Kerla Yruveda - A Story in Making
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=333
Printed Date: 21/Apr/2025 at 1:13am
Topic: Kerla Yruveda - A Story in Making
Posted By: surajmnair
Subject: Kerla Yruveda - A Story in Making
Date Posted: 12/Sep/2006 at 4:32pm
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Great Regards to Basantji and all others who are contibuting to this particular website. The content is mature and sensible.
I also echo the same investment philosophy and hence dicslosing a new story.
Kerala Ayurveda Pharmacy Ltd KAPL) BSE CMP 58-60
Katra Helath Care of Ramesh Vangal bought 61% stake
Vangal is considered to be the father of PEPSI in India.
Sanjoy Mohanty joined KAPL as MD after resigning from Bharti Airtel.
Procter & Gamble's former President Far East,Ronald Pierce joined as Vice president for KAPL.
KAPL last year - loss making - 44 lacs.
This year 1st Q ' 07, consoldtd profit 27 lacs.
Do you know ayurveda is the second largest growing industry after IT.
Dont u think that their is a story in making, forget all financials.
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Replies:
Posted By: surajmnair
Date Posted: 12/Sep/2006 at 4:38pm
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Kerala Ayurveda Pharmacy Ltd on |
Posted By: basant
Date Posted: 12/Sep/2006 at 4:41pm
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This seems to be a very interesting space.. With niche small cap plays a good management is a sine-quo-non. Scalability can come anytime. Can you add something more about the management. I.E If you have been following the company for about a year have they been proactive with their plans to the shareholders and other such things. Meanwhile I would also try to check up. ------------- '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: kulman
Date Posted: 12/Sep/2006 at 4:51pm
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Seems very interesting...
Look at what effect Swami Ramdev had, he has made Yoga hugely popular. And believe me, its very effective..
Especially those day traders there need regular Pranayam (with such volatile markets!!  )------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: omshivaya
Date Posted: 12/Sep/2006 at 6:01pm
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Ayurveda, hmm? Does have a good potential. But it is important to understand what Pharms cos. will do to ensure people use their allopathic products instead of going for ayurveda. yoga, asanas I can understand but ayurvedic medicenes - will it be able to take a pie off the pharma cos. I would hope so, as ayurveda is natural and has less or no side-effects. But financially, dunno. Let's hear what Basant jee comes up with! ------------- 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: surajmnair
Date Posted: 12/Sep/2006 at 6:43pm
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Im in touch with the same person who is closely related to damani.Infact we both together went for KAPL AGM, and it was we in conjuction who had put across the same to Damani.True to its form we both are working together.
However, to understand the balance sheet of the company and their commitment to sharehoders is too immature at this point in time since katra had taken stake only a few months back.Whatever the company has done has become history.Now new management , new plans.For disclaimer purpose myself and a few has already taken stake believing that their is story unfolding and will exit when the story is deemed to cease.
I had personally spoken to Vnagal during its AGM in kochi and is well convinced about his involvement in this.And i beleive within six months time they will come up with an Anlysts meet which they promised and also shows their commitment to shareholders.
No one abroad especiall in America,will consume an altenative medicine without any knowledge.For Ayurvede to make its mark abroad, they should understand the lifestyle of Ayurveda.KAPL's move to tie up with differnet Amercian Universities to intiate teaching on Ayurveda, is indeed the right start.It could well be a initial platform to the sell their products.
I feel their is a good story behind and thought will pass on the same to you. Good companies can give us a 30-40% return but their are only a few which delivers a fortune.To identify them it is very easy but to make a decision its difficult.By the time we act on that , it would have already run up.Implemetation is the key.So i bought this story.............will be contiued,
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Posted By: Equity Buff
Date Posted: 12/Sep/2006 at 7:08pm
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Dear Suraj, Your post on Kerala Ayurveda looks very interesting. Today alternative medicine is really becoming popular worlwide. Mr. Vangal is know to be an excellent businessman and could take this company places. I like the initiatives they have taken in the U.S..
Are you based in Kochi ? Does Kerala Ayurveda has any Ayurvedic spa's in Kerala or any where else or are they currently only manufacturing Ayurvedic medicines ?
Also a friend of mine was telling me that they have got huge land near the Kochi Airport and since this land has appreciated substantially they may sell it and develop new aurvedic spas on other land. Do you have any information on this.
Rgds
Equity Buff
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Posted By: omshivaya
Date Posted: 12/Sep/2006 at 10:45pm
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Xcellent post suraj. When is the AGAM. 6 months from now, means in March or April? What are the proposing to disclose in that AGM which you think would be shareholder-friendly? Also , you seem to have bought sometime in 2005? You had that discussion with RD in August 2005 correct? Has it issued any bonuses since then? From that price in August around 100s, it is around 50 bucks now? Would you explain why so? Is this all bcoz of the May meltdown or is there some other news behind it falling too?
What kind of target have you set for Kerala Ayurveda in revenues or how long do you plan on holding AT LEAST or is this just a 1-2 years hold for you? ------------- 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: surajmnair
Date Posted: 12/Sep/2006 at 10:20am
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Dear Everyone,The person in touch with Damaniji is my friend and co worker Mr Sanuj, who will be joining this group sooner.
Dear Omshivaya, they indeed have SPA , check oout www.aurvedagram .com.Also please check http://www.ayurvedaonline.com - www.ayurvedaonline.com
Their property near Kochi airport is where their corporate headquarters is located and is on 2 acres of land.Adjacent to that is their manufacturing facility.they also have another land for their cultivation purposes.I dont think they will be selling up these lands.However they are shifting their manufacturing facility to a nearby place.So there are chances athat their existing manuf: facility, they might tun it into a SPA.
They already had their AGM on this month start.They hope to have a analyst meet in 6 months from now.Im just digesting their words for the moment.
I had taken an initial postion in the company very recently.The stock shoot up last time on the news of takeover of KAPL by Katra group.
Since market was at an alltime high (if im correct)most of them had exited from the counter.As you know fast money is always golden.Howerver i missd that oppurtunity.My words , please dont consider this as a recommendation.I just passed on to you a story.I blive KAPL will shift their entire focus to Bangalore. Will keep you posted on the proceedings.meanwhile lets welcome Sanuj to this board.
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Posted By: investor
Date Posted: 13/Sep/2006 at 12:50pm
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For some reason, the message i posted yesterday on this thread has gone missing - Basant can you look into this? And suraj has just confirmed what i had written on that message - about Sanuj! :-) I have interacted with him on MMB on quite a few ocassions, so good to see him join this forum as well. Kerala Ayurveda looks interesting...looking forward to more details. At that time, when Sanuj was discussing about it with Damani, i was fully invested, and so didnt look into this. Maybe now i will have a look into it. |
Posted By: omshivaya
Date Posted: 13/Sep/2006 at 1:12pm
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Thanks Suraj. Appreciate all the information. I believe they are going for 10 new institues in US. ------------- 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: sanujkr
Date Posted: 13/Sep/2006 at 2:01pm
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Dear everyone
Iam sanuj, I have been recommending Kerala Ayurveda to my friends and associates in the past one year. Now, after our (Me and Suraj) meeting with Mr.Vangal, iam much more convinced about their long term strategy, they wish to be pioneers of Ayurveda globally. I think if vangal can take the business on right track and scale up operations, KAPL will make a big Fortune for the investors. Just imagine, global Pharma industry size is over $650billion, but still western systems don’t have proven medicines for diseases like cancer and diabetics. India is world’s diabetic capital, even if traditional systems like Ayurveda can provide a solution for these killing diseases …………. KAPL wants to educate or make awareness to westerns to the need and advantage of using Ayurveda medicines and treatments into their daily life. Even if a small Pie of 650$billion global Pharma market, Turns to traditional systems, it could open a huge market for Ayurveda products. Global Pharma majors are also very keen on Ayurveda medicines and treatment systems, KAPL can jointly work together on Research & development of new products. I think the KAPL’s new team is just started to evaluate the situation, they will come up with their plans and strategies in coming months, but one thing is sure, they are aiming really BIG. CONVICTION and LONGTERM VISION WILL ALWAYS REWARDS YOU I think only few peoples had conviction on Pantaloons or Financial technologies of the world, when they were too small and under rated, but those who stayed in their conviction made their fortunes. Iam fully convinced in the long term future of the industry, and the guys who are running the business are renowned and respected globally……they have proven record in their marketing and management skills. KAPL also have exposure in healthcare software, Nursing consulting, training and recruiting. I think on a market cap of 60Cr, it’s compelling to make a big bet……… i asked to Ramesh Damani on KAPL, HE replied me that "Unfortunately until i meet him i am unable to express an opinion on KAPL. It certainly seems exciting, but its value as a business proposition needs to be seen. Can he scale up the business? " KAPL Sites www.katra.biz www.kaplayurveda.biz www.ayurvedagram.com www.ayurvedaonline.com www.katrahealthcare.com www.katrasoft.com www.katranurse.com Small brief on Katra group chief Ramesh Vangal Ramesh Vangal is the Founder and Chief Executive of Scandent Group, an 800 man global organization focused on Business Process Outsourcing, Enterprise Solutions and IT services. Prior to this he has set up AT INDIA LLC, co-managing a VC fund. He also served on the Board of Infosys between 1997 and October 2001 and was its first overseas Director. Mr. Vangal was the past Chairman of Seagram Asia Pacific (now Pernod Ricard)- a leader in the Asian spirits and wine business between 1997 and 2001. In addition to this, he had been the company's joint venture partner in India. Both businesses witnessed great turnarounds and explosive growth during his tenure. Prior to Seagram, Mr. Vangal was President, Asia Pacific for PepsiCo Foods and also a Member of PepsiCo's Worldwide Council. He led PepsiCo's entry into India, an initiative that became the basis of a Harvard Business School case study. In 1992, he was the first recipient of Pepsi-Cola International's High Performance Leadership Award. Mr. Vangal received an engineering degree from the Indian Institute of Technology. Mumbai in 1977. He completed his MBA from the London Business School in 1979 and became the first Asian to be awarded the school's "Alumni of the Year" honor in 1996. He started his career with Procter & Gamble in Geneva, Switzerland and subsequently completed several operations and marketing assignments in Europe, the Middle East, Central America, the Caribbean and West Africa. Mr. Vangal is a Charter Member of TiE Silicon Valley, and on the Advisory Board of London Business School. He is also the Chairman, Marketing & Brands Committee with Confederation of Indian Industry (CII) and its member on the National Council. warm regards sanuj kadavil |
Posted By: Equity Buff
Date Posted: 13/Sep/2006 at 8:16am
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Dear Sanuj,
KAPL looks very good. The scale of opportunity is also large and the company is backed by very good management. Do you have any numbers(rough cut estimates) for fy 07 and fy 08 ?
Rgds
Equity Buff
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Posted By: Equity Buff
Date Posted: 17/Sep/2006 at 11:18am
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Dear Suraj / Sanju,
Any information you can give on above post, EPS etc for FY 07 and FY 08 for Kerala Ayurveda.
Rgds.
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Posted By: Ajith
Date Posted: 18/Sep/2006 at 2:13pm
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I use the Ayurveda products of the best-known (Kerala)Kottakkal Ayurveda shala-BEST QUALITY.I have heard of other renowned Ayurvedic products from SD Pharma,Nagarjuna etc but all I have heard of Kerala Ayurveda (of interest to me)is not about their products but about Kochi-based shrewd investor and portfolio manager Porinju Velliyath picking up a stake in the company a few years back.Maybe I have to investigate...if the company is good their products must be good...but it beats me why I have not heard of it.....
While the presence of Vangal does inspire confidence more needs to known about gestation, periodmarketing costs,research expenditure,capital expenditure before any investment appraisal can be done.. ------------- Ajith |
Posted By: omshivaya
Date Posted: 23/Sep/2006 at 4:07am
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Whenever you get any details on this one, do post here Ajith. I am watching this one closely. I am still not clear how they plan to take on the pharma industry. Ayurveda is great but when selling products, the most formidable opponent would be the pharma companies' use of power and knowhow with political parties to try to stop the spread of ayurveda. It has to do more with politics and finance than good products.
If you see the truth, an ayurvedic medicene is 1000 times better than its counterpart allopathic medicene. So why is the 650 billion$ industry not touched by ayurveda fully?? It has to do more with power-plays than simple "good products".
If ayurveda gets a legal recognition, and some good human being with loads of cash decides to start pushing "ayurveda" to each and every home, then this is a great proposition. But another point to make here is that ayurvedic products would be very less expensive than pharma ones. The "Kerala Ayurveda" team has to set its goal straight and concentrate on selling ayurvedic products globally, on a mass scale, thinking primarily of profits and NOT "saving humanity" by selling "natural products" and doing good to mankind. That will indirectly happen anyway! ------------- 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: Ajith
Date Posted: 23/Sep/2006 at 11:40am
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Om Shiva,I agree entirely.Tke the case of cholestrol-reducing statins which can have fatal complications on some people while guggulutiktam from Kottakkal has no side effects though one has to ofcourse monitor cholestrol levels regularly..Even here brand equity counts.Himalaya Drugs if ever it is listed would make a great investment.
If I get any info on Kerala Ayurveda I would definitely post but as an investment we can rely only on managements abilty to make it a long-term sucess story as present financials and lack of information on gestation(as far as I know it)makes it difficult to project EPS.Inspite of my saying this Kerala Ayurveda maybe a multibagger because of the adressable opportunity. ------------- Ajith |
Posted By: s_praharaj
Date Posted: 23/Sep/2006 at 11:53am
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Dear Sanuj and Sanju,
Your article on Kerala Ayurveda is interesting. Though Ayurveda is very old, still it is in its infancy as far as reasearch is concerned. There are a lot of space in Health care segment for both Allopathic and Ayurveda to stay. As such Allopathic has gone so much into research and surgery that, no one can just ignore allopathy for any alternate medicine. But the fact remains that that ayurveda is rapidly gaining popularity and there are a lot of potency in this field. But the fact remains that Ayurveda has to prove itself through Research and result.
The promoter's track record is mind bongling. They have truely realised that an integrated approach is required for popularising it.That's why probably, they have started research, education and marketing also at the same time. I have not followed the company, nor aware about its financials.But your story is tempting me to go into the details. I will try to get whatever I get about the company and keep posted in this forum.
I thank both of you for initiating a discussion and sharing the valuable information about the company. Keep posting about other devolopments about the company from time to time.
Shashi Praharaj
Mumbai ------------- Shashi Praharaj |
Posted By: manojc
Date Posted: 28/Jun/2007 at 6:44pm
| Why this forum is silent for quite some time? Suraj and sanju could you please update the present status of Kerala ayurveda. why the stock is not moving up even with the presence of Ramesh Vangal? Is there any hope for positive breakout soon? |
Posted By: kulman
Date Posted: 28/Jun/2007 at 6:57pm
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I had read somewhere that Ayurvedic treatment takes longer time in healing as compared to Allopathy or Homeopathy.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: us121
Date Posted: 29/Jun/2007 at 12:21pm
Kulmanji liked yr sense of humour. Nice reply to previous post. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: tarle_kitty
Date Posted: 06/Oct/2007 at 2:48am
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The stock has spiked up on good volumes over the last few days - while I don't know if the price rise is sustainable, the company seems to be executing well
a. Appointed Dr. Narendra Bhatt, ex-CEO of Zandu Pharma as Director of Research & Business Development
b. Rolled up a couple of ayurveda academies into their current one in Seattle and revamped their offering
c. Purchased some land and expanded on their herb farming
Anybody from Kochi/Aluva care to visit the hospital and see what kind of occupancy they are having? Or better still, somebody from Bangalore can check on their Ayurvedagram facility to see whether things are moving favorably.
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Posted By: Kalyan
Date Posted: 20/Jul/2011 at 4:14pm
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Basantji can this company can be a investment grade for 3-5yrs perspective ? ------------- kalyan |