Vimta Lab-Contract research will drive growth here
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Emerging companies - Mid caps that can become large cap
Forum Discription: These are companies operating in growing markets having have certain niches or specific attributes like new sector plays. These are emerging multibaggers with high risks and high rewards.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=263
Printed Date: 19/Apr/2025 at 9:22pm
Topic: Vimta Lab-Contract research will drive growth here
Posted By: reetesh
Subject: Vimta Lab-Contract research will drive growth here
Date Posted: 02/Sep/2006 at 1:03am
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Right, you do some financial reading for me regarding Vimta Lab, I dont think there is as much of problem in understanding Vimta Lab because it has different business model than any other pharma company I think Vimta is in not pharma in true sense, they are targeting 100cr. sales this year and Rs.440cr (US $ 44) sales in 2010. EBIDTA margin 45%.
I must say that you are as passionate about stocks as I am, good to have you as advisor.
Regards,
Reetesh. ------------- When going gets tough, that’s when tough (people) gets going. |
Replies:
Posted By: basant
Date Posted: 02/Sep/2006 at 9:58am
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A company that increase sales by five times in four years at a constant profit margin will be more then a five bagger in terms of price Vimta Labs – Contract research will drive high growth Vimta seems to be engaged in contract and clinical research for major foreign companies. It is trying to encash on the cost differential structure that we have with the West. Over the past two years the margins of the company have expanded probably because of increased focus on clinical research Clients include six Fortune 500 companies and three of world's "Top Ten" generic drug development company.
Companies such as Vimta cannot be evaluated on PE basis alone. This is because a small cap company could have a radically different PE even if it gets a couple of its acts together. So the financials above should be more as a reference point rather then a complete guide to analysis. The company ahs a vision statement to be among the top 10 global research and Contract Company by 2010. This seems very interesting. The company intends to grow both organically as well as inorganically. The mere scale of opportunity makes one believe that there is more to this company then mere financials .Contract research could be a big thing and once a company gets its act together pharmaceutical is one industry that can put it in the higher league. Though their business models was very different an investor could think that Matrix was a Rs 4 crore company in 2001 which the promoter “ The Indian clinical research market will be a US $ 1 billion industry in 2010 from the current level of US $ 100 million. A ten fold growth in 5 years at a CAGR of 58% The company intends to get into newer areas like Genomics (detailed study of the human DNA system) Proteomics (plays a role in the life of organism and helps in discovery of causes of certain diseases.) The proposed food safety bill will increase create stringent testing compliances for the Indian processed food industry and that is another area where Vimta is looking at. Recommendation: Vimta is a company to keep an eye on.. If any body could fill us in on the business processes in further details a better understanding of the stock could be developed. Apart from that the stock does appear to be a buy at current levels for a 3 – 5 years perspective in which the investor should be able to multiply wealth. Source company website and bseindia.com ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
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Posted By: prashantmohta
Date Posted: 04/Sep/2006 at 1:49pm
| a true story is yet to happen.but the main thing is that you have simplified thing so well that the stock is up 9% today. |
Posted By: reetesh
Date Posted: 04/Sep/2006 at 2:22pm
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Dont look at it from day to day basis you will miss the bigger story, buy and hold it. ------------- When going gets tough, that’s when tough (people) gets going. |
Posted By: safir
Date Posted: 04/Sep/2006 at 10:30pm
| Many things augur well for Vimta. It's Genome Valley extension for life sciences is one. The recent debacle with Coke and Pepsi and the resultant beeline for research and testing labs cd be another.The clinical research for pharma cos. shd also look up, more so with larger players in pharmaceuticals entering India and who might be sceptical of using existing Indian pharma co's testing bases for business considerations. Vimta has also successfully raised funds through Voyager Funds. Franklin Templeton Small Caps also picked up equity. I would rather not consider FII activity as a trigger but the fact that past expenses on capex should now pay well. At the same time, one should consider the virtues of patience for meaningful rewards from the scrip. |
Posted By: reetesh
Date Posted: 05/Sep/2006 at 12:45pm
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Hi Basant,
Do you have any knowledge about what is the current market size of contract research in India.With Data protection coming in Vimta will benifit. Contract research will be big driver with this policy for the company.
Regards,
Reetesh. |
Posted By: basant
Date Posted: 05/Sep/2006 at 3:03pm
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The clinical research market is about US $ 100 million and shoukd grow to US $ 1 billion by 2010 A CAGR of 58% while the clinical reference lab market at US $ 500 million is growing at 20% p.a. The advent of health insurance nd better medical awareness coupled with growing incomes should also increase the growth rate of the clinical refrence labs.
This occured to me when dentist told me to get an X-Ray doen. There a few clinical labs in my area and I went to one of them and found it crowded I tried looking for the other two and all of them were crowded. There could be two reasons for this eIther people are getting more sick or they are paying more on medoiical treatment either way it helps the labs.
The growth in clinical research market is HUGE. 10 times in 5 years! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: reetesh
Date Posted: 05/Sep/2006 at 11:39am
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It look as if provked Vimta Lab.. Some loved your report. ------------- When going gets tough, that’s when tough (people) gets going. |
Posted By: reetesh
Date Posted: 05/Sep/2006 at 11:40am
------------- When going gets tough, that’s when tough (people) gets going. |
Posted By: prashant
Date Posted: 06/Nov/2006 at 12:31pm
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Hi, Thought I will add my few cents on Clinical Research space. It can be broadly divided into two areas 1. Contract research - where the firm tries to discover new drug molecule on a contract basis. A very high value added function, that can give high returns but can have a high failure rate as well 2. Clinical trials - where a firm will carry out clinical trials ( phase I to phase IV) for a large pharma co. These trials can run upto 7-12 years.Here the business processes involved are - Locating sites ( hospitals ) for clinical trials - Recruitment of investigators ( doctors) and volunteers for the trials. - Project management of clinical trials, managing the regulatory procedures - Data management Clinical trials are manpower intensive areas where quantum of revenue is assured, but per person revenus is lower than contract research. Cost of conducting a clinical trial can be anywhere between a few million to hundred million dollars. Thus Clinical researcg cos. have a fairly good revenue+ profitability worldwide. Contract research as well clinical trial projects are coming to India primarily due to
1. Lower cost of conducting clinical trials ( cost is upto 30-40% lower than in West)
2. Availability of knowledgeable PHDs and science grads.
3. Availability of large patient population ( non anglo saxon ) to study effects of new drugs.
Thus going forward, it will be another IT /ITES like sunrise field for Indian companies who have well trained staff,stringent Quality focus, good market reputation and most important, US FDA approved facilities.
In terms of competition, there are many big names such as ERT, Quintiles, Covance, etc either already in India or setting up their shops. These are big multinationals, have deep pockets and tons of experience in dealing with all major multinationals as well as FDA.
From whatever I read on Vimta Labs, they are trying to enter both the areas. Thus going forward they can have a fairly good opportunities available.However they will have to deal with the competition from the above mentioned players and a few Indian cos. present.
Hope you find it useful. ------------- Prashant |
Posted By: omshivaya
Date Posted: 06/Nov/2006 at 8:30pm
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"The company ahs a vision statement to be among the top 10 global research and Contract Company by 2010"
Basant ji,
What is the approximate revenue of the 10th global player in this area? Just wanted to know what Vimta is targeting?
Thanks and just a rough idea would do. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 06/Nov/2006 at 8:39pm
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At least more then US $ 500 million - This is a wild guess though people working in this industry should be able to provide a more reliable guess. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 06/Nov/2006 at 8:42pm
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So, they are targeting something like 2200 crores and are now around 100 crores(approx.).
By the way who is the leader in India for CRAM? Vimta? ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: omshivaya
Date Posted: 06/Nov/2006 at 9:43pm
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Basant ji, your gut feeling on this one? 2200 crores target by 2010-11 and right now around 100 crores(assumtpion). It means a 20 times revenues generation in next 3-4 years?
What do you know of this one or feel on this one? We talk of Pantaloons and TV18 but I dont see so much of your passion for this one? That is why I am asking what do you feel on Vimta? Is it the leader in India in its industry(which is CRAM I suppose)?
Please put in a detailed view kindly. Really would be thankful for the same. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 06/Nov/2006 at 10:02pm
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I do not understand these companie that is why I do not comment/write (invest) but if we could have some one who knows what this business is doing then Vimta is a potential multibagger no doubt. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 06/Nov/2006 at 10:13pm
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Basant ji, Vimta Labs is targeting 100 mill US$ by 2010 so the 10th player has to have a revenue around 100 mill. I did a lot of search on google and have found a link to an article by Vimta which points where they plan to be. It also gives a lot of details and hence will be helpful to you too to analyze it.
Here is the link: http://www.vimta.com/vimtapresentation0106.pdf - http://www.vimta.com/vimtapresentation0106.pdf
It was written in early 2006 so stll relatively fresh stuff. At 100 mill US$, we have a 40-50% CAGR for next 3-4 years or maybe a bit more. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: omshivaya
Date Posted: 06/Nov/2006 at 10:18pm
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Also, this article may be of interest:
http://www.expresspharmaonline.com/20061031/management06.shtml - http://www.expresspharmaonline.com/20061031/management06.shtml
------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 06/Nov/2006 at 10:23pm
That was well off my wild guess!Now you know why I do not back myself on these companies. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 06/Nov/2006 at 10:38pm
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Hehe! It's okay. After BPO, KPO is an area where a lot of excitement is. Educomp is one and in Pharma, Vimta seems to be the one. Even at 100 mill, Vimta would still have a huge addressable market after that, bcoz Indian addressable market would be 1 bill US$ in 2010 and I am not even talking of companies abroad outsourcing to Vimta. Maybe someone who can talk facts and figures, may want to give a detailed view on Vimta, if they want to. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: kulman
Date Posted: 06/Nov/2006 at 10:48pm
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Great links Om Shivaya jee. Your research is worth much more than Vimta's contract research. Other members from Pharma background could also add more insights....Looks interesting
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: omshivaya
Date Posted: 06/Nov/2006 at 11:34pm
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Thank the internet not me. It is a great tool for finding anything even though they dont know much about the company initially...BUT only if someone is really willing to find it obviously. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: BubbleVision
Date Posted: 06/Nov/2006 at 10:18am
OmShivaya - after seeing at your progression from the date of you joining this wonderful forum, i am clearly seeing a remarkable improvement in you as an analyst. This is definitely the way to go and congratulations.....KEEP IT UP. 
Keep on enlighting me on the fundas as i am a tech guy.... Very little apart from the price behaviour goes into my mind.  ------------- You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer! |
Posted By: basant
Date Posted: 06/Nov/2006 at 10:33am
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BubbleVision is right. Even I have seen some high quality posts from OmShivaya of late. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: deepinsight
Date Posted: 06/Nov/2006 at 10:37am
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I would like to add some information:
The company had shown great numbers till 2005 (about 50 cagr) when they hit capacity constraints. They embarked on an major expansion plan completed last quarter when they moved to their new facilities. The numbers have been flattish last few quarters. The company has to prove to its shareholders that it can deliver again. I have strong conviction they will.
The new facilities allows them to acquire new customers and continue to execute on their ambition to be USD 100 million rev company by 2010. This is from about USD 12-13 million they did in 2006.
Their strength is visible in their margins and breadth of offering.
They derive their competitive advantage through many facets:
their facilities
their expertise to support many world class companies (customers)
govt accreditations
trained personnel
strong vision
My recco: "buy right and hold tight" for many years. ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: s_praharaj
Date Posted: 07/Nov/2006 at 10:01pm
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As far as my knowledge goes Nicholas Piramal is the biggest player in India in the CRAM segment. ------------- Shashi Praharaj |
Posted By: omshivaya
Date Posted: 07/Nov/2006 at 11:53pm
Oh my! Now I am blushing. So Basant ji, you  to see me blush 2 like u do udayan hehe!
Just kiddin'. I hope you have heard: "Necessity is the mother of invention". My need for the next 4 years financially is pretty big and hence I have no choice(necessity) but to learn fast. I cant describe how much more I have learnt on this forum and by searching the NET.
Bu to finish it up, I just wanna say that whatever I write and say I have only learnt from someone else, e.g. Damani ji, Basant ji, RD ji, someone's post on this forum, someone's article on the web, someone's chat somewhere. None of my ideas are mine. I just repeat what I have learnt from others.
On another note, I have a request for Basant ji. On each financial year start, please be kind enough to post the projected or expected EPS of all the firms in the EquityDesk TEAM XI for the next financial year. You are extremely good at numbers and without your EPS projections I wouldnt have been able to visualize so many things.
That way we all can know where the path is headed for these firms and if they have slipped up on the earlier projected EPS.
If possible, can you also do an analysis for "yes bank" plsssssssssssssss. You can just include the EPS for FY08, FY09 if you so please. I am asking since you are good at numbers. Plsssss.....You can take as much time as you want! ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: deepinsight
Date Posted: 28/Jan/2007 at 11:00pm
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the top line was flat and bottom line dissapointing.
Do forum members have a clue on what the company is doing to deliver on the growth the company has projected? ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: basant
Date Posted: 28/Jan/2007 at 7:48am
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I am not sure but with companies like Vimta we should take a more then one quarter approach. The opportunity is tremendous and apart from this company there are not many focused players to choose from. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Mr. V
Date Posted: 04/Mar/2007 at 7:28am
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Vimta is trading near its 52 wk lows. The market is probably ignoring it because of the last few flat quarters. If one believes in the future opportunity then it might be a good idea to get in.
Any news on new deals ? |
Posted By: kaushalchawla
Date Posted: 04/Mar/2007 at 8:42am
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I dont remember company announcing any positive news since a long time....how are they going to achieve their 2010 goals? ------------- Warm Regards, Kaushal |
Posted By: kaushalchawla
Date Posted: 27/Apr/2007 at 1:12am
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Quarter of dismal performance. 95% decrease in the profit compared to corresponding quarter of last year. Sales down by 10%. ------------- Warm Regards, Kaushal |
Posted By: Mr. V
Date Posted: 27/Apr/2007 at 2:10am
| Looks like Vimta is having trouble moving to the next level. |
Posted By: kaushalchawla
Date Posted: 28/Apr/2007 at 9:07pm
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I think they are having trouble keep themselves in the same orbit....they showed steep decline in their results, they could not even retain them. ------------- Warm Regards, Kaushal |
Posted By: deepinsight
Date Posted: 28/Apr/2007 at 10:50pm
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One needs to take an private company view on this company and the opportunity they represent.
We know that the company has recently moved to new premises with expanded capacity which they claim to be of very high quality. Getting equipment, getting approvals, accreditations, hiring people and training, customer acceptance etc. takes time (and more time) and resources (financial, knowhow and people).
May make sense to keep an eye on how they progress in the business and financials.
------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: shivkumar
Date Posted: 09/Oct/2007 at 12:48pm
| been checking on vimta on moneycontrol. looks like a lot of MFs particularly Reliance Pharma fund is buying into this stock at existing rates. |
Posted By: gaurav_kmr
Date Posted: 13/Nov/2007 at 4:39pm
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This is an old interview of the vimta MD. http://biospectrumindia.ciol.com/content/movers/10410052.asp It's said that the analysis of the comany should start from the managment. When the MD himself is not too optimistic about the prospects of clinical trial what more can be said about the future of this company? |
Posted By: shivkumar
Date Posted: 13/Nov/2007 at 5:49pm
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omji, what is your take on vimta labs? am taking a good look at the CRAMS sector after field reports from colleagues indicated that it has huge potential in the coming years. How will companies like Vimta and Suven fare in converting this potential to real possibilities? |
Posted By: basant
Date Posted: 13/Nov/2007 at 7:57pm
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Divis was also in trhe CRAMS sector and so was Vimta. But Vimta has been a dud with a capiutal "D".
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kanagala
Date Posted: 13/Nov/2007 at 9:49pm
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Hi Shiv, Have you looked at Nicolas piramal. Price is not moving for past one year. It looks like the case of waiting for earning to catch up. ------------- While one person hesitates because he feels inferior, the other is busy making mistakes and becoming superior. |
Posted By: omshivaya
Date Posted: 13/Nov/2007 at 9:57pm
No idea Shiv jee. I was just looking at this sector some months back, but then shifted focus to other things. Sorry!! ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: nikhil090
Date Posted: 13/Nov/2007 at 10:48pm
| Have a look at bilcare also. It is also moving in the same space - in the formulation development part of CRAM and further into clinical trials and education related to Clinicals.. It seems they are diversifying well.. |
Posted By: deveshkayal
Date Posted: 03/Jan/2008 at 9:18am
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StanChart Premier Equity Fund increased their holdings in Vimta yesterday. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: somu0915
Date Posted: 02/May/2009 at 12:37pm
| Any news on this company? Anyone tracking it? |
Posted By: nav_1996
Date Posted: 03/May/2009 at 5:10pm
| This has been gross under-performer over last 7-8 years in terms of business. Execution ability of management is big Q. |
Posted By: Kalyan
Date Posted: 07/Sep/2009 at 7:12pm
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basant what is ur view about Vimta Lab in todays maket perspective ------------- kalyan |
Posted By: basant
Date Posted: 07/Sep/2009 at 7:41pm
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Better options are available!
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: deepinsight
Date Posted: 07/Sep/2009 at 8:01pm
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These guys have over promised and under delivered for years.
Maybe the Stand Chart guys know more...but looking at past operational performance its a big Q? ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: nav_1996
Date Posted: 07/Sep/2009 at 8:14pm
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True. This was a big hype 3-4 years back. Google for old articles. But management could not deliver.
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Posted By: TCSer
Date Posted: 07/Sep/2009 at 11:24pm
| VIMTA IS THE ONLY LISTED CRO player now .The CRO segment is growing by leaps n bounds.One needs to closely track this once promising play. |
Posted By: Kalyan
Date Posted: 08/Sep/2009 at 4:42pm
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Basant then your suggestion for a pharma stock that can be taken for 3-4 years view ------------- kalyan |
Posted By: basant
Date Posted: 08/Sep/2009 at 5:00pm
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No idea if ever look at Cipla except this all others are playing the Russian Roulette! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Kalyan
Date Posted: 09/Sep/2009 at 5:05pm
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Today news TCG LifeSciences ,Kolkata filed for an IPO a CRO Company promoted by Purnendu Chatterjee close associate of George Soros.GOOD SECTOR TO LOOK INTO. ------------- kalyan |
Posted By: TCSer
Date Posted: 09/Sep/2009 at 7:32pm
| TCG SEEMS to be an excellent company.Lets participate as equity holder in a Bong promoted company. The other successful examples of Bengali owner which comes to my mind is Essdee aluminium & TIL.Not so good example is IFB.IISCO etc. |
Posted By: vsb2pwn
Date Posted: 09/Sep/2009 at 2:32am
 
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Posted By: vsb2pwn
Date Posted: 09/Sep/2009 at 2:50am
Yes Sir, The Chatterji Group, indeed know their business. Please enlighten me on this proposed IPO thing 1. They have three divisions or group companies looking after various aspects of research. Chembiotek, Clininvent and Labvantage. Are they going to list these all under TCG Lifesciences? 2. Is the proposed IPO linked in someway to Centre for Genomic Application, a public-private initiative? I even being a non bong  am looking forward to the IPO. 
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Posted By: TCSer
Date Posted: 11/Sep/2009 at 10:49pm
Go thru their DRHP on sebi website to get more info.I dont have the exact details. |
Posted By: TCSer
Date Posted: 11/Sep/2009 at 10:50pm
| IDFC smal & midcap MF has purchased 12.5 lacs shares of Vimta in Aug 09 .This MF portfolio is quite impressive. |
Posted By: TCSer
Date Posted: 24/Oct/2009 at 12:22pm
| Ny idea about its results |
Posted By: neerajlulla
Date Posted: 24/Oct/2009 at 1:38pm
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vimta lab is looking good ------------- buy and forget for long term |
Posted By: dibyendu
Date Posted: 25/Oct/2009 at 1:37pm
| dishman pharma another contract research player worth looking. |
Posted By: neerajlulla
Date Posted: 25/Oct/2009 at 7:30pm
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bad results ------------- buy and forget for long term |
Posted By: TCSer
Date Posted: 25/Oct/2009 at 10:48pm
| hv u analysed the results? is there some onetime problem or consisitently the results are bad? |
Posted By: Sooraj
Date Posted: 20/Sep/2011 at 11:55am
| The stock is trading almost at life time low - As anyone had a look at the recent results Similar companies in the space, like of Divis, etc, have been preforming very welll in falling market as well |
Posted By: InvestEnjoy
Date Posted: 27/Sep/2011 at 1:12pm
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Dear Sooraj, Vimta looks to be a good investment at these levels.There is virtually nothing to loose here and only gain. The company on a turnover of approx 100 crores throws Operating cash flows of 15-20 crores for last two years.This year it is 8 crores due to some one time expenses it has had to incur.Although I agree the the net cash at the end of the year is paltry 1.40 crores as company is even now investing heavily in building capacities Whats more the Mcap of the company is just 50 crores approx. It has invested a lot in building capacities of world scale.Has got almost all certifications required in the business.Gross block of almost 200 crores if I do not include the depreciation.Has been built on 22 acres of land in genome valley.The land itself must be worth 20 crores. One decent size partnership in the contract research space and the companys stock price can multiply from here. I would consider it as a distressed buy and bet on it. ------------- One lesson born of experience is that that best course in investing is often to do nothing.Thats a hard lesson to apply in practise,given the propensity most of us have for tinkering. |
Posted By: InvestEnjoy
Date Posted: 30/Sep/2011 at 4:05pm
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Called up Vimta today.They said they are off since last 15 days due to Telangana Agitation.They work for just 2 days in a week.Employees are scared to come to the office.Transportation facilities stop abruptly.
------------- One lesson born of experience is that that best course in investing is often to do nothing.Thats a hard lesson to apply in practise,given the propensity most of us have for tinkering. |
Posted By: bsk0404
Date Posted: 24/Dec/2011 at 4:00pm
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what is wrong with this company keeps coming down and down. disclosure. i dont hold the stock. ------------- There are only 2 tragedies in market 1st buying a good stock at wrong price 2n buying wrong stock at any price. |