Span Diagnostics Ltd - Rs.48.00

Incorporated in 1976, Span Diagnostics Ltd (SDL) is a pioneer and trend-setter of high quality products used by pathology & clinical laboratories in the diagnostics industry. It is the oldest and largest manufacturer of diagnostic reagents in India with a rich experience of more than three decades. SDL has segmented its product portfolio, into three divisions. Its Span PDP i.e. Popular Diagnostic Products Division, focuses on clinical and pathological laboratories, blood banks and hospitals for infectious disease serology, rheumatology and hematology. Its Span ID i.e. Instrument Division concentrates on clinical pathology laboratories, hospitals, physicians, and research institutes for laboratory automation, system for biochemistry, hematology, ELISA & allergy testing. And its Cogent i.e. Clinical Chemistry Division caters to the clinical laboratories & hospitals in the areas of biochemistry, stains, indicators and readymade analytical reagents.

SDL has one of the largest state-of-the-art ISO-9001:2000, WHO cGMP accredited advanced manufacturing facilities with ISO 13485 & CE accredited products in Asia. Apart from manufacturing in-house, it has also entered into exclusive tie-ups with reputed companies worldwide for marketing, distributing and servicing their products in India. It has alliances with Nihon Kohden-Japan, Corgenix-UK, Biotecnica Instruments-Italy, General Biometrics-USA, Allmedicus-Korea, Hitachi Chemical Diagnostics-USA to name a few. Besides, the company also takes contract manufacturing of a wide range of quality reagents and kits in bulk for OEM i.e. private labelled. Notably, SDL has a well-equipped research laboratory with talented pathologists, biochemists, microbiologists and molecular biologists who that can undertake production of various purified molecules, e.g. antigens, tumour markers, tissue proteins etc. in commercial quantities employing the protocols supplied by customers. Similarly, it has a well-maintained animal facility with mice, guinea pigs, rabbits, sheep and goats for the contract production of polyclonal and monoclonal antibodies in bulk quantity.Apart from having a strong marketing team of technically qualified sales and service staff, SDL has an efficient and extensive distribution network comprising of 4 regional offices and more than 250 dealers across the Indian subcontinent. Its products are also exported to around 45 countries worldwide.

Fundamentally, the company is doing well and has reported stunning numbers for the Sept.’06 quarter. While sales have increased by 25% to Rs.14.70 cr., the PAT zoomed up 170% to Rs.1.03 cr. registering an EPS of Rs.3.40 for the quarter. However, for the full year FY07 it is expected to clock a turnover of Rs.55 cr. and net profit of Rs.2.25 cr. This works to an EPS of Rs.7 on its small equity of Rs.3 cr. Investors are advised to accumulate at declines as the scrip has the potential to give 50% returns in 15 months.