Hikal undertakes research & development, manufacturing and marketing of specialty chemicals and caters to the pharmaceutical and crop protection industries. It collaborates with innovator companies and offers solutions in contract research, custom synthesis and custom manufacturing. Its basket of offerings includes active ingredients, intermediate chemicals and R&D services to the leading MNCs.
Hikal has manufacturing facilities at Panoli (Gujarat), Taloja and Mahad (Maharashtra). These are supported by research centres and pilot plant facilities at Bangalore and Taloja.
The company has been strengthening its research and development backbone by earmarking substantial investments in Pune and by setting up manufacturing facilities adhering to international standards with US Food and Drug Administration approvals. It appears to be positioning itself as a custom research & manufacturing company, providing services right from gram scale to commercial scale, enabling it to garner better business and manage quick scalability.
It appears to be moving in the right direction as, in this calendar year, it has entered into a long-term contract manufacturing agreement with Bayer CropScience AG, Germany, for manufacture and supply of active ingredients for crop protection products, and with Pfizer, a leading pharma multinational, for manufacture and supply of active pharmaceutical ingredients. It recently signed an agreement with Alpharma Inc, a US-based global specialty pharmaceutical company, for manufacture and supply of active pharmaceutical ingredients for the veterinary sector.
On a consolidated basis, the restructuring exercise of Marsing & Co, the Denmark headquartered pharmaceutical marketing and distributing company, needs to be monitored. This has the potential to boost Hikal’s overseas prospects.
At the current price of Rs 375, the stock has corrected by 8 per cent in the last one month and is trading at a PE of 12 (trailing four quarters numbers) and appears to hold potential.
Investors may keep a watch on this one and consider adding it to their portfolios once market conditions appear to stabilise.
Hikal has manufacturing facilities at Panoli (Gujarat), Taloja and Mahad (Maharashtra). These are supported by research centres and pilot plant facilities at Bangalore and Taloja.
The company has been strengthening its research and development backbone by earmarking substantial investments in Pune and by setting up manufacturing facilities adhering to international standards with US Food and Drug Administration approvals. It appears to be positioning itself as a custom research & manufacturing company, providing services right from gram scale to commercial scale, enabling it to garner better business and manage quick scalability.
It appears to be moving in the right direction as, in this calendar year, it has entered into a long-term contract manufacturing agreement with Bayer CropScience AG, Germany, for manufacture and supply of active ingredients for crop protection products, and with Pfizer, a leading pharma multinational, for manufacture and supply of active pharmaceutical ingredients. It recently signed an agreement with Alpharma Inc, a US-based global specialty pharmaceutical company, for manufacture and supply of active pharmaceutical ingredients for the veterinary sector.
On a consolidated basis, the restructuring exercise of Marsing & Co, the Denmark headquartered pharmaceutical marketing and distributing company, needs to be monitored. This has the potential to boost Hikal’s overseas prospects.
At the current price of Rs 375, the stock has corrected by 8 per cent in the last one month and is trading at a PE of 12 (trailing four quarters numbers) and appears to hold potential.
Investors may keep a watch on this one and consider adding it to their portfolios once market conditions appear to stabilise.
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