Scripscan:Pochiraju Industries Ltd
cmp:20
Code:532803
Story:The company, which is in the floriculture business, has diverisified into the pharma/biopharma space.In the new areas that the company has entered there are several key factors that drive success: The ability to scale, customer engagement skills and expertise in regulatory affairs, especially when it comes to cracking open overseas markets.While the company says it enjoys good relationship with its customers (though no names have been given), there is no demonstrable evidence on the other two counts.Even in the pharma and the biotech space that Pochiraju is eyeing, the marketplace is intensely competitive, more so in the former with regard to the domestic market.In the biotech space, while the domestic market has recently seen the launch of human insulin, the action is more likely to take place in the European and American markets, as the roadmap for launching follow-on biologics is gradually falling into place.While the market size would undoubtedly be large, we would rather stick to established names to capitalise on this opportunity as and when the market opens up.Given the company's small size and its positioning, there is attendant volatility that investors will have to contend with.The scrip has been on a roll and it has moved up over 300% in the last six months or so.Though the possibility of further gains cannot be ruled out, as investors have had a tendency to gravitate towards such penny priced stocks.A sell on rally stock for me.
Search This Blog(Over 800 companies covered in the blog).
Archives : Old artciles
Thursday, October 8, 2009
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: arunsharemarket@gmail.com
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.
