As per NSE bulk data on 6th November 2015, Our Master Portfolio Member Porinju Veliyath has scooped out a mid cap pharma company named Alpa Labs. According to NSE data, daughter of Porinju Veliyath, Ms. Shilpa Porinju Veliyath scooped out 110000 shares of Alpa Labs @Rs. 31.30.
It is obvious that Porinju Veliyath would have already bagged enough quantity of stocks for his PMS clients before moving ahead with this bulk deal to immediate gains. Now lets look at Alpa Labs a little more detailed.
Alpha Laboratories is a leading Contract Research Organization (CRO) in India with its own in-house laboratory facilities for undertaking Bioequivalence / Bioavailability Studies, Clinical Trial Studies, Animal Toxicity Study, Dossier and DMF preparation, Medical Writing, Stability Studies, Analytical Method Development and Validation under one roof. The group has a sound financial footing and has well equipped laboratories at Navi Mumbai. The laboratory is manned by competent personnel drawn from various core areas of services. Company has more than 60 products in market as of now.
Alpha Laboratories came into secondary market in 2007 through IPO and the price band for the issue was between Rs 62 and Rs 68. The interesting fact is that the stock has never trade above that price band during its existence of nearly 8 years in market. The financial performance of the company is also not encouraging at first look.
In-fact, Investment Advisor SP Tulsian warned retailers in 2007 as below, which proved to be 100% right.
"The proposed issue would increase equity base of the company to Rs.21.56 crore in which promoters stake would be close to 50%. The new project is likely to go on stream by June 2008 and hence effect of expansion would get partly reflected in FY 09. This would project share of the company to be quite expensive on listing. EBITDA margin of 10.4% for FY 07 is nothing great. Hence, share may not be able to give good returns in the short terms by way of listing gain. Better stocks in the secondary market are available in the sector."
Now what made Porinju Veliyath to bag more that 1 percent of this small mid cap pharma company is still unknown. Lets wait and see if he is having a final smile on this risky bet!!
It is obvious that Porinju Veliyath would have already bagged enough quantity of stocks for his PMS clients before moving ahead with this bulk deal to immediate gains. Now lets look at Alpa Labs a little more detailed.
Alpha Laboratories is a leading Contract Research Organization (CRO) in India with its own in-house laboratory facilities for undertaking Bioequivalence / Bioavailability Studies, Clinical Trial Studies, Animal Toxicity Study, Dossier and DMF preparation, Medical Writing, Stability Studies, Analytical Method Development and Validation under one roof. The group has a sound financial footing and has well equipped laboratories at Navi Mumbai. The laboratory is manned by competent personnel drawn from various core areas of services. Company has more than 60 products in market as of now.
In-fact, Investment Advisor SP Tulsian warned retailers in 2007 as below, which proved to be 100% right.
"The proposed issue would increase equity base of the company to Rs.21.56 crore in which promoters stake would be close to 50%. The new project is likely to go on stream by June 2008 and hence effect of expansion would get partly reflected in FY 09. This would project share of the company to be quite expensive on listing. EBITDA margin of 10.4% for FY 07 is nothing great. Hence, share may not be able to give good returns in the short terms by way of listing gain. Better stocks in the secondary market are available in the sector."
Now what made Porinju Veliyath to bag more that 1 percent of this small mid cap pharma company is still unknown. Lets wait and see if he is having a final smile on this risky bet!!
It is a micro cap
ReplyDeleteIf you see last 3 quarters results, you will understand what made him buy this share @32..almost 100% up from it's 52 week low of 15..Current market price is 51 and it is expected to rise upto 75-80 before next results..
ReplyDeleteThe Price has more than double in past 2 months. Trading at its 52WK High
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteHe is after scraps more or less a scrap picker not stock picker
ReplyDelete