The Hindu Business Line : Hikal inches up on growth prospects

THE Hikal Ltd stock closed marginally up (0.77 per cent) at Rs 454 after touching the day's high at Rs 462 on Tuesday. The counter's 52-week high was created at Rs 497 on May 19 last.

A section of pharmaceutical analysts seems to be enthusiastic about growth prospects of Hikal Ltd in view of integration of Marsing & Co, a Denmark headquartered pharmaceuticals marketing company having network in 100 countries in Europe, the US, Latin America, West Asia and Africa, as also beginning of exports of a few new generic products.

This Kalyani group outfit, which manufactures and markets products partnering with global pharmaceuticals and agro-chemicals MNCs, appears poised for an exponential growth in its topline and bottomline. A fund manager said that its contract research and manufacturing efforts are to get a fillip from a Rs 100 crore investment plan and establishment of a high profile research advisory panel.

It has recently signed a long-term agreement with Crompton Corporation of the US for manufacture and supply of crop protection products. In the pharma research segment, the company had tied up with transnationals such as Merck and Novartis.

According to an analyst with an institutional brokerage, over the last five years Hikal's gross profit margin has been showing a firm growth, and currently placed at around 20 per cent and is slated to grow further in the next two years.

Its pharma research facility has acquired USFDA and WHO approvals clearing access barriers in the developed markets. The company's research units undertake work of process development, optimisation, scaling up and provide pilot plants for chemicals research, while in the pharma segment the company provides intermediates for candidate drugs in phase 1, 2 and 3 clinical trials. It also supplies building blocks for discovery research.

As the promoters hold around 75 per cent and the public holding is placed at just 9.65 per cent and FII holding at 8.11 per cent, availability of floating stock is an issue with the counter, market persons point out.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
SKF drops delisting plans

Tata MF launches mid-cap fund

Bulls prevail

REI Agro moves up on new biz plans

Hikal inches up on growth prospects

JBF Industries gains on expansion plans

Outlook may turn positive for Tata Motors, Hero Honda

WestBridge stake in Dr Lal PathLabs

ITC, REL drive positive sentiment

Jindal Poly Films to tap market to raise Rs 300 cr