Wockhardt – top pick in the Indian Pharmaceutical space


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Wockhardt represents a unique low risk high gain potential investment in the Indian Pharma space. It is quite amazing to notice that Wockhardt (CMP RS 865) which is one of the top 10 pharma companies by profits and having one of the highest Return on equity should be quoting at such abysmal valuations. In comparison to its peers it is quoting at nearly 40-50% discount making it a low risk investment.

Wockhardt is a low risk high return investment idea in the Indian Pharma space

Wockhardt Ltd. is one of the top picks in the Indian pharma space

Given the fact that its turnover is over Rs 5000 crore and has enviable margins of +30%, its only time that the market starts re-rating this stock. On the basis of our conservative estimates we would expect the stock to rally and cover the valuation gap with its peers implying a nearly 70-100% appreciation from current levels over the next 12-18 months.

Further we would not be surprised if Wockhardt were to sharply surprise to the upside on its performance beating our own estimates. For further reading please refer to our following Q4FY12 result update and our initiating coverage reports.

Disclaimer: The views expressed in this article are entirely my own and do not reflect the views of my employer. This report is neither an offer nor a solicitation to purchase or sell securities. The information and views expressed herein are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in or have positions in the securities mentioned in their articles. Neither http://winningtrades1.com or myself accepts any liability arising out of the above information/articles.

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Vinit Bolinjkar Head of Research, Ventura Securities Ltd

Tel: | Mobile: 0 9730836363

http://winningtrades1.com

http://in.linkedin.com/in/vinitbolinjkar

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Tata Motors: Global JLR volumes growth and bank rate cut extremely positive


Global JLR volume growth is primarily coming from Evoque

51% jump in JLR sales to lead to surprise re-rating of the Tata Motors Lts stock price.

Tata Motors Ltd. (CMP Rs 302) shares are expected to do well on the surprising 51% yoy volume growth for the month of March shown by its global JLR business. The contributing measures to this outstanding performance is the sharp spurt in Evoque sales and beter than expected performance of its Jaguar portfolio.

In addition the 50 bps repo rate cut undertaken by the Reserve Bank of India (RBI) was better than street expectations and signals the end of the rising interest rate scenario. So this should be significantly positive for the Tata Motors domestic business also.

Based on our Sum of the parts valuation method we raise Tata Motors Ltd. expected target price to Rs 338 (previous 292). Please find the Tata Motors update for the revised numbers.

Also attached is a detailed Initiating covergae report on Tata Motors for reference.

Technically Tata Motors Ltd is poised to go into a bull orbit above Rs 305

Disclaimer: The views expressed in this article are entirely my own and do not reflect the views of my employer. This report is neither an offer nor a solicitation to purchase or sell securities. The information and views expressed herein are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in or have positions in the securities mentioned in their articles. Neither https://winningtrades1.wordpress.com or myself accepts any liability arising out of the above information/articles.

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Vinit Bolinjkar Head of Research, Ventura Securities Ltd

Tel: | Mobile: 0 9730836363

http://winingtrades1.wordpress.com

http://in.linkedin.com/in/vinitbolinjkar

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