IOLCP - Synergy in operations made monopoly in product integration

(ukdube) #41

How about debt? How they are going to reduce/manage.Presently debt is more than co M-Cap?Scaring.

(Mehul Shah) #42

That’s why stock is available at this price. The future projection is encouraging and last 2 years growth is impressive. They have capacity expansion plan in near future, however not planning to increase the debt.
So far management has discussed increasing top and bottom line, but never discussed anything on reduction of debt.
I am anticipating some deduction in debt gradually once they start earning net profit in double digit. Re-rating may happen. Next few quarters will be interesting. I would consider this stock as low risk high reward case at this juncture.

Disclosure : Recently taken tracking position.

(sri krishna bhutra) #43

In continuation to my post on BASF hiving off its stake various API businesses and keeping the Ibuprofen business with self.

A recent report of ICICI securities on Strides Shasun demerger lays emphasis on the API demerger being value accretive.

Quoting some test from the same - “The API portfolio of Strides includes several high value products such as generic Sevelamer (Renvela) and is one of the top five companies for supplying Ibuprofen API in US.”

Link to report -