Month: January 2008

Panacea announced WHO pre-qualification for their pediatric combination vaccines Easy Four (DTP+Hib) and Ecovac (DTP+Hep B) which implies global acceptability of these vaccines by various UN procuring agencies. Expect approval for the crucial pentavalent vaccine (EasyFive) as well to be in place shortly. The combined demand of all combination pediatric vaccines worldwide was US$600mn in 2005 and is estimated to grow up to US$1.6bn by 2012.

Driven by combination and IPV vaccines as well as robust 14%+ domestic formulations growth, we expect Panacea to deliver EPS growth of 44% in FY09E and 26% in FY10E. Overall, we estimate 35% EPS CAGR (FY08E-10E) on the back of 23% revenue CAGR (FY08-10E). (more…)

IDFC SSKI in a report punctured the hopes of Apollo Tyres stock. The tyre industry is more of a commodity play with limited pricing power for players despite >90% capacity utilization. Though select players have hiked prices by ~1% in December 2007 in the replacement market to counter rising raw material prices, MRF’s non-participation raises doubts on sustainability of the price hike and rules out future increases. (more…)

Citi in a research report released minutes ago has recommended a SELL on Religare. Religare is India’s fastest growing, most aggressive and leveraged retail brokerage entity. The stock is up 280% from its IPO price; currently trading at 30x FY09E EPS.

India’s equity markets have grown rapidly in both retail and institutional volumes. Trading volumes have expanded rapidly (+150% yoy) and have exceeded growth in market capitalization. While economic growth continues to be strong, and expect structural growth in retail volumes, the recent rapid pace of growth suggests near-term volatility. (more…)