Unichem Labs
The stock jumped by 6.3% today to hit a CMP of 308.00 rupees. Consider exploring this stock for a buy.
Here's why -
a) The stock is available at a fwdPE of 12.36, which is one of the lowest amongst all pharma stocks
b) Although sales are growing slowly, the PAT is zooming at over 20% growth
c) The PAT per quarter has been in upwards of 18 crs over last 3 quarters
d) There is preferential allotment of shares to a private equity firm which has recently jacked up the prices. (the stock grew by 37% in two months)
e) The current dividend yield is 1.14% only. But given the increase in profits this year, I expect an increase in dividend to 5 rupees a share. It wont be more than this as the company is looking at expansion opportunities and acquisitions .. where internal accruals may be more handy than debt.
That apart, I found another swanky news item on Investsmartindia. Diabetes, Cardiology and Anti-infectives are growing areas in the healthcare segment. Buy in low numbers now and increase stake if it drops anywhere.
Here's why -
a) The stock is available at a fwdPE of 12.36, which is one of the lowest amongst all pharma stocks
b) Although sales are growing slowly, the PAT is zooming at over 20% growth
c) The PAT per quarter has been in upwards of 18 crs over last 3 quarters
d) There is preferential allotment of shares to a private equity firm which has recently jacked up the prices. (the stock grew by 37% in two months)
e) The current dividend yield is 1.14% only. But given the increase in profits this year, I expect an increase in dividend to 5 rupees a share. It wont be more than this as the company is looking at expansion opportunities and acquisitions .. where internal accruals may be more handy than debt.
That apart, I found another swanky news item on Investsmartindia. Diabetes, Cardiology and Anti-infectives are growing areas in the healthcare segment. Buy in low numbers now and increase stake if it drops anywhere.
posted by Shankar Nath at 10:24 PM
3 Comments:
Hi Shankar,
Good find but your analysis seeme to be incomplete here too as you have not considered its subsidiary in your calculations.
IF you dont have its balance sheet you can go to nse's website and see its consolidated results.
Maybe you would find the company still cheaper...
Let me know so that we can futher discuss on this
rgds,
Sudhir
Hi Sudhir,
Tried that. But couldn't get the annual report of the company. If you can manage the same, kindly email the same to shankarnath@gmail.com
Warm Rgds
Shankar
Hi Shankar,
I dont have it in pdf format. But you can see its consolidated results vs non-consolidated from nse's website.
Its consolidated sales figures are Rs. 577.72 cr vs 390.64 cr for year ended Fy05. Its PAT figures are 82.35 cr vs 45.09 and EPS figure 24.14 vs 13.2 - about 80% more...
Its interest figure(which is very imp.) increases only to 3.19 cr from 2.3 cr so the subsidiary is also not carrying big debt it seems...
Seeing first 9 months figures for non-cons, one can take consolidated eps of about 40 for full year for cons company giving it forward pe of about 7.5 making it quite cheap for a company with good growth & considering nifty's pe of about 20...
Rgds,
Sudhir
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