SUVEN LIFE SCIENCE Equity Report

Disclaimer: Suven Life science Analysis and recommendation is purely for knowledge purpose and not to consider as any financial advice. Data are collected from various sources and analysed.For testing accuracy paper trading can be done.

Market Cap: 2400     Crore 52W High: 227    52W Low:149

About the Company:

Suven Life Sciences was promoted by Mrs. and Mr. Venkat Jasti in 1989, as a Private Limited Company. Later it was converted into a Public Limited Company in January 1995. Suven Life Science is a biopharmaceutical company focused on discovering, developing and commercializing novel pharmaceutical products, which are first in class or best in class therapies through the use of GPCR targets. The Company has six internally–discovered therapeutic drug candidates currently, in pre–clinical stage of development targeting conditions such as ADHD, dementia, depression, Huntington's disease. Parkinson's disease and obesity are in addition to developmental candidate SUVN–502 for Alzheimer's disease and Schizophrenia.

The company’s main thrust is in Contract Research and Manufacturing Services (C–R–A–M–S). Suven's ‘C–R–A–M–S’ is in existence since 1991 serving as many as 22 global Life Science and Fine Chemical Companies by developing and supplying cost effective Pharmaceutical and Agrochemical  Intermediates for New Chemical Entities  (NCE's) meeting world standards of Quality, Speed and Respect for Environment.

Drug Discovery & Development Support Services (DDDSS) aims to provide Contract Drug Discovery & Development services in Medicinal chemistry.

Source: NDTV

Shareholding Pattern

Performance Analysis

The company had a good first quarter accompanied by two bad quarters. The Sales were considerably low and last quarter is expected to perform better to keep up the sales. Good model of management and expert support for the company is advantage and the major sources of revenue have not got dried up. The Promoter Jasti has been continuously buying shares and it is good news for the company. EBITDA sound good but increased expenditure and other finance cost are eating up major share of the profit. The P/E ratio of the company is 36.00 which very close to industry ratio. Beta of stock is 0.90.

YOY the company has been consistent and management has good control over the operations held. The company is expected to post mixed results in the coming quarter but fundamental view is strong and stock is expected to move up. The figures as per the previous annual reports are giving good numbers and expectation for the investors.

Providing Quality service on timely basis is the major advantage of Suven. The CRAMS model is delivering good operations and the services are up to the quality. The Company is having more than 100 active projects and the clients are also pretty happy with the quality of the performance delivered. The R&D Department is outsourced in order to concentrate more on core competencies. In other way the outsourcing has created more expenditure too.

SUVN 502 is in the phase of approval from USFDA and it will be a boost fro the company if approved. Along with that three other are awaiting trials and results. Decline in Long Term borrowings and increase in assets is a good sing for the company. So the key factors are supporting the stock and a better Q4 performance is expected.

Technical Analysis

From technical front increased delivery trading during past trading days are giving positive sign for the stock. Immediate resistance is seen at 195 levels and support is seen at 175 levels. The RSI of the stock is neutral. So some fluctuations and a test of 170 levels can be expected. Even though, the strong support at 160 levels is hard to break.

House View

Suven Life Sciences is expected to break the 195 level soon and reach upto 220 levels in coming quarter. As I said S1-175 and S2-160 are strong support zones and better results can make sure stock won’t go further beyond that level. Considering the operations and financials, Suven is fundamentally a good stock and expected to reach above 200.

CAPLIN LABS Equity Report

Disclaimer: Caplin Labs Analysis and recommendation is purely for knowledge purpose and not to consider as any financial advice. Data are collected from various sources and analysed.For testing accuracy paper trading can be done.

Company Information:

Caplin Point Laboratories Ltd. manufactures a wide range of Ointments, Creams and other External applications. The company also has a facility for liquid injectables, ophthalmic drugs and lyophilized bio-tech products. Started in the year 1990, Caplin Point Laboratories Ltd. is based in Chennai. It is one of the fastest growing pharmaceutical company in India. The company  is aiming to enter new markets and have already achieved 2000 product licenses across the globe and are awaiting US FDA approval. Caplin Point is able to generate adequate revenue and cash flow to remain debt-free with benchmark receivables, and also continue to invest in state of the art manufacturing facilities from internal accruals. One of the main reasons for the success can be attributed to the wide range of products offered across diverse geographies.

Overview:

Market Cap:  2926 crore

ISIN: INE475E01026

52WK HIGH (RS.) :460

52WK LOW (RS.) 184

EPS (RS.) :6.06

Regd Office: Chennai, Tamil nadu

MD: Dr. Sridhar Ganeshan.

                                                         

Shareholding Pattern:

Performance Analysis

The Performance of the company has been exceptional through past quarters. The Income from major operations like antibiotics, anti- inflammatory analgesics has been constantly improving. Consistency and the model of operations undertaken by the company is good and the overall business is increasing its value. The Enterprise value has increased many folds from its inception and the constant growth is making this stock more attractive. The Expectations from the next quarter is very high and net sales are expected to cross 95' mark. Profit is also expected to increase. Last quarter there was an abnormal increase in Employee cost and this time it is expected to remain little lower. 
Overall the March quarter will be good for the stock.

 The YOY analysis is also pointing to a great year for the stock. Management has good vision and latest operations and the achievements from foreign markets is also good for the stock. The company has increased its presence over globally and are doing pretty good comparing to other pharmaceutical giants.
The P/E ratio of company is high from the industry ratio but the Caplin has delivered good performance and it does not make the stock overvalued. Apart from that the stock is having good fundamentals and are waiting for results.

Revenues from antibiotics is expected to increase. The key sources of revenue like Latin American countries are still strong point. Since the company is positioned itself as create value through self funding, and it is debt free makes it more attractive. the Promoter's stake has increased and the valuations are positive for the stock.
The stock is currently trading at 380 range and are expected to reach 450 to 500 in long term. I see 420 as a reasonable target in short term. The US FDA approval can boost the company and can cause increase in ROE.


Technical Analysis:

The stock is technically strong and a strong support is seen at 375 levels. Immediate resistance is 420 and breaking those levels can make this stock reach 52w High. Investors will be keen to see the results of this quarter. The Overall sentiment to stock is positive. The RSI, MACD and other major technical indicators are showing positive signs for stock. 

HOUSE VIEW:
The results are expected to be positive and one of major driving forces of the stock in this quarter. key Economic reforms and US FDA Approval are expected to be positive for the company. Current global as well as domestic business is going good for the company.
So We can expect better returns from this stock in near future. Caplin Is expected to touch 420 and 500, by 2017 end.

SNOWMAN LOGISTICS EQUITY REPORT

Disclaimer: Snowman Logistics Analysis and recommendation is purely for knowledge purpose and not to consider as any financial advice. Data are collected from various sources and analysed.For testing accuracy paper trading can be done.

About the Company:
Snowman Logistics Limited, founded in 1993, is an integrated pan-India temperature-controlled logistics services provider. Gateway Distriparks Limited, our promoter and largest shareholder, creates a bank of shared knowledge and valuable experience for us to build our operations. Snowman’s investor profile includes Mitsubishi Corporation, Mitsubishi Logistics Corporation, International Finance Corporation and Norwest Venture Partners.Snowman is one of the largest temperature controlled logistics services providers in the country, with an ability to service customers on a pan-India basis. provide value added services such as kitting, labelling, sorting, stuffing and destuffing of containers, packing and bulk breaking. Further, they sort, grade, pack and wash select fruits and vegetables.

The Snowman Edge:
During the IPO itself snowman had catched eyes of many due to its technology backed operation process and the services they provide. Regarding the growth of the industry it was growing at a good 20% per annum and snowman had enough opportunities to cash in. The performance of the stock also witnessed the same in market. The Market price of Snowman went above 100. The presence of Snowman in Temperature Controlled Logistics (TCL) is gaining its importance and are expected to grow in current market scenario.

Analysis:

The Performance of Snowman was pretty bad compared to other financial years. But the stock has corrected and is trading around its fair value. It is obvious that people does not expect much from this stock in coming result and are expected a fresh beginning in coming time. The rising expenses is a problem but income from operations are steady and growing at good rate.

Technical Analysis

The stock is trading below moving averages and trend is slightly sluggish. The consolidation in market and relatively less volatility in economy will keep the stock in current levels. Any positive news to industry like GST or a better than expected quarterly results can uphold the stock. The RSI is at 38 and the stock has potential to revive its current losses and gain more confidence. The Support levels are seen at 56 and 49. Holding or averaging this stock will be good. In medium term the stock will surely cross 70. 

Key Financials:
Market Cap- 1003.36 Crore
ROE%- 4.81

Shareholding Pattern:
Promoter:40.25
FII- 0.95
DII- 0.32

Others: 58.48

House View:
People who looks for fresh buy opportunities should wait. The stock could see support levels of 56. But the expectation of upcoming quarters are positive. Key Economic reforms and GST is expected to boost up the stock. A better than expected Q4 results is also good since the stock is corrected so much. 70 is the target for medium term.

TV 18 Broadcast Equity Report

Disclaimer: TV18 Broadcast's Analysis and recommendation is purely for knowledge purpose and not to consider as any financial advice. Data are collected from various sources and analysed.For testing accuracy paper trading can be done

CMP AS ON 05.05.2017

About the Company:

TV18 successfully completed the acquisition of ETV in this financial year and now houses a bouquet of 10 regional news channels. TV18 Broadcast Ltd is one of India’s popular television broadcasting networks. It includes one of India’s leading news networks comprising channels such as CNBC-TV18, CNBC Awaaz, CNBC-TV18 Prime HD, CNN-News18, IBN7 and IBN-Lokmat (a Marathi regional news channel in partnership with the Lokmat group) .TV18 and Viacom18 have also formed a strategic joint venture called IndiaCast, a multi-platform content asset Monetization’ entity mandated to drive domestic and international channels distribution, placement services and content syndication for the bouquet of channels from TV18, Viacom18 and other broadcasters.

Source: Network 18 Website

What's new for TV18 Broadcast?

1. Both Quarterly and yearly increase in revenue but increased expense made income statement look bit soft.
2. Reduced Investments in financial assets and used money to invest in assets and finance expenses.
3. Revenue earned is Positive
4. They introduced 10 new channels. 5 HD feeds of existing channels which is three regional and Vh1 and Comedy Central.TV 18 also deepened and widened presence in regional through Colors Super which has got launched and have introduced MTV Beats which is a 24x7 channel both in HD and SD.
5. The latest mergers looks promising.
6. Recovery shown in 4th quarter compared to 3rd quarter.
7. Better doing channels like CNBC and News18
8. Estd Rishtey Cineplex
9. Expecting reduced expenses.

Shareholding pattern

Performance analysis

The Performance analysis base year is took as 2016. TV 18 has given lowest return while comparing the Nifty Media Index and giants like SUN Network and Zee Entertainment who are the major players in the sector, While analysing the performance the company is yet to show its true potential and by considering the latest announcements from board of TV 18 good return is expected from this stock. The Promoter stake is constant.

Key Financials

Market Cap -6848 Crore

EPS- 0.59

P/E- 67.71

P/B-1.84

Technical Analysis

The Technical analysis of TV18 is showing a immediate support at 38 levels and second support is at 35 levels. The stock is having resistance at 43 levels and if breaks it can climb up to 50.  The Stock RSI is Positive and looks oversold. From Technical front bullish outlook is yet to come. Still downward is limited.

House View

The Positive trend in market and media industry is good for the stock. The business is expected to increase and financials will also pick up from next quarter.Increase in revenue and EPS are expected. Costs are expected to get reduced. 

Support levels are 38 and 35. The stock is undervalued and expected to touch 43-45 in medium term and 50 by end of 2017