Stock Recommendations For Your Portfolio

TORRENT PHARMACEUTICALS | BSE CODE:500420 | Volume:24150 | CMP :Rs.550

Led by chronic therapies, Torrent Pharmaceuticals is all set to benefit on the domestic markets going forward. What is acting as a value accretive proposition is the acquisition of Elder Pharmaceuticals domestic portfolio. Moreover, the company has nil pledged position of the promoters. Contribution of exports to total revenues has increased over the years to 69 per cent, led by higher growth across geographies. Elder Pharma has very strong distribution coverage in Tier 2 and 4 towns where Torrent has been relatively weak. The brands acquired have shown historical growth of 14-15 per cent annually with turnover of about `410 crore and EBITDA of around 35 per cent in FY13.
 This is also emerged as a positive factor for the company. The company has built a decent US pipeline of 68 ANDAs with 46 products already approved and another 22 pending approval. Management expects to launch 10 products over the next year.

COROMANDEL INTERNATIONAL | BSE CODE:506395 | Volume:11927 | CMP :Rs.217

Coromandel International, in the fertiliser space is likely to witness better investors’ interest going forward among its peers. Benign raw material prices, stable INR and recent positive steps taken by the government is likely to benefit most of the fertiliser companies, Coromandel is likely to benefit as the government  has kept NBS rates unchanged for FY15 barring K (18 per cent decline). The stable prices are likely to provide cushion and help the company post steady margins. The excess channel inventory in the system has reduced from around 5 mT to 1 mT, which is a positive indicator. The availability of Phos acid from TIFERT will lead to increase in manufacturing proportion from around 77 per cent in FY13 to around 90 per cent in this fiscal. Also, Sabero Organics’ profitability should grow, led by higher capacity utilisation. Robust growth of non-subsidy business will also be value accretive for the company.