Amrutanjan Healthcare Ltd - ZENMoney

Company Profile: Amrutanjan Healthcare Ltd started in the year 1893. Its 118 year old Amrutanjan brand is among the top 100 most trusted brands in India. The main segments of the company are OTC Products and Non carbonated Beverages.Under OTC products, the company offers entire range of pain and congestion management products along with health care products for both children and adults. Under pain Management the company has brands Amrutanjan,Body Pain,Roll On and Amrutanjan Joint-Muscle spray and in Congestion management various products are available on 'Relief' name. Under healthcare products, Diakyur(for controlling Blood sugar level) Decorn(Corn Caps) are the two products.In feb. 2011 the company acquired Siva's Soft Drink Private Limited which manufactures and sells fruit drinks under brand name & trademark 'Fruitnik'. Fruitnik is available in three varieties- Apple, Grape and Mango. Company also owns 2 pain management clinic centers in Chennai.

Strengths:

- Has established brands with wide products like Amrutanjan, Body pain creme, Relief and Roll on. The company is one of the India's top companies in the Rubefacient(Causing redness, as of the skin) category.

- Company has strong financials with low D/E of 0.18 and cash equivalents of Rs 39.84 crore.

- Strong R&D department which is the backbone of the company.

Concerns:

- Increase in cost of raw materials and other inputs which puts pressure on margins of the company.

- Heavy competition in the domestic markets in OTC segment.

Outlook: The company is well positioned to tap the increase in demand for OTC products under pain care segment with strong retailers & stockists, by launching new products and by repositioning its existing brands. With strong in-house R&D,the company is trying to position itself as a specialist in the segments it is catering to. Focus on Pain management clinics, launch of products in the OTC pain care,congestion relief and healthcare segment combined with a healthy performance from the Beverages division is expected to increase the topline and bottomline growth of the company in the coming quarters.

Source : Equity Bulls

Keywords