The Hindu Business Line : Nectar Life betting on volume, margins

It appears that value buyers ignored the recent general profit-booking trend and kept on holding Nectar Lifesciences, a BSE Small-Cap Index stock. According to market sources, its profitability has gone up substantially this fiscal because of its thrust on exports and value addition. The stock, though finished marginally in the red, down 0.46 per cent, at Rs 237.05 and has shed just 0.80 per cent in the past one week on the BSE, it still remained a gainer by over 44 per ce nt in the last one month. Against the fortnightly average volume of 2.18 lakh shares a day, Monday’s traded quantity on the exchange was just 39,934 shares. In response to the Business Line query over the market perception that s ales volume and margin for its two key products have been rising in 2007-08 month-on-month, Mr Sanjiv Goyal, CMD confirmed the trend. Nectar entered production and export of menthol in the second half of 2006-07 and recorded sales/exports of around Rs 120 crore. However, in April-June 2007 quarter alone, despite appreciation in rupee against dollar, it managed to log menthol turnover worth over Rs 100 crore. Exports of sterlinecephalsporin, produced through profitable ADCA route, may also go up roughly 15 percentage points. Mr Goyal said the company could cover the negative impact of a fire (on its sales and profits) at its Punjab bulk drug plant through outsourcing and the forex losses through forward contracts.

Jayanta Mallick

More Stories on : Stock Markets | Stocks | Ear to the ground | Pharmaceuticals

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