Kerbside

The recommendations provided in this column are taken from various market sources such as brokers, analysts, dealers and investment strategists, etc. These recommendations may not be backed by strong fundamentals. Therefore we advise readers to use their own discretion before investing in these recommendation

ACQUISITION
Aurobindo Pharma
BSE Code: 524804
CMP: Rs.801

In what could be one of the biggest deals in the Indian pharma sector by a mid-sized Indian company, Aurobindo Pharma has acquired the dermatology and oral solids business of Sandoz in the US for US$900 mn. Sandoz's US portfolio has a total of 300 products, including the ones under development. The acquisition provides scale benefits as it becomes the second-largest generics player in the US by Rx, the second largest derma player and largest Indian company in the US. With this deal, the company is well-poised for a boost in its profitability, hence one could look to buying this stock. 

POST CORRECTION
RBL Bank
BSE Code: 540065
CMP: Rs.609.30

After the recent correction, there are select stocks that could be bought. RBL Bank is one of India's fastest growing private sector banks with an expanding presence across the country. The bank has increased its stake in Swadhaar Finserv and this can potentially act as a major facilitator in the microbanking segment. RBL's smart tie-up with leading players such as Bajaj Finserv and Bookmyshow has helped it to source about half of its credit cards business through them and, within a short span, it has become the fifth largest in term of spends per account and bank is looking to double it card base during FY19E. This stock might take a leap in the next few weeks.

ALTERNATE FUELS
Bajaj Auto
BSE Code: 532977
CMP: Rs.2930

In a historic decision at the SIAM convention, the Minister for Transport Nitin Gadkari made an announcement on moving to a ‘no permit' regime for autorickshaws powered by alternate fuels. Bajaj is the market leader with 86 per cent market share in the alternate fuel 3-wheelers and the company will be the biggest beneficiary from the abolition of permits. To capitalise on these positive developments, Bajaj will shortly enhance its production capacities of 3-wheelers and quadricycles to 1 million per year. Buy this stock for handsome gains. 

AND FINALLY..
Alembic Pharmaceuticals
BSE Code: 533573
CMP: Rs.638.70



Alembic Pharma is engaged in developing formulations and active pharmaceutical ingredients (API). The Company mostly focuses on anti-infective, analgesic and, cough and cold therapies. The stock has been witnessing good volumes in the past few trading sessions. Market sources suggest that the stock may continue to move northwards in the short term on the back of some positive announcement that is expected to be made shortly. Therefore, the stock can be looked at from a short-term trading perspective. 

(Closing price as on Sept 07, 2018).