The Hindu Business Line : Li-Taka Pharma jumps on export orders

THE stock price of Li-Taka Pharmaceuticals has almost doubled in the last one week on the back of bagging various export orders. Stock is also on the rise due to orders for supplying drugs for projects funded by World Bank in India.

According to brokers, the company has export order of over Rs 35 crore and in addition, it sells drugs in local markets on its own.

The stock has increased from Rs 11.51 on September 16 to today's closing price of Rs 22.21 on the BSE, a gain of 93 per cent. Trading volumes have also jumped sharply from a few thousand shares to over three lakh shares.

Mr R.C. Bora, Managing Director, Li-Taka Pharmaceuticals, said the company has an order of around Rs 30 crore to supply drugs for tuberculosis. He said this drug has to be supplied under the World Bank-funded projects in India under which the drugs are distributed free to the patients. Mr Bora said this order has to be completed by December 2004.

Other than this order, the company has received an order from the US-based company Pfiyer for supplying Protinex, an energy drink. Mr Bora said the shipment of the energy drink has started a couple of months back and this has to be supplied on a regular basis.

According to him, the monthly export order for it is around Rs 2 crore. In addition, the company has orders of around Rs 10 crore from various countries to be supplied in this fiscal. The company expects around Rs 25 crore from local sales in this fiscal.

For the financial year ended March 2004, the company reported a net profit of Rs 57 lakh on sales of Rs 60.9 crore. Its EPS was Re 0.66 on equity of 8.68 crore shares.

However, brokers caution investors entering the stock at these levels. They said investors should wait for correction in the stock. "Sharp rise in stock price is followed by sharp fall and this is possible in Li-Taka Pharma stock also," said a dealer with a domestic broking firm.

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