Hot Chips - Bajaj Electricals & Biocon
12/5/2011 12:53 PM Monday
BAJAJ ELECTRICALS | BSE Code: 500031 | Volume: 1819 | CMP: Rs180
Bajaj Electricals has six strategic business units, namely E&P, Appliances, Fans, Luminaries and Lighting. It has strategic agreements with a number of international organisations for distribution arrangements. Backed by a strong brand name across domestic households and a diversified product base, it is set to ride the steady growth in consumer demand in the country. A realignment for the E&P division on the back of a healthy order book of Rs750 crore will help the company position the business vertical for effective monitoring and timely execution of ongoing projects. The introduction of new brands has already started to make a significance presence in the market. It is also believed that a strong dealer network and the opening of new branches across the country would help the company explore additional markets for its products. We believe that one can look at the stock from a medium to long-term perspective.
BIOCON | BSE Code: 532523 | Volume: 27000 | CMP: Rs318
Biocon is Asia’s largest insulin manufacturer and among the world’s largest statins and immuno-suppressants producers. It focusses on custom research and clinical research through its subsidiaries. Its domestic branded formulations business and the research service ertical are both on a high growth course, ensuring a steady revenue stream. With a growing global footprint, the company is anticipating big opportunities when the biosimilars and insulin analogs go off patent in CY 2014. Biocon is expected to register good growth in revenues going forward. The company also expects to maintain 35-40 per cent growth in its branded formulations business. The newlylaunched ‘Insupen’ with its aggressive pricing strategy, and an increasing market share in many therapeutic segments are factors likely to boost the domestic formulations revenue. The depreciated rupee may also act as a trigger, as a significant portion of its revenues comes from exports. We believe that one can look at the stock from a medium to long-term perspective.|
Disclaimer: The scrips in this column have been recommended with a short-term investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.
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