Hot Chips - Dr Reddy’s Laboratories & Gujarat State Petronet
Ali On Content / 23 May 2011
DR REDDY'S LABORATORIES BSE Code: 500124 Volume: 30000 CMP: Rs 1588
Riding high on three new drug launches in the US (including Allegra–D-24) and with 75 pending approvals of which 37 are Para IV listings, the company is well-positioned to witness better growth going forward. DRL incurred a capex of Rs 880 crore in FY11 and plans to spend a similar amount in FY12. It intends to invest in SEZs and biologics with an aim to achieve sales of 23 billion tablets by FY13 from the present levels of 16 billion tablets per year. The company is also looking out for acquisition opportunities in the range of USD 30 to USD 50 million. It has started generating sales from its deal with GSK in the emerging markets but the ramp-up in sales will happen when the products are launched in markets such as Brazil, Mexico and Turkey. But these long-term facts are expected to be discounted in the present fiscal itself. One can take positions in the stock for a medium to long-term period.
GUJARAT STATE PETRONET BSE Code: 532702 Volume: 494000 CMP: Rs 98.55
Gujarat State Petronet (GSPL) transports approximately 37 MMSCMD of gas in Gujarat. The volume has witnessed better growth during FY06-FY10 and has grown at a CAGR of 32 per cent. The supply is set to rise from 32.4 MMSCMD in FY10 to 48 MMSCMD in FY14 driven by a strong demand and steady supplies from RIL, Petronet LNG, Shell, Cairn and PMT who transmit through GSPL’s network. The commencement of three units of 350 MW each of GSPC’s power plant over the next three quarters of FY12 and the commissioning of gas-based power plants by Torrent Power and DMIC are expected to add approximately 18-20 MMSCMD to the demand of gas over the next 3-4 years. GSPL also plans to cover all the districts in Gujarat by the next three years with the addition of approximately 1,000 km of pipeline infrastructure to the existing pipeline network. It is advisable to invest in the stock from a medium to long-term perspective.
Riding high on three new drug launches in the US (including Allegra–D-24) and with 75 pending approvals of which 37 are Para IV listings, the company is well-positioned to witness better growth going forward. DRL incurred a capex of Rs 880 crore in FY11 and plans to spend a similar amount in FY12. It intends to invest in SEZs and biologics with an aim to achieve sales of 23 billion tablets by FY13 from the present levels of 16 billion tablets per year. The company is also looking out for acquisition opportunities in the range of USD 30 to USD 50 million. It has started generating sales from its deal with GSK in the emerging markets but the ramp-up in sales will happen when the products are launched in markets such as Brazil, Mexico and Turkey. But these long-term facts are expected to be discounted in the present fiscal itself. One can take positions in the stock for a medium to long-term period.
GUJARAT STATE PETRONET BSE Code: 532702 Volume: 494000 CMP: Rs 98.55
Gujarat State Petronet (GSPL) transports approximately 37 MMSCMD of gas in Gujarat. The volume has witnessed better growth during FY06-FY10 and has grown at a CAGR of 32 per cent. The supply is set to rise from 32.4 MMSCMD in FY10 to 48 MMSCMD in FY14 driven by a strong demand and steady supplies from RIL, Petronet LNG, Shell, Cairn and PMT who transmit through GSPL’s network. The commencement of three units of 350 MW each of GSPC’s power plant over the next three quarters of FY12 and the commissioning of gas-based power plants by Torrent Power and DMIC are expected to add approximately 18-20 MMSCMD to the demand of gas over the next 3-4 years. GSPL also plans to cover all the districts in Gujarat by the next three years with the addition of approximately 1,000 km of pipeline infrastructure to the existing pipeline network. It is advisable to invest in the stock from a medium to long-term perspective.
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