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

Friday, November 18, 2011

Sequent Scientific Ltd:-Buy/sell/growth prospects and recommendation,news and results,target price and analysis,view and outlook,multibagger

Scripscan:Sequent Scientific Ltd

Story:They are making APIs (Active Pharmaceutical Ingredients) which we loosely call as bulk drugs for human and veterinary sections. In fact, they are supplying anti-Malaria API largely to Cipla .They have five manufacturing plants and two R&D centers, one at Mangalore and another at Bangalore, and those R&D centers are really doing very well.With a strong executive team and 600 people workforce, the company is impressive in terms of presentations or with project structuring.About 55 APIs are under development stage. This cannot just be treated as a general bulk drug maker or general API company because any breakthrough in any of them, out of 55 APIs even if they are able to succeed in four-five APIs also, that can give them very good profits.In FY11, the company had a topline of close to Rs 300 crore and EPS of close to Rs 7. The company declared 15% dividend, but since all the operations are integrated into one company R&D as well as the production operations, they had bad working in first half where they posted a loss of about Rs 10 crore in the six months ended September 2011. However, topline has very well been maintained at about Rs 160 crore. So, going forward, I am quite optimistic on the stock. At one time may be six months back the stock used to rule at about Rs 100-110 but because of the subdued working in these two quarters the share has corrected now to about Rs 53-54.I don’t think from hereon the share seems to have much downside. The present market cap of about Rs 120 crore and even if I add the entire debt including the working capital, gives an enterprise value of about Rs 300 crore for the company. With a shareholding pattern of 72% held by the promoter, 22% held by about 15-20 HNIs, the public float is very low.So, I find this company quite interesting and if somebody can really remain invested with a view of about two-three years, this can really be a very blockbuster kind of investment in someone’s portfolio. But one has to be very patient. One cannot take a monthly or a quarterly call on the stock. Downside seems to be limited may be 10-15% but on a two-year horizon share can give a return of 100-150% also.

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