Entries in the ‘Recommendations’ Category:

Buy Venus Remedies – good pick from Pharma

Buy Venus Remedies – Pharma Sector – Small cap pick

About Venus Remedies:

Currently the stock is trading at Rs.265 per share. I expect the price to be in the range of Rs.350-400 in 1 year.

Chandigarh-based Venus Remedies is a major producer of oncological and cephalosporine injectable products. The company has de-risked its business model by having presence in the high growth therapeutic segments such as anti-infective, oncology, cardiology and neurology.

The company follows the strategy of forging marketing tie-ups with companies in India and abroad for specialty products. The company is also looking at contract manufacturing opportunities. It has filed many international patents for sophisticated formulations of anti-biotics and oncological therapeutics.

Last week, Venus launched world’s first once-a-day painkiller injectable in India. The company hopes to capture 10% market share in the early years of its launch and is already in talks with global pharma companies for out-licensing the product.

In March 2010, the company got Indian patent for one of its product Sulbactomax and has also filed patent for this product in another 50 countries including the US, Europe, Australia, Japan and Latin American countries.

Growth Strategy :

Registrations approved in 19 semi-regulated markets in 2008-09 are expected to drive the company’s prospects and profitability. Its launch of innovative products in India and other international geographies (through marketing alliances) will strengthen revenues.

Contract manufacturing opportunities with leading global brands are expected to yield attractive results. In-licensing initiatives are likely to reinforce our performance.

Financials :

The company’s net sales have grown at a compound annual growth rate (CAGR) of 55% over the past five years to Rs 310 crore in FY10. The net profits have grown at a CAGR of 62% to Rs 45 crore in FY10. The company has undergone a capex of Rs 200 crore over the past five years.

It has logged a strong performance for the first quarter ended March 2010. With 27% increase in net sales and 31% increase in net profit, the company has logged an improved performance sequentially.

Company Valuations:

The company has outperformed the Sensex and is currently valued at little over than its annual turnover. The stock is trading at a price-to-earnings multiple of 5.

These relatively lower valuations indicate the scope for the company’s stock to appreciate further as company continues to deliver growth. Investors looking at bottom-fishing in the small-cap space can consider this scrip.

Source: Economictimes.com

Reliance Industries : Reliance Industries has good support at Rs 1,180

Reliance Industries has good support at Rs 1,180, says Ashwani Gujral, technical analyst, on CNBC-TV18. If this holds, then the stock may slowly move up to Rs 1,510-1,550, he adds. The stock is at Rs 1,349.25 on the BSE

Jet Airways : Jet Airways may have another Rs 5-10 upside lef

Jet Airways may have another Rs 5-10 upside left, says Prakash Gaba, technical analyst, on CNBC Awaaz. Book profits here, he suggests. The stock is at Rs 186.80 on the BSE

Ambuja Cements has support at Rs 65

Ambuja Cements has support at Rs 65 and wil face resistance at Rs 90, says Ashwani Gujral, technical analyst, on CNBC-TV18. The stock is currently trading at Rs 72.25, up 1.7% on the BSE

Petronet LNG : Petronet LNG has support at Rs 33

Petronet LNG has support at Rs 33 and can head up to Rs 45, says Ashwani Gujral, technical analyst, on CNBC-TV18. The stock is currently trading at Rs 39.20, up 9.8% on the BS

Tata Steel will gace short-medium term resistance at Rs 250

Tata Steel will gace short-medium term resistance at Rs 250, says Hitendra Vasudeo, technical analyst, on CNBC Awaaz. If this is taken off, the stock can move up to Rs 275-300 too, he adds. On the downside, one can look at buying the stock at Rs 175-150 or lower, he suggests. For long positions, keep a stoploss of Rs 205, he adds. It is currently trading at Rs 232.25, up 1.5% on the BS

Mahindra & Mahindra has strong support at Rs 30

Mahindra & Mahindra has strong support at Rs 300, says Prakash Gaba, technical analyst, on CNBC Awaaz. If this is broken on the downside, then exit the stock, he suggests. It is at Rs 327.95, up 2.1% on the BSE

Indian Hotels can head up to Rs 60

Indian Hotels can head up to Rs 60 now, says Ashwani Gujral, technical analyst, on CNBC-TV18. The stock is currently trading at Rs 47.85, up 6.1% on the BSE

DLF has support at Rs 250

 DLF has support at Rs 250 now, says Ashwani Gujral, technical analyst, on CNBC-TV18. It can now head up to Rs 354 and then 441, he adds. The stock is currently trading at Rs 319.80, up over 4% on the BSE

Voltas Target Analysis

 Voltas can go up to Rs 65 now, says Ashwani Gujral, technical analyst, on CNBC-TV18. The stock is currently trading at Rs 59.40, up 1.3% on the BSE

Buy ITC

Buy ITC CMP Rs.172.80 for short term delivery Target of Rs.185.

Short Indian Oil

Short Indian Oil between Rs.365 and Rs.385 for a Target of Rs.340 in 2 weeks Stop Loss = Rs.386 on closing basis.

Mkts to open down remain weak: HDFC Sec

According to HDFC Securities market report, markets will open down remain weak following negative global cues.

Nifty may correct upto 45024452: Angel

According to Angel Broking Market Outlook report, if Nifty trades below 4576 for the first halfanhour of trade then it may correct upto 4502–4452.

Nifty has support at 4464: Anagram

According to Anagram Research report, the next support for the Nifty on the lower side is 4464.