying dividends every year since the past decade, with an average payout ratio of 25%. This is likely to be the minimum payout ratio in future as well, according to the company.Plethico has a conservative revenue and profit target of Rs 1,000 crore and Rs 200 crore, respectively, for the financial year ending December ''09. Considering the company''s estimated consolidated earnings for CY09, Plethico is currently trading at a forward P/E of 3.3. This makes it an attractive pick for investors looking for a mid-cap growth stock in the pharma sector.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner