Recommendation From Pharmaceuticals & Construction Sector

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.

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MARKSANS PHARMA
CMP - Rs45.65
BSE CODE 524404
Volume 1875650
Face Value Rs1

The company manufactures and sells generic pharmaceutical formulations and is also engaged in providing R&D and CRM services to pharma companies across globe. The company generated major revenue from therapeutics like OTC (29%), prescription drugs (21%) and pain management (17.5%) in FY17. Further, the company generates nearly 83% of its revenue from the US and the UK. At the end of 2017, the company’s Goa unit, which exports solid dosages and soft gelatine capsules, received UK MHRA clearance. With this, the company is mulling capacity expansion of the unit and starting a new facility in Navi Mumbai. It is expected to file ANDAs and launch 6-12 products in the second half of FY18. The company expects further penetration in Europe and Australia. Going forward, pharma sector is expected to improve after the softening of the GST impact.

MAN INFRA CONSTRUCTION
CMP - Rs69.15
BSE CODE 533169
Volume 157301
Face Value Rs2 

The civil construction company in which ace investor Rakesh Jhunjhunwala holds a stake, is engaged in port infrastructure as well as residential construction. The company generated its FY17 revenue from EPC (92%) and realty (8%). Its financial performance in FY17 was quite noteworthy, with its revenue and PAT growing by 99.5% and 201%, respectively. Moreover, its TTM revenue and PAT are already 25% and 16.4%, respectively, up to the September quarter results. The company’s EPC order book stands at Rs669 crore as on September 2017 quarter, out of which 70% pertains to port infrastructure and the balance pertains to residential projects. The orders are expected to be executed within 12-18 months. The company has also bid for orders amounting to Rs2000 crore. As per the mandate, the company has already registered all its projects under RERA. Considering the company’s Ghatkopar project in Mumbai, 30% of phase-I has been opened for sale again and phase-II work is expected to start in January 2018. The company’s D/E stands at 0.5, while the interest coverage is 4.3, which lends it financial stability.