Ind Swift Ltd - Rs.61.00

Ind-Swift Ltd (ISL) started up its activity in development, manufacturing and marketing of prescription and non-prescription pharmaceuticals in 1984. Since then, it has emerged as a research driven, forward looking pharmaceutical company with world-class expertise in finished dosage form medicines. ISL is one of the fastest growing Pharma companies and ranked among the most promising pharmaceutical groups in India by both IMS and ORG-Marg. It’s into manufacturing of broad range of solid, liquid, semi-liquid forms, capsules, tablets, dry/liquid injectables (small & large volume), eye/ear drops, oral solutions, creams/gels etc. ISL is gradually becoming a leading player in select therapeutic categories like Gynaecology, Cardiology, Diabetology and Paediatrics. ISL also manufactures a wide range of products under anti-allergic, anti-fungal, anti ulcer, antibiotic, antispamodic, mineral & vitamins, antihypertensive, speciality herbals etc.

The company’s manufacturing procedures are laid down as per US FDA/WHO GMP guidelines & complies with ISO certification. It has an unique R&D centre having facilities for bio-equivalence studies, clinical trials for Ist, IInd and IIIrd phase and toxicological studies. The R&D team is presently working on a number of products at various stages of development in the high growth areas of cardiology, diabetology, neurology, anti-asthmatic, anti-cancer and anti-alcoholic segments, which are planned for launch in the current year. Recently, the company has successfully launched a wonder molecule for the first time in Asia named `Nitazoxanide' under the brand name `Netazox' for the treatment of diarrhoea. The company has been granted two process patents by the Indian Patent Office. ISL has launched a new marketing division under the name 'Resurgence' for Anesthesiology, Oncology and Surgery Segment. Last year, the company received its first US patent for the NDDS of a macrolide antibiotic `Clarie-SR' a formulation completely developed in-house. The company has also filed another patent for NDDS formulations based on an anti-histamine drug. ISL is also in line to offer a very synergistic opportunity for partnership with MNCs for contract research & manufacturing world-class products that involve substantially reduced R&D costs as compared to their current expenditure. ISL’s future business model envisages achieving leadership in the niche value-added specialized domestic pharmaceuticals market and building a strong de-risked international business around its core strengths by leveraging its manufacturing capability of NCEs, CRO for Global markets, APIs and Formulations with Distinctive sales & marketing infrastructure, and R&D through alliances and In-Licenses and Acquisitions.

Fundamentally as well as financially, the company is very strong and holds around 45 lakh shares of Ind Swift Labs. On its very small equity of Rs.7.30 cr., the company has around Rs.90 cr. in reserves and Rs.90 cr. in investments as per current market valuations. For FY05, its Net Sales increased by 16% to Rs.247 cr. and NP jumped 120% to Rs.28 cr. (including extraordinary income) reporting an EPS of Rs.8 on face value of Rs.2 per share. Going forward, we expect the company’s margins to improve and it can post a NP of Rs.33 cr. on total sales of Rs.300 cr. This works out to an EPS of Rs.9 on its current equity. Investors are advised to buy at current levels with a price target of Rs.100 in 15~18 months.