Albert David - Prescription for Gain - Sunidhi

Albert David (ADL), a part of the well-known Kolkata based Industrial House of "Kotharis" is distinguished in the field of manufacturing Pharmaceutical Formulations, Infusion Solutions, Herbal Dosage Forms, Bulk Drugs and Disposable Syringes & Needles has its base in Kolkata, India. Equipped with cutting edge research and development standard and scientific skill, ADL develops new products for the demanding marketplace worldwide.

ADL made a modest start in 1924 with a single manufacturing facility. Today, it has three manufacturing facilities located in Kolkata, Ghaziabad and Mandideep. The Ghaziabad & Mandideep plants are WHO CMP & ISO 9002 certified and the Kolkata bulk drug is USA FDA approved. Some of ADL's bulk drugs are also already approved by UK MCA and European Council. Mandideep plant has quality accreditation of ISO 13485:2003 and CE Certification through DNV Norway.

ADL's core competence stands out in the manufacturing of specialty Formulations, Herbal Products, Disposable Syringes & Needles, Bulk Drugs, Oral/Internals Medicines, Topical Agents, Vision Care and I.V Solutions. ADL also pioneered the use of FFS Technology in I.V Fluids in India. ADL's pioneer product Sodium Stibogluconate, which is used to treat leishmaniasis are manufactured by ADL and is sold under the name 'Sodium Antimony Gluconate' and distributed worldwide through IDA Amesterdam.

ADL operates in various therapeutic segments, including large volume parenterals, anxiolytics, disposable syringes and needles, herbal drugs, nutritional products, neurotropics, anthelmintics, haemostatics, cough preparations, laxatives, skeletal relaxants, and anti-arthiritic/chondroprotective agents.

Awareness towards healthcare, government schemes and life style is expected to fuel the growth of pharma industry. Another factor is the partnership between the MNCs and Indian Companies. These were seen in the form of co-marketing, co-promotion licensing and joint venture. Big takeovers and mergers were order of the day.

ADL is accredited with various distinguished technical house like Rousell Morishto of Japan, which is a subsidiary of Ajinomoto Co. Inc., the world's largest manufacturer of amino acids. Along with Phamaplan GmBH of Germany, ADL has also successfully established a landmark in marketing of the prostaglandin of UPJohn USA.

ADL has adopted a highly focused approach for fueling higher growth. Its aim will be to build brands and generate maximum revenue from them. Also it has planned the development of new products and entry into new segments, which will increase the market share.

At the CMP of Rs. 243, the share is trading at a P/E of 9.3x on FY15E and 7.1x on FY16E. We recommend BUY with a target price of Rs. 360 in the medium-to-long term at which, the share will trade at a P/E of 10.5x on FY16E.

Shares of ALBERT DAVID LTD. was last trading in BSE at Rs.313 as compared to the previous close of Rs. 288.9. The total number of shares traded during the day was 125538 in over 5330 trades.

The stock hit an intraday high of Rs. 319.9 and intraday low of 287.3. The net turnover during the day was Rs. 38995206.

Source : Equity Bulls

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