Bulk drugs manufacturers mainly cater to the needs of pharma companies which generate prescriptions from doctors. they themselves dont generate doctor’s prescription.
Companies like sun, torrent, unichem, fdc, ajanta etc get most of their business from doctor’s prescription.
Companies like aurobindo, orchid, smruthi organics, etc are mainly bulk drug suppliers. The percentage of revenues from doctors prescription is very low in these companies.
hope this helps.
Hiteshbhai,
I remember you tracking AGRO TECH FOODS earlier. Do you still track and any view on it?
The company has planned for 2 plants in India and 1 in Bangladesh.
The buy back has been cancelled now seeing the stock run up.
Do you see a buy in the stock seeing the products being launched and success of ACT II?
rishi
I havent been tracking agrotech foods since a long time.
Not much idea about that.
Thanks Hiteshji for the clarification
Hiteshji,
Have you ever had a chance to look at a company called AK Capital. Just read a research report on it and sounds interesting.
Incase you have any views, please share
Thanks
Supratik
I think they were into debt management for companies. There was some scandal/rumour of scandal and stock price had taken a big hit. dont know much about it.
You can start a thread about it if its interesting. Or find a thread it if exists and continue with it.
Dear Hitesh,
Can you share your updated portfolio after Q4.
Any recent entries or exits, Navneet & monsanto added recently ?
I belive, lot of valupeikcr’s including me are curious about your portfolio transitions as it gives a lot of valuable insights.
regards,
Shanid V H
Hello Hitesh,
Are you buying Unichem incrementally at lower levels. Today it has gone down below 158
It occupies a high portfolio allocation currently. Hence I am not buying bcos it would skew the balance.
regarding the query of portfolio updates,
currently I own,
unichem 30% ---- I have articulated my views quite often.
canfin 8 % ------ This also is well discussed.
gruh 12 % ------ I felt below 200 it offered a good entry point.
hawkins, 15% ------ Here I had a re think and re entered around 2100-2200.
navneet 10% -------Vinod ms has put up a good write up on its merits.
monsanto 10%
MY views put put up on the thread.
kaveri 6%
This one is tricky to predict in terms of its fy 14 numbers.
and small quantity of narmada gelatin.
recent additions include navneet and monsanto whereas i had booked profits in kaveri at above 1600. added some again recently.
unichem remains a drag on the portfolio but I am quite okay with the correction in the stock as I view it as a 2 year investment.
**
**
Thanks Hiteshji, Would like to learn your decision to re-enter Hawkins
~Supratik
Hitesh Bhai, what’s your view on Ajanta… any comfortable range for re-entry or its off your radar now?
Tremendous allocation in Unichem!
I am very surprised that a dividend yield of 2.5%, sale of SEZ on trackand falling rupee have not protected the downside. The stock just keeps slipping. I started buying at 175 and slowly added at lower levels. I plan to add more but getting jittery now.
I was lucky to make some quick money earlier in Can fin (Bought at 140, sold at 161 the day CNBC guy said it will be a multibagger) and Kaveri (bought at 1400 and sold at 1600) and then converted it to Unichem.
[ Comment too short ]
regarding hawkins, if u see historical figures for annual sales on screener.in, then we could expect the company to grow at atleast 15%… This is my premise.
Now with the company expected to have a trouble free (fingers crossed) full year of operations, I expect some amount of operating leverage to come into play. i.e fixed costs remaining same and higher sales leads to improved npm.
So if sales grows by 15% in fy 14, (fy 13 was 420 crores) we get sales of around 485 crores. On that if we expect an npm of 10.5-11% we get net profit figure of around 50-55 crores and apply a PE of 30 then that gives a target market cap of 1500-1650 crores. Current market cap is around 1135 crores. That gives a good 40-50% upside.
the whole theory rests on
1). company having a trouble free year
2). demand sustaining to provide atleast 15% sales growth
3). Net profit margin expanding to 10.5-11 %
a new ceo has been put in place and hopefully he will have better focus on profitability than brahma vasudeva.
Hitesh Ji,
Apart from this equity allocation, What %age is cash… ready to enter markets in case of meaningful corrections?
Also where do you see Unichem after 2 yrs?
Hi hitesh,
What level of cash do you hold? And how do you plan to deploy it ? If that’s not too personal a question 
Regards
I feel correction is already meaningful. Maybe some more to go. Currently not too much cash. In case of stock specific preferences might swith between stocks.
Unichem – never thought about price targets as such but could be around 300 or so.
Regards
Not much cash. I can deploy cash out of other assets but wouldnt prefer to do so.
Currently around 6-7% cash. Have been deploying cash into unichem, navneet, monsanto and kaveri recently.
Thanks Hitesh.
Hitesh Sir,
Are there interesting opportunities in the current scenario, which we can look into with two years perspective.
Ravindra
