NIFTY (5495), Nifty after making fancy high of 6111(27 Month high) on 29th January 2013 has corrected till 5487 almost 10 % from recent high.
Nifty has closed below 200 DMA 5645 while 200 Weekly M.A 5329 would form next support.
SENSEX (18226) has corrected till 18206 and strength is lacking and till Gap-down (19383-19378) is not crossed Month of April and May 2013 could see some pressure on overall market as we ahead towards result season and Budget session of parliament restarting 22nd April, 2013.
 |
| A. K. Prabhakar |
Pick Of the month - NATCO PHARMA
· Revenue distribution - Domestic formulations 40 %, API's 28 %, exports formulation 13 % and others 19 %.
· Recent Supreme Court ruling on Glivec case is favourable for Natco as Natco's sales from this product is about Rs. 25 Crore annually.
· Strong growth continues in API business and export formulation. Change in revenue mix (a higher proportion from high margin API business) is also contributing to the bottom line as well.
· API business growth is seen due to increased supply of niche category APIs to domestic & export markets and export formulation is led by recently-announced Lansoprazole approval (a prescription product).
· Successful monetization of para IV opportunities (Lansorazole OTC, Revlimid, Tamiflu, Copaxone etc) would provide substantial performance.
· This will further be reflected in improved ROCE to 16.6 % by FY15 and drop in DE to 0.2 x in the same period.
· The stock trades at valuations of 15 x FY14e and 12.7x FY15e earnings.
Mr. A K Prabhakar
Senior Vice President - Equity Research
Anand Rathi, 4 th Floor , Silver Metropolis, Jaicoach Compound Opposite Bimbisar Nagar, Goregaon(East), Mumbai - 400 063. India
Tel No: +91 22 4001 3700, Direct: +91 22 4001 3999, Fax No: +91 22 4001 3770
Website: www.rathi.com, Email: akprabhakar@bloomberg.net
No comments:
Post a Comment