But looking at its website, it doesn't look like a Ranbaxy or Dr. Reddy clone. Before taking an investment decision, one should have faith in the capabilities of the R&D team to come up with new products.

 

If development of APIs and CRAMS is their forte, the way forward for companies like Nectar is heavy investment into R&D. The percentage of  R&D expenses with respect to sales - this is an important parameter when analyzing such companies. If you see R&D expenses going down, it is definitely not a good sign.