Company & Business Profile
Alpa Laboratories (APL) manufactures a range of products such as ethical drugs, generic drugs, over the counter (OTC) drugs and also veterinary drugs in various dosage forms. The company is also into contract manufacturing of various drugs for a number of domestic and international companies. Currently, has an approval to manufacture 1366 formulations.
APL mainly exports countries like Iran, Iraq, Sudan, Madagascar, Kenya, Srilanka, Nigeria Costa Rica etc. Nigeria being the main area of export. Exports contributed around 11 % of the total revenue in FY 07.
The company is currently manufacturing pharmaceutical formulations in five different product lines comprising of liquid injections, dry power injections, tablets, capsules, & ointments. It proposes to use the issue proceeds to expand their existing capacity, widen the product range and venture into segments such as pro biotins, prebiotics & pre filled syringes. They are also planning to venture into growing markets such as the lifestyle disorder segments and gynecology segments.
Investment Positive
Established Client Relationship
The company has established client relationships in domestic and international markets from whom they get orders on a continual basis. Its major domestic clients include Mac Pharma, Trimurti Drugs & Pharmaceuticals Ltd, Bharat Medical Corp etc and major international clients include Synergy Healthcare Limited, Abeer Pharmaceuticals, Kaytee Star Limited and Regional Bargains limited.
Expansion/Diversification
The company manufactures products such as ethical drugs, generic drugs, OTC drugs and veterinary drugs in various dosage forms & is planning to venture into segments like prebiotics, probiotics and pre-filled syringes. Besides, it also intends to venture into lifestyle disorder a segment which is the high margin business. These expansions & Diversifications may positively drive its revenue growth.
The company plans to set up a drug making unit in Madhya Pradesh using the 646 million rupees it raised through its 9.5-million share initial public offer.
The new plant is expected to raise the company's total capacity to 6.4 million units per day from 2.5 million units.
Other favoring facts:
Alpa Laboratories having good Land Bank (35 Acres) in INDORE. Now all India Real Estate (Land Rates) was very high. Company having 35 Acres land in INDORE. Total value of this land was 35 * 5 Crores = 105 Crores. Company Equity only 21 Crores. And company running very good. Just Invest based on Company fixed assets and Company financials.
Pharma being one of the biggest importers of Drugs and Medicines in Nigeria, it expects the volume of the business to reach between USD 6 million to USD 8 million within a year.
Alpa Laboratories Ltd has appointed Vhermann Pharmaceutical Inc, Philippines as its agent for distribution of its products already registered in Philippines and to be registered in the future. Vhermann Pharma being a large importer of Drugs and Medicines in Philippines, it expects the volume of the business to reach between USD 4 million to USD 6 million per year.
The Company is looking to expand upon its existing sales network by joining hands with reputed parties all over the world.
Alpa Laboratories Ltd has informed BSE that the Company has entered into an agreement with Wockhardt Ltd to manufacture products for further exports by Wockhardt.The Company is actively expanding its existing associations by joining hands with reputed parties all over the world.
Alpa Labs is looking to expand upon its existing sales network by joining hands with reputed parties all over the world.
Valuations:
This is 10/- Face Value share trading at 24/-. This Company Shares came out in July 2007 with Rs. 65/-. After that Listing at 65/- its come down to 24/- for Market Crashed. N
Alpa labs at the current price 23/- is a great buy for 12-18 month periodow its trading at 24/-.
The stock is the best buy for 12-18 month time period will give superior returns.The share price hugely discounting the BV which is 34/- whereas the CMP is 24/-.
Company expected to post good numbers in the upcoming years due ramp up in sales by capex plans.
FY08E eps is 7.5 and FY09E eps is 20.
Then if we considering the bear market conditions assuming the 4PE then the stock is at 80/- and if we considering the average market conditions 9PE then the stock is at 180/- If we considering the bull market conditions 12PE then the stock is 240/- .
Just look at the current price 24/- It is a great buy for 12-18 month period.
You will get 300-1000% return.
Conclusion: This is a small cap company hence buy according to your portfolio value.
Happy investing
Be and make
kalyan
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