Bliss GVS Pharma

Stock Opportunities
61

Hello every one…i was going through the AR 2016-17 of bliss pharma and saw the following note in their notes to non current investment at page no. 79…

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Can anyone throw a light onto the implication of such an investment…This further boosts my doubts about validity of investing in non listed subsidiary companies which are not performing too…
shall we count such investments for the purpose of DCF and other valuation models…

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Bliss is proposing to sell it’s clinic operations in Africa which forms
between 40 - 50% of the sales and profits of the company… Can some
boarders who have studied bliss in detail explain why the stock is still
holding…when the profits and sales are going to be about half in the not
so distant future…

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After reading the 2016-17 AR, i have following observations -

  1. The bliss pharma ltd has made a net profit of 62 cr while the kenya subsidiary which has been sold has earned arnd 61 cr too.

  2. After its sell. the profits will be almost halved.

  3. The new acquisition is a small company which cant produce the profits of 60 cr.

This means that the earnings will be halved and so the share price…
this is my thought process as a novice…i request any senior member to throw some light…

regards

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Anyone having latest on bilssgvs. Charts are giving some good signals , volume for month Feb2019 is record breaking high indicating very keen interest of mkt in this scrip.

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65

Promoter holding fell from 60.16% in June18 to 41.53% in June 19.
Narsimha Shibroor Kamath reduced his stake from 40.74% to 33.31%.
Any rationale for such drastic reduction in PH?

66

@ayushmit or anyone, are you still tracking this?

Can we discuss the key risks here?

  1. The decrease in promoter shareholding in a business which has shown great return on the invested capital.
  2. They are operating in a niche segment but I wonder what are possibilities of someone in Africa coming up with their own drugs, can’t undermine the pharma companies there.

They have a huge spike in their margins for Dec 2019 quarter and the earning after tax will be almost similar to the last year on the account of reduced revenues.

Looking to expand the discussion on this.

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I stopped tracking this co few years back, sorry, not much idea currently

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  1. Over the last one year, management has bought >2% stake from the open market.
  2. Company got USFDA approval for first time
  3. Company has bought land to start domestic business

What is cooking here? Anyone know the management? Is this company a fraud?

I called up the Company Sec. She said management doesnt meet - if you want to invest then its your choice.

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