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Unichem Labs - Finding favour with funds

Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=321
Printed Date: 20/Apr/2025 at 6:08am


Topic: Unichem Labs - Finding favour with funds
Posted By: RAKESH
Subject: Unichem Labs - Finding favour with funds
Date Posted: 05/Sep/2006 at 5:22pm
sir i wnt to why u dont post message on any pharma company...
and want to know of unichem labs


Replies:
Posted By: basant
Date Posted: 05/Sep/2006 at 5:53pm
We did discuss http://www.theequitydesk.com/forum/forum_posts.asp?TID=263 - Vimta Labs - which is into contract research and the stock is also up from some Rs 158 to Ts 195 today.Boradly I do not understand pharma and technology and that is why I  do not write about them
 
Unichem (CMP Rs 239) does appear attractive at a trailing PE of 10.5 times.. The stock is in demand and is being accumulated by Templetoon, and investors could hold on or buy more also.
 
The company ahs shown consistent growth over the past 3 years and that too without diluting additional equity.The Return ratios are also very healthy.
 
Now on the down side the dividend yield at 4% looks great as any fall in price will make the yield more attractive and arrest the downside.
 
But as I keep repeating with pharma and technology it is very essential to have some idea about the business as an investor cannot go with financials alone.
 

CMP

Rs 239.15

Market cap

Rs 860.94

Sales Fy 06

453.15

EPS Fy 06

22.48

Dividend

10.00

PE

10.5 times

RoE

29.47%



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'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: manishdave
Date Posted: 16/Sep/2006 at 11:02pm
I am watching this company for long time. It has increased dividend very consistantly has given bonuses. Growth is very good after handsome dividends and without dilution. Price doent tell what this company diserves and I look this as an opportunity.
 
 

Posted By: monu_duggad
Date Posted: 17/Sep/2006 at 8:01pm
Manish/Basantjee
 
Whats your take on Matrix labs ? I got in during the acquisition announcement by Milan.


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If you think you can,You Can

Posted By: sajanvm
Date Posted: 17/Sep/2006 at 10:33pm
Both Unichem Labs & JB Chem are of similar size and are available at 10 PE. Indian Pharma market is extremely attractive and is growing at 15% (see the latest report on World Pharma market) in the HDFC Securities website.
I believe that both Uncihem & JB Chem are re-rating candidates. They trade at commodity valuations when for example JB derives over 90% of revenues from branded formulations. They both have excellent track records of performance & shareholder rewards over a long period of time.
It is interesting that New Vernon private equity subscribed to a preferential issue from both these companies last year - at prices that are about 20-25% higher than today's market price.


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Sajan

Posted By: excel_monkey
Date Posted: 29/Nov/2011 at 10:59pm
Any reason why this quality name has been beaten down?
Inventory adjustment cannot suffice as the only reason

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I have a vested interest in the stocks I discuss, therefore I would request you to kindly consider my comments with a pinch of salt and do your own due diligence

Posted By: rapidriser
Date Posted: 29/Nov/2011 at 10:02am
Originally posted by excel_monkey

Any reason why this quality name has been beaten down?
Inventory adjustment cannot suffice as the only reason


Thanks EM for bringing this to my notice. Definitely looks interesting at these beaten down levels.




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When all else is lost, the future still remains. - Christian Nestell Bovée

Posted By: hit2710
Date Posted: 29/Nov/2011 at 10:18am
Originally posted by rapidriser

Thanks EM for bringing this to my notice. Definitely looks interesting at these beaten down levels.


Yes it does look interesting. Its cardiac brands are well established.

If one looks at the results for the last three quarters then there is sequential improvement. Compared to earlier year quarters the results do look poor but these were due to the restructuring taken up by the company.

Unichem is a company with negligible debt and gradually seems to be getting on track. Worth keeping a watch on.

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Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.


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