Update : Wockhardt Ltd

We recommended Wockhardt Ltd in Sep-12 (Refer : http://atulgandhicom.blogspot.in/2012/09/reborn-with-vigour-vitality-wockhardt.html) Share price appreciated subsequently from Rs  1184 to Rs 2166 in Mar-13.

We saw steep fall in share price in last week, price touching to low of Rs 1066 (Current price Rs 1277). Management has informed “Company has received an 'import alert' from USFDA on one of its manufacturing unit located in Waluj near Aurangabad. The impact of the import alert on the revenues is estimated to be in the range of $100m on an annualised basis. The Company is taking all steps to address the concerns raised by USFDA and shall put all efforts to resolve the issue at the earliest.”

FY2013 company’s sales has grown to Rs 5609 crore from Rs 4351 crore in FY2012, an impressive 29% growth. $100m approximately constitute 10% of company’s FY2013 sale. Impact of ‘import alert’ can lead to sluggish growth in current financial year.

It may take few months to resolve ‘import alert’ issue & thereafter we will see re-rating of stock price. We believe there is potential for appreciation in Wockhardt Ltd stock & recommend to hold / renter.

Disclaimer: 

Any purchase/sale of a stock involves a high degree of investment risk. Caution all investors that they may lose some or all of their investment if they decide to purchase any stock listed here. 

Market Update: Advantage of Rising Market

 In previous blog on 17^th Feb 2013, we predicted weakness in market along with advising selective stock picking. Subsequently market has fall to 18144 in Apr-13. From 18144, we had seen correction phase as well as upside breakout.

Last five week we saw market rising every week. We may see lots of volatility in coming period as market advances further. As market is rising and advancing towards high, we advice (in coming rally)
a) Exit from stock which may be brought in past rallies but now not performing well or future of sector is uncertain.
b) Exit from stocks where valuation is at peak, not backed by their financial performance.

Current rise reminds me, Jan-12 to Feb-12 sharp rally which saw sharp 3000 points rise in sensex followed by sharp correction. Let’s see how future will get unfold.

Disclaimer: Any purchase/sale of a stock involves a high degree of investment risk. Caution all investors that they may lose some or all of their investment if they decide to purchase any stock listed here.

Update: Jubilant Foodworks Ltd

We recommended stock at time of IPO in Jan-10. Stock offer price was Rs 145 which got listed at Rs 229 (Close Price). 

We valued the stock at 60+ pe ratio. Kindly refer ( http://AtulGandhicom.blogspot.in/2010/01/ipo-update-jubilant-foodworks-ltd.html )

Stock has given fabulous return in past

Standalone Financial Yearly (Rs in Crore)

Standalone Financial Quarterly (Rs in crore)

In last 3+ years (40 months), stock has multiplied 7 times IPO offer price & 4.5 times listing day (close) price. 

We observe growth rate has come down over a period of time.  We see opportunity to book partial / complete profit.

Disclaimer: Any purchase/sale of a stock involves a high degree of investment risk. Caution all investors that they may lose some or all of their investment if they decide to purchase any stock listed here.