The Hindu Business Line
Dishman Pharma: Buy Investors with two-year perspective can consider an investment in Dishman Pharmaceuticals and Chemicals, a leading contract research and manufacturing services (CRAMS) player catering exclusively to innovator companies. The company has high earnings visibility from long-term contracts for supply of pharmaceutical ingredients. Furthermore, inorganic growth through overseas acquisitions will add to Dishman’s revenues as it keeps looking for opportunities. Given its capabilities in manufacturing constituents of patented molecules, key intermediates and Vitamin D, Dishman is well-placed to capture a larger share in the innovator contracts space.
Dishman’s sales could easily clock a compounded annual growth rate of over 30 per cent over the next two-three years and maintain operating margins of 21 per cent. At the current price of Rs 275, the stock discounts its FY-09 earnings per share 14 times, which is cheap compared to the sector leader, Divi’s Laboratories. More
IVRCL Infrastructures: BUYInvestors with at least a two-year horizon can consider exposure to the stock of IVRCL Infrastructures & Projects. Accelerated growth in revenues on the back of faster execution of projects, strong order book and the expanding Government outlay towards water and irrigation projects augur well for the company’s earnings growth over the next few years. At the current market price, the stock trades at 19 times its expected standalone earnings for FY 2009 and 15 times its consolidated earnings for the same period. We expect the company’s subsidiaries in real estate (IVR Prime Urban) and water engineering solutions (Hindustan Dorr Oliver) to make a significant contribution in future.
IVRCL’s sales for the quarter-ended December grew 87 per cent over last year with a comfortable pace of project execution. This is superior to the growth numbers recorded by the company’s peers. Order book at Rs 10,230 crore also surged compared to the previous year. The average execution cycle time has so far been 2.5 years.
Water and irrigation projects account for 58 per cent of the above order book. While IVRCL has made considerable progress in the road and building segments, the irrigation and water segment continues to be the key revenue driver and propeller of profit margins. That the Jawaharlal Nehru Urban Renewal Mission has set aside 70 per cent of its outlay to this segment reflects its rising importance. IVRCL’s execution skills in this segment have been bolstered by its acquisition of Hindustan Dorr Oliver – a water engineering solutions provider. . More
Dishman Pharma: Buy Investors with two-year perspective can consider an investment in Dishman Pharmaceuticals and Chemicals, a leading contract research and manufacturing services (CRAMS) player catering exclusively to innovator companies. The company has high earnings visibility from long-term contracts for supply of pharmaceutical ingredients. Furthermore, inorganic growth through overseas acquisitions will add to Dishman’s revenues as it keeps looking for opportunities. Given its capabilities in manufacturing constituents of patented molecules, key intermediates and Vitamin D, Dishman is well-placed to capture a larger share in the innovator contracts space.
Dishman’s sales could easily clock a compounded annual growth rate of over 30 per cent over the next two-three years and maintain operating margins of 21 per cent. At the current price of Rs 275, the stock discounts its FY-09 earnings per share 14 times, which is cheap compared to the sector leader, Divi’s Laboratories. More
IVRCL Infrastructures: BUYInvestors with at least a two-year horizon can consider exposure to the stock of IVRCL Infrastructures & Projects. Accelerated growth in revenues on the back of faster execution of projects, strong order book and the expanding Government outlay towards water and irrigation projects augur well for the company’s earnings growth over the next few years. At the current market price, the stock trades at 19 times its expected standalone earnings for FY 2009 and 15 times its consolidated earnings for the same period. We expect the company’s subsidiaries in real estate (IVR Prime Urban) and water engineering solutions (Hindustan Dorr Oliver) to make a significant contribution in future.
IVRCL’s sales for the quarter-ended December grew 87 per cent over last year with a comfortable pace of project execution. This is superior to the growth numbers recorded by the company’s peers. Order book at Rs 10,230 crore also surged compared to the previous year. The average execution cycle time has so far been 2.5 years.
Water and irrigation projects account for 58 per cent of the above order book. While IVRCL has made considerable progress in the road and building segments, the irrigation and water segment continues to be the key revenue driver and propeller of profit margins. That the Jawaharlal Nehru Urban Renewal Mission has set aside 70 per cent of its outlay to this segment reflects its rising importance. IVRCL’s execution skills in this segment have been bolstered by its acquisition of Hindustan Dorr Oliver – a water engineering solutions provider. . More
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