Laurus Labs Limited, Power bank in Pharma Sector

 Laurus Labs Limited has outperformed the stock market and pharma sector, Pharma Sector is  in flavour since the COVID-19 pandemic and pharma sector has outperformed all indices and in Pharma sector laurus Labs has outperformed the pharma sector by a big way.

Laurus labs limited share has given returns of 300% in last 3 months. Share is trading around Rs. 1260 per share which was  trading at Rs. 450 levels around three months ago. 

Business Model:-

•Mr. Satyanarayana Chava, Founder & CEO of the Laurus Labs Limited

•Laurus Labs is having headquarters in Hyderabad and it is an Indian pharmaceutical company. This company is involved in the research and development of active pharmaceutical ingredients (API) for anti-retrovirals, hepatitis C drugs, oncology, cardiovascular, anti-diabetics, anti-asthma, and gastroenterology. 

This Pharma company is the world's largest third party API supplier for anti-retrovirals.

•During Covid-19 Pandemic In March 2020, Laurus Labs received USFDA approval to market hydroxychloroquine sulfate tablets, which earlier are used in treatment by USA  for COVID-19 treatment. 

The company announced that it would supply hydroxychloroquine to its US partner Rising Pharma for clinical trials of preventive treatment of COVID-19.

Financial results:-

From Financial you can see that how its profitability is getting improved quarter on quarter in 1 year profitability has been increase from Rs. 15 crores to Rs. 171 crores i.e. Jump of more than 10 times in profitability. 

Also you can see that sales has been increased from Rs. 550 crores to Rs. 974 crores.

Shareholding:-

From Shareholding you can see that Promoters are holding very good percentage of Shareholding and Pledged share has been reduced from 45.22 % to 31.56%. Further FII are very much bullish in this as they have raised stake in company from 11.29% to 16.06% from last quarter although DII has reduced the stake in company from 41.53% to 32.39%.

Comparative with Lupin and Aurobindo Pharma:-

From above you can see that Laurus Labs has outperformed both Lupin and Aurobindo Pharma.

For more details visit link as below:-

GMM Pfaudler Limited Share Analysis

GMM Pfaudler Limited:- 

GMM Pfaudler is Gujarat Based Company and Initial name of the company was Gujarat Machinery Manufacturers. It get listed on BSE as GMM in year 1962. In year 1987 Pfaudler, Inc. a USA based company acquired stake of 40% in the company and later Pfaudler Inc,increased the stake in company from 40% to 51% in year 1999. Now this company is wholly owned by Pfaudler, Inc. thereafter changed the name of the company from GMM to GMM Pfaudler limited.

 

Businesses of the company:-

·         It is leading supplier of engineered equipment and system for critical applications in the global chemical and pharmaceutical markets. 

·         Company has acquired Mavag, AG, Switzerland in year 2008 which is specialized in highly engineered equipment for critical filtration,  Drying and Mixing applications to the phama and Biotech industries.

·         In 2015, Deutsche Beteligungs AG(DBAG) a leading German Private equity company acquired Pfaudler Inc, USA.

 

Company is supplying following:-

·         Mixing Systems

·         Filtration'

·         Drying equipment

·         Engineered System

·         Tailor Made process equipment

 

Clients of company:-

Following are the major clients of the company:-

·         Dr Reddy

·         Divis Labs

·         Natco Pharma

·         Sai Life Sciences

·         Biocon and syngene

·         Hikal limited

 

Infrastructure of the company:-

GMM Pfaudler has plant situated in Karamsad, Gujarat which is about 450 Kms of Mumbai, Their plant is spread over 20 acres. They have very easy accessibility to 2 major airports naming Vadodara and Ahmedabad. They have fabrication facility spread over 38000 sqmeters which is dedicated for cabon steel and alloy steel fabrication.

They have current manpower of 350 employees and they have regional sales and service offices in Delhi, Mumbai, Vadodara, Ahmedabad, Hyderabad, Visakhapatnam and Chennai.

 

Promoters Holding:-

·         Individuals/Hindu undivided Family - 8.90%

·         Pfaudler Inc- 50.44%

·         Millars Machinery Company Pvt Ltd.- 11.12%

·         Uttarak Enterprises Pvt. Ltd.-2.81%

·         A J Patel Charitable Trust- 1.73%

Institutional Holding and Public Holding:-

·         Mutual Funds - 1.95% out of which

·         L&T Mutual Fund Trustee Limited-L&T Emerging Businesses Fund-1.10%

·         Foreign Portfolio Investors- 0.87%

·         Financial Institutions / Banks-0.13%

·         Public Holding- 22.02%

 

Look at the chart of GMM Pfaudler:-

From chart you can see that it already outperforming the share market by a big way and year 2020 it has got doubled already.

 

Just look at the financial results of the company during COVID-19 period it has clocked profit of Rs, 16.35 crores and company is continuously clocking profit.

 

 

YES Bank After FPO

Some Interesting facts about Yes Bank:-

 

In year, 1999 following started the NBFC (which is presently known as Yes bank) in partnership with a Netherlands bank naming as Rabobank:-

·         Mr. Ashok Kapur ,ex. country head of ABN Amro Bank

·         Mr. Harkrit Singh , ex. country head of Deutsche Bank

·         Mr. Rana Kapoor, ex. head of corporate finance at ANZ Grindlays Bank 

 

However, bank was formed in Year 2003 and same year Mr. Harkrit Singh quit and remaining two started the bank.

 

·         Ashok Kapur wife is Mrs. Madhu Kapur and because of her wife, Madhu sister Bindu get married to Rana Kapoor and both become relatives as well.

·         In Year 2008 during 26/11 during terror attack at Trident Hotel Mr. Ashok Kapur died and whole family, get into grief and Mrs. Madhu Kapur Nominated her daughter for Board seat but same was rejected by saying that as per RBI guidelines she doesn't fulfil the requirements for becoming a board member.

·         Then all of us know what happens thereafter Mrs. Madhu Kapoor filed case against Mr. Rana Kapoor and during 2018, crises of IL&FS govt. has took over IL&FS and in similar way DHFL and YES bank to safeguard the depositors and not allowing any NBFC or bank into complete shutdown.

 

RBI has taken control over Yes bank and after takeover SBI is major stakeholder in the company:-

 

Holding are as below:-

 

1.     Institutional Holding as on March’2020- 71.03%

·         Breakup is as below:-

·         Mutual Funds Holdings- 0.56%

·         FII Holdings- 1.86%

·         SBI Holding- 48.21%

·         ICICI Bank Holding- 7.97%

·         Axis Bank Holding- 4.78%

·         Bandhan Bank Holding- 2.39%

·         The Federal Bank Holding- 1.92%

·         IDFC First Bank Holding- 1.67%

·         LIC Of India Along With Its Various Scheme-  1.64%

 

2.     Public(Non-Institutional Holding) On March’2020

·         Total Holding- 27.55%

·         Individual share capital in excess of Rs.2 Lacs- 0.98%

·         Individual share capital up to Rs.2 Lacs-11.79%

·         Housing Development Finance Corporation Limited- 7.97%

·         Kotak Mahindra Bank Ltd-3.61%

·         Clearing Members-1.31%

·         Bodies Corporate-0.79%

·         Non-Resident Indian (NRI)-0.66%

·         HUF- 0.24%

·         Employees- 0.18%

·         Trusts-0.02%

Since the Yes Bank takeover by RBI people and corporates has withdrawn lot of money of bank and with FPO (follow-on public offer) it will recover from the huge bad debt and generate funds from the share sale to enhance the capital base.

a)       FPO was having size of Rs. 15000 crores and was Opened from 15^th July 2020 to 17^th July 2020

b)      FPO Price band was Rs. 12-13 per share.

c)       FPO Subscribed for 95% of total value.

d)      FPO get bids for 11.88 billion shares

 

I.             Qualified Institutional buyers portion subscribed 1.4 times

II.             Retail Investors section subscribed 43%.

III.            High net-worth Investors portion subscribed 63%.

IV.            HDFC Standard Life, BNP Arbitrage fund, HDFC Mutual fund, Norges fund, IFFCO Tokio, PNB Treasury and various large institutional investors subscribed for FPO.

V.             Yes bank has raised nearly Rs. 4100 crores from Anchor investors

VI.            Private sector lender YES Bank’s has been able to raise nearly ₹4,100 crore from anchor investors, with more than half of the allocated shares taken by Bay Tree India Holdings.

VII.             According to the filing, Bay Tree India Holdings has picked up 187.5 crore-equity shares amounting to 54.9 per cent of the anchor investor portion. In all, 14 investors have been allocated shares.

VIII.             Other investors include HDFC Life Insurance Company, which has picked 9.77 per cent of the anchor investor portion, Singapore-based fund management company Amansa Capital (9.1 per cent), Elara India Opportunities Fund (9.08 per cent), UK-based fund management firm Jupiter India Fund (3.05 per cent), and Jupiter South Asia Investment Company (0.61 per cent).

IX.            Bajaj Allianz Life Insurance has been allocated 3.66 per cent of the anchor investor portion and Hinduja Leyland Finance Company has received 4.15 per cent of the anchor investor portion.

Investors should not sell the Shares considering strong management of SBI and other banks, further FPO has met the expectations, and funds raised will be sufficient for next 2 years.

Since now parentage are strong of the company Investors should hold the Share for atleast 2 years for getting good returns.

You cannot get private bank share at such a cheap price.

According to company CEO Prashant Kumar raised funds will Common equity Tier-I Capital will go from 6.3% to 13%, which will take care for 2 years requirements.

Further few recoveries from Bad debt will improve the books and fundamentals of the bank.

Hold on as much as years possible.

 

Bid/Offer Opens On	Jul 15, 2020
Bid/Offer Closes On	Jul 17, 2020
Finalisation of Basis of Allotment	Jul 22, 2020
Initiation of Refunds	Jul 23, 2020
Credit of Shares to Demat Acct	Jul 24, 2020
IPO Shares Listing Date	Jul 27, 2020

 

Indiabulls housing finance share analysis

Indiabulls housing finance was once the traders favourite share considering that it has given handsome returns in the past and also give healthy dividend.

What has changed for Indiabulls housing finance??

In recent past due to fall of IL&FS all housing finance has gone into disaster and they are still facing the challenge before being getting out of woods. Thereafter there are multiple rumors due to issues rated to corporate governance and COVID-19 due to which stock has fallen from highs of Rs. 1500/- per share to only Rs. 80 odd levels, now this stock has recovered some losses by getting investment from Morgan Stanley.

What next for stock

Company is paying it's NCD at time and posted Q4 results on a good note and further in 2 days they have got investments likes of SBI and Oaktree and other investors with total investment of 4200 crores.

Out of 4200 Crores 2200 Crores it has obtained from Oaktree and Rs. 2000 crores from 7 Public sector banks through NCD's out of which SBI has subscribed for  Rs. 250 Crores, Indian Bank for Rs. 325 crores, Bank of Baroda Rs. 730 crores , United bank of India- Rs. 200 Crores, other investments are from PNB and Central bank of India.

So company is getting funding as required for meeting future requirements and this will be good for company for its near term future.

Now just look at chart of Indiabulls Housing finance :-

Just look at the chart you will see that this stock has outperformed the market until year 2018 where housing finance sector was booming and after IL&FS whole housing finance sector has gone into disaster even companies like DHFL are facing insolvency proceedings. 

But unlike DHFL this stock has strength and company is good hands and even if you see its financial results you will find out that employee cost has been keep on reducing which is as high as Rs. 156 crores in March 2019 quarter results to Rs. 110 crores in March 2020 quarter results. 

Also company has paid Rs. 40.00 per share as dividend in year 2018-19 and Rs. 31.00 per share in FY 2019-20 which indicates company is in good hands and always wants to share profit the shareholders.