Stock Recommendations- Andhra Sugars & Ipca Laboratories

Andhra Sugars

It is a prominent sugar company in India.  They have reported a sales turnover of near Rs 300 Cr in the second quarter FY 2012. Its sales turn over in the second quarter FY 2011 was near Rs 300 Cr. About 30% increase can be seen in the sales turn over. Company reported a net profit of near Rs 48 Cr in the second quarter FY 2012. Its net profit in the second quarter FY 2011 was near Rs 29 Cr. About 65% increase can be seen in the net profit.

Market cap of the company is near Rs 350 Cr.  Book value is Rs 146.28. Price/book ratio is 0.89. P/E stands at 4. It is clearly below the industry P/E of 14. Company reported annual sales of near Rs 520 Cr in the FY 2011. Company is trading below its annual sales. The stock price created a 52 week high of Rs 132 on 27 January 2012. 52 week low by the stock is Rs 77.65. Company recently did an agreement with ISRO to supply liquid hydrogen. The stock price is now trading in the levels of Rs 130. It will be a clever buying opportunity for long term investors. Long term target is Rs 210/

Ipca Laboratories

It is a world class player in the pharma industry. Company has respectable presence in multiple areas like Asia, Africa, Europe, Australia etc. Company reported a sales turnover of near Rs 623 Cr in the second quarter FY 2012. Its sale turn over in the second quarter FY 2011 was near Rs 520 Cr. About 210% gain can be seen in the sales turn over. Company reported a net profit of near Rs 78 Cr in the second quarter FY 2012. Its net profit in the second quarter FY 2011 was near Rs 94 Cr.

Market cap of the company near Rs 3728 Cr. Book value is Rs 83.76. Price/Book ratio is 3.54. P/E stands at 14. It is above the industry P/E of 10. Company reported consolidated annual sales of near Rs 1900 Cr in the FY 2011. The stock price created a 52 week high of Rs 351 on 14 June 2011. 52 week low by the company id Rs 232. The stock price is trading in the levels Rs 293. It is a bright long term investment opportunity for conservative investors. Long term target is Rs 450/

Stocks Recommended by  San Joseph

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