Cmp – 153
Market Cap – 235 cr
52week High/Low – 176/68
Accmulation zone – 130 To 153.
Target – 450
TF – 24 to 36 months.
Kilitch Drugs was founded in 1978 by Entrepreneur- Late Mr.pratap Mehta.Having very Rich experience of more than 25 years.
Kilitch Drugs (India) Ltd. (KDIL) is a fast-growing pharmaceutical company committed to improving the lives of millions of people through its patient and market-centric innovation approach.
Driven by over three decades of industry experience, Deep market
knowledge and a strong Manufacturing set-up, company is emerging as a leading exporter of branded pharmaceutical products to Africa.
They also undertake contract Manufacturing for some of the largest pharmaceutical companies based in India.
They are getting bigger, stronger and broader with penetration into African markets, enhancement of product portfolio across the lifecycle of patient recovery, strong product branding and recent investments in an upcoming and one-of-a-kind manufacturing plant in
the second-most populous country of Africa – Ethiopia.
Companies Advantage in Africa
Sandoz,zydus Cadila,Lupin,Glenmark pharma, Abbott ,Merck ,Elder pharma,Lupin,Ajanta pharma,Wanbury Ltd,Flamingo pharma Ltd, Unichem Lab and Many more.
Companies Products –
1 .>Parenterals & Nasal products – Vials,Dry powder ,injectables and Nasal Drops which are effective in gastroenterology, anti-inflammatory, anti-malarias, diagnostic, uterine stimulants, veterinary and many many areas.
2.>Oral – Tablets,Capsules,Dry Syrups, oral powders which are effective in Antibiotics, cardovascular ,anti diabetes and many more areas.
3.>Medical Device – A sterile Tissue adhesive to close surgical incision,punctures & laceration without leaving scar.
4.>Cosmetics & Herbal Products –
Accompany has good range of Cosmetics products also like Oil,Lotion,Liquid To Cream & paste in skin care and personal care.They also have Herbal products which are very useful in sore throat, prostate problems as well as can be used as supplement for diabetes, obesity, libido and many more.
Very Big Opportunity
Betting Big & Financial
👉Company is setting up huge expansion plan in Ethiopia in Africa.Plant is expected to be operational by April 2019.Big jump is visible in earning.
👉In 2012 company had sold its unit Akron for 200cr post it had non compete agreement for 5 years.Its non compete agreement has expired and it has started production from Mumbai plant.
👉Company has zero Debt and it’s Debt free. It has close to 90cr of cash & equivalent.
👉In FY19 we expect company to post
Topline of 140 to 150cr & it can easily post PAT around 15cr.
👉FY20 would be game changer for company.once new plant starts in Africa it can easily Double its revenue & PAT can also grow by almost 40% To 50%.
👉From FY20 Company can have revenue as High as 450-500cr and currently company has market cap of only 235cr out of which it has 90cr cash & equivalents.so you getting company at just market cap of 140cr. currently
👉Promotors have also increased its stake from 65% To 70%.Which is very positive in current market scenerio.
Disc – All Views expressed are personal.above article is for study & educational purpose only consult your financial advisor before taking any position.