Query: I have bought 300 shares of Surya Pharma at Rs.110,please tell me how long should I hold and what is the future of company? Ajaykumar
Thebullishtrends: Surya Pharma share price closed yesterday at Rs.136. Manufacturing, customized development, marketing and distribution of various bulk drugs (active pharmaceutical ingredients), especially Penicillin derivatives, Surya Pharma has been doing it for more than 15 years.
Thebullishtrends: Surya Pharma share price closed yesterday at Rs.136. Manufacturing, customized development, marketing and distribution of various bulk drugs (active pharmaceutical ingredients), especially Penicillin derivatives, Surya Pharma has been doing it for more than 15 years.
Surya pharma initiated construction of a new plant in the tax haven state of Jammu. The Jammu plant will be constructed in line with the US Food and Drug Administration (US FDA) standards primarily to manufacture new APIs and sterile cephalosporins. Once the commissioning of this facility, Surya will enter the highmargin injectable business. We expect that facility to contribute an incremental Rs100 crore to Surya's revenues in FY2009E.
Surya pharma has recently entered into the manufacturing menthol and its derivatives. We expect that this will help the company to generate more than 50 Cr turnover to the company in 2nd half of this financial year. Surya Pharma's higher-end products will also have a positive impact on the company's profitability margins, resulting in a robust 55.3% CAGR in profits over the next two years.
The second quarter performance is also good it posted Rs.111.79 cr net profit on Rs.118 cr turonver and operating profit margins of the company is improving Q on Q basis. The share price rose from Rs.81 to Rs.136 in 3 months period. Current EPS(TTM) Rs.25.65 discounting the present price of Rs.136 just by 5.31 which is undervalued when it compared to its peers Granules India having P/E of 19. We expect the share price may rise in coming months.
Surya pharma has recently entered into the manufacturing menthol and its derivatives. We expect that this will help the company to generate more than 50 Cr turnover to the company in 2nd half of this financial year. Surya Pharma's higher-end products will also have a positive impact on the company's profitability margins, resulting in a robust 55.3% CAGR in profits over the next two years.
The second quarter performance is also good it posted Rs.111.79 cr net profit on Rs.118 cr turonver and operating profit margins of the company is improving Q on Q basis. The share price rose from Rs.81 to Rs.136 in 3 months period. Current EPS(TTM) Rs.25.65 discounting the present price of Rs.136 just by 5.31 which is undervalued when it compared to its peers Granules India having P/E of 19. We expect the share price may rise in coming months.
