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Monday, December 17, 2007

HOT STOCK : UNICHEM LABS

Unichem brings to the customer a blend of modern-day research and nearly six decades of rich experience in the Indian pharmaceuticals industry. The Company was promoted by the late Mr. Amrut Mody, a pioneer in the Indian pharmaceuticals business.

Even though formulations account for a significant portion of Unichem's revenues, the Company also manufactures active pharmaceutical ingredients (API or bulk actives). The Company has prudently addressed relevant and growing therapeutic areas like gastro-intestinal, cardiovasculars, diabetes, psychaitry, neurology, anti-bacterials, anti-infectives and pain management, among others.

Unichem is headquartered in Mumbai with five manufacturing locations in Roha (Maharashtra), Goa, Ghaziabad (Uttar Pradesh), Pithampur (Madhya Pradesh) and Baddi (Himachal Pradesh). The Company's facilities enjoy credible certifications: for instance, the Goa plant has been approved by UK MHRA (earlier MCA), MCC (South Africa), WHO (Geneva) and TGA (Australia). The Baddi plant has been approved by UK MHRA and MCC (South Africa). The Company has received ISO 9001:2000 for all its plants and corporate office. Similarly the Company has received ISO 14001:2004 certificates for its formulation plants ( Goa, Ghaziabad and Baddi) and Corporate Office at Mumbai.

As a future-focused initiative. Unichem has expanded its Research and Development facility in Jogeshwari (Mumbai) to spearhead research in Novel Drug Delivery Systems (NDDS) and develop non-infringing routes for the manufacture of products directed at the regulated markets. The Company has also funded a collaborative research with the Indian Institute of Sciences, Bangalore. Unichem's growth strategy is fueled and backed by more than 2400 talented and motivated human resources.

Source : www.unichemindia.com

The financials of the company are robust. With the full year earnings expected to be in the 23-25 range, the stock is trading at a PE of only 7.7 at cmp of 190 which is quite low as compared to its peers. The stock deserves a PE rating of 12-15 and thus the fair value of this stock should be around 300 to 375 levels. Technically, the stock looks like it has bottomed out and will now go up.

25 comments:

sandy said...

Hii Navin Bhai how are u? I am loocing forward in Unichem

deepil2003 said...

hi navin
thnks for kind reply regarding spicejet and unichem lab , i purchased both scrip worth of rupees 100000rs/ it is 100% dividend paying company eps seems me good P/E IS OK ,BUT ITS FACE VALUE IS 5RUPEES will it make any diffence eps is according to 10 rs or 5 rs face value? this is the question i am thinking why it came down so low 52 week low any negative news
nevertheless i purchased 300 shares
regards
deepak dindorkar
deepil2003

Naveed Pasha said...

Hi Superstar,

Thanks a lot for your recommendations. I have been trying to get your website ID for long but couldn't get it until now.

Now the market has corrected a bit can you kindly suggest me any good stocks to invest in?

Please mail me your further recos.

Best Regards,
Naveed Pasha.

Superstar said...

Hi Sandy & Deepil,

Unichem's face value is of 5 rupees for a long time. The projected EPS given here is for the FV of 5 rupees only, so nothing to worry. Pharma sector as a whole was forgotten in the bull rally of the last six months, that's why the stock is available so cheap. The stock price can easily double from the current price of Rs.187.35 in the next one year.

Cheers!

aksaks said...

hi superstar,
thank you very very much!!!!
i wud like to know the future of
English indian clay & Disa India !
What are ur views on that ?

sandy said...

Hii Superstar Navin Bhai 1st of all How are u ? Really Unichem Lab is Mindblowing..The Market is Volatile But Unichem Lab has started showing Dance on the Screen.it Reaches Rs212 High Ur Analysis View is Really Great i were taken Unichem lab 2000shares @Rs190 ..Thnxxx

ketansolid said...

Hi. Great recommendations!

Can you include me in yuor mailing list? My ID is ketan@vsnl.com

Ketan Shah

pidugu said...

Hi superstar,

can you include me as well..

my id is harsha[dot]devulapalli[at]gmail[dot]com

Mathe said...

Hi Superstar Thanks for giving us wonderful recomendation. could you please include my email id mail_me67@yahoo.co.in in your group list.

Thanks,
Mathe

vijay said...

Navin, I missed this and saw this new post of your after the trading session.
Can i enter into Spicejet or Unichemlabs Now?

I did buy Ambica Agar at 27, since then it is going down. Is it worth waiting for some time or exit

Regards
Vijay

ritun said...

i m a new in this market i just want ur help

ritun said...

hi super star what i have to buy today

ritun said...

hi hi hi

ritun said...

hi i have purchase unichem and i have got 20 percent profit in it thanks a lot

Superstar said...

Hi friends,

Just a quick clarification here. Pls DO NOT leave your email addresses here. I DO NOT have any mailing list, as of now, and I DO NOT send any recommendations by email. You have to visit this site regularly to know of my latest picks.

Cheers!

aksaks said...

hi superstar,
thank you very very much!!!!
i wud like to know the future of
English indian clay & Disa India !
What are ur views on that ?

Superstar said...

UNICHEM LABS UPDATE

For Unichem Labs, Karvy had earlier set a target of 330. It is confirmed news, which was even broadcast on NDTV, that Reliance Capital has picked up a stake in Unichem Labs just a few days back. I remember even Sharekhan had recommended a buy on Unichem Labs. Last year, in December, Unichem bought out the remaining 40% stake in UK-based subsidiary Niche Generics Limited, making it a wholly-owned unit. Niche Generices is expected to post revenue of 13 million pounds in FY08, rising 17 percent over last year.

Chairman and Managing Director P.A. Mody told Reuters in a recent interview.'We hope Niche will near breakeven by March 2008. The turnaround phase will start after that.' 'It is expected to turn profitable by 2008/09,' he added.

Unichem also plans to invest 1 million pounds to set up a captive packaging unit in Ireland by April to cater to Niche's customers, Mody added.

Unichem Laboratories is in talks with a few Brazilian drug firms for a $20-25 million acquisition, after it failed to seal a takeover deal there, a top official said, forecasting a faster revenue growth for FY08.

'We are in talks with certain companies,' Chairman and Managing Director P.A. Mody told Reuters in an interview. 'If something materializes we will know in 3-6 months.'

He declined to name the firms.

In January, Mumbai-based Unichem was close to buying a Brazilian firm with a marketing network and a few product approvals. However, 'that did not go through,' he said citing lack of financial and operational efficiencies from the merger.

Brazil's pharmaceuticals market, estimated at about Rs. 386 bn, is growing at 32% a year. Unichem is also planning an acquisition in the Indian market. It is on the lookout for a formulations company that has less than 20% brands clashing with Unichem’s portfolio.


The acquisition will be funded through internal accruals, he said.

Taking a note of all the developments mentioned above, it is evident that Unichem Labs will be on a fast growth track in the future. At present price, the stock looks quite undervalued and medium to long term targets of 360 and 475 look justified.

Cheers!

Superstar said...

Hi Aksaks,

I had replied to a query on English India earlier also on this site, elsewhere. You can search for it by typing the keywords in the search bar on the main page.
I don't track Disa India actively, but do know that it is an Engineering company currently trading at a PE of 17 or so, and looks fairly valued to me, at present. Maybe an upside of 10-20% maybe there in the stock in the short term, depending upon market sentiment.

Cheers!

vinay said...

dear superstar,
i am ta great fan of your recommendations.
kindly add my id to your mailing list,
thanks.
vinaysjoshi@hotmail.com

Maverick said...

Superstar
Thanks for your recco on Gufic Bio. I booked profits there at current levels and looking for your recco to enter elsewhere. I already entered Unichem at (200 shares@192.3)and not entirely sure about entering Unichem for some more again at current levels of 217. Do you have anything else in mind for now? I have entered your another recco Aurobindo also (35 @ 532.65).

Superstar said...

Hi Maverick,

You are welcome. Those of you who booked profits in Gufic Bio at 20.80 on my call should keep their money ready to enter my next MULTIBAGGER STOCK WHICH COULD BE HOTTER THAN GUFIC. Those still holding Gufic can ride it as far as it would go, as it seems there's still some steam left in it. But on a trend reversal in Gufic, be quick to shift to the next hot stock which is coming up soon.

Cheers!

MANISH said...

hi navin bhai,
thanx for all ur wonderfull and fruitfull recos.

sincerely tracking your reco.

pls add my mail id mdsanghavi@hotmail.com .

regards,
manish sanghavi

AMIT said...

DEAR NAVINBHAI,

THANX FOR UR WONDERFULL RECOS. SINCERELY FOLOWING UP WITH THEM .

PLS ADD MY EMAIL ID mdsanghavi@hotmail.com

Regards,
Manish D sanghavi

Amit said...

Hi Superstar..
I am following ur tips sincerely.
Hope not to miss any of them in future.So can you plz. add me in ur mailing list?
my mail id is amitpatank@gmail.com

Thanks,
AMit

Superstar said...

IMPORTANT NOTICE

Dear all,

Please DO NOT post your email addresses in your messages on this site as I do not send any recommendations by email, as of now. This website is visited by thousands of people from all over the world and if you post your email addresses here, then you expose yourself to the risk of receiving SPAM (unwanted emails) from all sorts of people.

I keep posting new tips on this site from time to time, so you just need to check this site regularly for updates.

Cheers!