Equity Watch

ASHCO NIULAB INDUSTRIES LTD, KPO In Pharma sector is going cheap

Ashco , is into Contract Research in fields of Bioavailability, Bioequivalence and gives cost effective and timely research solutions to Pharma and Biotech companies world wide.Has got FDA, DGCA and ISO accredited labs. in Mumbai, Noida and Hyderabad.Supplies latest instruments to Pharma and Biotech companies,acting as representatives of the best  http://ashconiulab.com/Instrumentation.pdf from around the world..

Promoters have increased their stake from 9 % some 2 years back to 43% now..This shows the confidence of the promoters in the busineses of ASHCO..On the financial front,the top line has increased by 100% during FY09 compared to FY08, and is expected to increase further by about 40 % during FY10 to Rs. 85-90 crores..Its equity is Rs. 31.2 crores ( FV=1), and expected EPS for FY10 is 0.2 ,thus giving P/E of about 6..Other companies in the same vertical like Sun Pharma Advanced Research ( CMP of Rs. 100 for Re.1 paid up ) is still in the RED with top line less than 1/3rd of Ashco and Equity of Rs. 20 crores….

Investment in the shares of Ashco is recommended at CMP and hold advised for atleast  a few years..It may prove to be a multibaggar..

 

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision

 

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2 thoughts on “ASHCO NIULAB INDUSTRIES LTD, KPO In Pharma sector is going cheap

  1. Mahesh says:

    Dear Ashok Sir,

    Why the company was so rush to Split the Stock @ 10 ruppes. Are they confident of expanding their EPS. Sir how long does it take them share price to reach back to 10 rupees.

    I really liked and stressed this sentence “Bioequivalence and gives cost effective and timely research solutions to Pharma and Biotech companies world wide” which is an edge to buy the stock.

    Waiting for your reply sir :).

    Thank you.

    Like

  2. In SM for every seller there is a buyer, and both buyer and seller think that s(he) is smarter than the other.In ST all buyers are losers untill the sellerS ARE really very stupid.Buyer is taking a RISK while seller is either booking profit or loss….So best is to avoid buying for ST…Don’t buy immediately on news or sell on news. Based on Due Diligence , Work out the max.downside and max upside..UPSIDE IS ALWAYS INFINITE WHILE DOWNSIDE IS KNOWN or limited..Observe a STOP LOSS , but a deeper stop loss..keep track of the news but don’t follow the price on day to day basis..BE A LT INVESTOR SPECIALLY DURING A BULL RUN..DON’T BUY ALL QUANTITY IN ONE GO OR SELL IN ONE GO.
    IN CASE OF ASHCO, suggested investment period is min. 2 years( BULL RUN ASSUMED) and STOP LOSS Rs. 6 if you bought the share at Rs. 10..I HOLD FROM RS. 10 LEVEL

    Like

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