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!!! W E L C O M E !!!
In INDIA, people generally relate to stock market as “EASY MONEY” or “SATTA BAZAAR”. For them it’s purely a GAME or matter of sheer LUCK and nothing more than that. But seldom do they know, by following certain PRINCIPLES and taking INFORMED decision, this same platform has the power to take them from rags to riches. No doubt, it has a certain amount of RISK attached to it. But every business or investment has it. What more, the Finance Ministry has already made the long term capital gain as TAX FREE whereas the short term capital gain is taxed at merely 10%. On the economic front, India’s GDP is growing and is expected to grow at scorching pace of more than 8%. Unfortunately, even today our market is being ruled and dominated by FIRANGI’s money. But I can see, the day is not far when our general PUBLIC will change its perception and start putting MOST of their savings in equities as an ** Investment **.
Remember, "K N O W L E D G E" and "P A T I E N C E" are the key to success.
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SAARTHI

Sensex (LIVE- Intraday)

Sensex (LIVE- Intraday)

Thursday, April 7, 2005

Medi Caps - Rs.48.00

Medi Caps Ltd (MCL) was incorporated on 6th August 1983 as a Private Limited Company and was converted into public limited on 3rd March 1986. Since inception, it has focused on the production of finest gelatin capsules in various sizes, which are widely used in the packaging of drugs, vitamins, antibiotics and cosmetics. Today, is the second largest manufacturer of hard gelatin capsules with an annual capacity of 3.5 billion capsules with clients like Wockhardt, Glaxo, SmithKline Beecham, Nicholas Piramal, Pfizer, Cadila, IPCA Labs, Lupin, Cipla, etc. Moreover, it has been exclusively manufacturing Halal Gel Capsules for the South East Asian Market.

MCL is an ISO-9001-2002 certified company with an ultra modern manufacturing facility and in-house R&D division employing over 300 people. Its high-tech automatic capsule manufacturing machines, sophisticated quality control laboratory and well-documented systems as required under a good manufacturing practices have helped it to achieve near zero defect capsules. Last year, MCL started manufacturing of sticky free capsules and liquid fill capsules, which have a great, demand and bring in good orders together with better margins. It is planning to launch new variants in the coming year and increase its export turnover. It is been done basically by better utilisation of manufacturing capacity, continuous modernisation & automation and substantial increase in realisation. Apart from being a well known name in pharma packaging.

MCL has a huge potential market since India is looked upon as a global hub for formulations and hard gelatin manufacturing business. Financially, it is strong as it is debt-free with huge reserves of Rs.18 cr. and liquid investments of Rs.11 cr. on a very small equity base of Rs.3.40 cr. Though it may report flat numbers, the future is indeed promising. It will end FY05 quite flat with turnover of Rs.23 cr. and NP of Rs.3.75 cr. For FY06, it can report Sales of Rs.28 cr. and NP of Rs.5 cr. This works out to an EPS of Rs.12 and Rs.16 respectively. With an expected dividend of 20%, the yield works out to more than 4% at CMP. Its share price can easily appreciate by 50% in one year and has the potential to double in 18-24 months.

Posted by RAJAT AGRAWAL / MUMBAI at Thursday, April 07, 2005

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