Solvay Pharma India Ltd:Future growth prospects and outlook,analysis/news and views

Scripscan:Solvay Pharma India Ltd
cmp:1000
Code:532447

Story:Solvay Pharma India Limited engages in the manufacture and sale of pharmaceutical products in the areas of gastroenterology, women's health, neurosciences, influenza, psychiatry, hormone therapies, hepatology, perinatology, muscle relaxants, digestive enzymes, and allergy. Its products in the areas of women's health comprise Arachitol for treatment of vitamin D deficiency; B-crip for infertility and other gynecological dysfunctions associated with hyperprolactinemia; clome and nugon for female and male infertility; duphaston, which is indicated in progesterone deficiency; duvadilan that is indicated in preterm labor; Oestrogel to correct estrogen deficiency; Puregon for female infertility; and Utrogestan, which is indicated in progesterone deficiency and in menopause. The company also offers phychiatry/ENT/neurology products consisting of Ebasil for allergic rhinitis; Solspre nasal spray for postsurgical nasal care and daily nasal hygiene; Uvox for the treatment of depression and obsessive compulsive disorder; and vertin for the treatment of vertigo/dizziness and meniere's disease. Its products in the areas of gastroenterology include Colospa for the symptomatic treatment of abdominal pain and cramps, bowel disturbances, and intestinal discomfort; Creon for treatment of pancreatic exocrine or enzyme insufficiency; duphalac for the treatment of constipation and hepatic encephalopathy; eldicet for the treatment of irritable bowel syndrome; pankreoflat for the treatment of disturbed function of the pancreas, chronic inflammation of the pancreas, or absence of gastric juice; and udiliv for the treatment of liver diseases. In addition, Solvay Pharma offers Influvac, a vaccine for the prevention of influenza; collosol iodine for iodine deficiency disorders; and duodil for musculoskeletal conditions. The company is based in Mumbai, India. SPIL's strong balance sheet makes it a clear long-term investment candidate. Debt-free status & healthy cash flows year-on-year add to the defensive nature of the stock.We believe that these healthy cash flows should help the company in case a reasonable acquisition opportunity presents itself. At CMP of Rs 1000, the scrip trades at 10x CY2011E earnings.A good bet to own for a perspective of 3-5 years horizon.