The Hindu Business Line : Pantaloon Retail: Fuelled by high growth prospects

STOCK of Pantaloon Retail has again started witnessing purchases by institutional investors after the company announced its fourth quarter results early this week.

Dealers said the interest in the counter is on expectation of high growth to continue in the current fiscal. The company has July-June financial year. In the current fiscal, Pantaloon is expected to increase its retail space from 0.8 million to two million square feet.

For this expansion, it plans to raise funds through internal accruals and debt. The buzz is that the revenues and profit of the company will grow 100 per cent in the current fiscal. For the year ended June 2004, net sales were Rs 658 crore and net profit of Rs 19.77 crore.

On these expectations, there is accumulation of the stock. Recently. the shareholders also increased the FIIs' limit to 40 per cent and this is expected to bring additional investment from them in the company. On Wednesday, the stock gained 2.48 per cent at Rs 417 on the BSE with volume of 57,552 shares; on the NSE it closed at Rs 414.55, up 1.54 per cent, with volume of 74,912 shares.

Statins biz brings interest in Themis Medicare

PHARMA company Themis Medicare has been witnessing continuous rise in its stock prices.

Dealers said there has been active interest from several market players who have interest in mid-cap pharma companies. The interest in the stock is on back of huge growth potential of statins business for the company. Recently, one of the company's subsidiaries was merged with it, which is expected to bring in growth both in topline and bottomline.

Dealers said over the next two months, the company plans to begin commercial production of Pravastatin, which would start contributing to the revenues from the fourth quarter onwards. There is also talk of Themis being able to get the regulatory approvals from the European authorities for the manufacture and marketing of Lovastatin in the non-regulated markets. The fast growth for the company is expected from the next fiscal when it starts launching new products every quarter.

Recently, it also received permission from the Office of the Drugs Controller-General of India for Nimesulide Injection 75mg/ml, a NDDS product in the Analgesic/Antipyretic segment. For this, several global and Indian pharma majors have also approached the company for long-term co-marketing tie-ups. With re-rating for the entire pharma sector happening, dealers said this company is in this list.

On Wednesday, the stock price of the company gained 2.63 per cent at Rs 188.95 with volume of 18,278 shares.

Virendra Verma

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