Gupta Equities has a BUY on ALBERT DAVID LTD with the following Recommendation,
The latest IMS reporting indicates that the Indian pharmaceutical market has shown growth of little over 20% for 12 months ended July 10, compared to the global growth rate of about 5%. This would further attract global companies to enter the domestic drug market triggering more buyouts of Indian companies by multinational drug makers. In terms of therapeutic performance, the anti-diabetic segment recorded the highest growth for these 12 months at 29% in value among various therapeutic segments followed by the genito-urinary and sex hormone segment recording a growth of 24% and cardio vascular system and nervous system medicine showing 22% value growth for the 12-month period.
Focusing on the growth visibility in the pharmaceutical space and accordingly a company that is rightly placed to garner from this opportunity is Albert David Ltd, this weeks Pick of the Week. At the CMP of `153, Albert David Ltd 6.4x its FY11E earnings of `23.8 Long term investors can add Albert David Ltd to their portfolio.
