Initiating this thread with a brief compilation of some facts.
1). Company is suffering from acute working capital problems.
2). Huge equity dilution due to FCCB conversion.
3). Corporate Governance issues. The shares of promoters were pledged and as a result of invocation by lenders promoter stake is now 0. Hence the company is without any promoters as of today.
4). Huge drop in profitability due to all its issues.
The silver lining:
1). New management has taken over this year
2). Dr. Datson has recieved an order from Delhi based pharma Ochoa Laboratoris to produce oncology drugs to cater to Europeran markets worth Rs. 120.
3). There are three potential acquirers for Dr. Datson
a. Eubage which has given an enterprise valuation of Rs. 350 crores or Rs. 35 per share for Dr. Datson
b. Hong Kong based Leaders Group Asia
c. Unconfirmed reports of another big acquirer Advanced Oncotherapy PLC which is based in London UK.
4). They are in final stage of talks with a Nigerian company for exports.
5). Yemen based company Al Muugh has signed an agreement for exports to Yemen
The price had gone down from highs of Rs. 850 to Rs. 5.5 due to falling profitability, huge equity dilution, lenders selling of pledged shares, corporate misgovernance, and working capital squeeze.
However the steady flow of good news and expectations of an acquisition has set the stock on fire for the last one week with huge volumes and a series of upper circuits.
Can it be the next marksans pharma. If so it could be a minimum 10 bagger even from the current levels