Small Cap Pick - Ind-Swift Laboratories

It is small cap company listed on BSE and NSE engaged in research, production and marketing pharmaceutical products and formulations. The company has entered into an agreement with eight international pharma companies to source their requirements of clarithomycin, fexofinadine, roxithromycin and candesartan. The chandigarh based company has manufacturing facilities in Punjab and Jammu. The company has entered into marketing agreement with some major international pharma companies to market their products across the globe.

The market capitalisation of the company is Rs.342.4 having PE ratio of 3.91 against industry PE of 11.42. The current market price of the scrip is Rs. 100.65 as on 20.07.2011 on NSE. The financials of the company is strong and can be seen as the revenue from the operations of the company increased from Rs.462.97 crores in FY 2008 to Rs.1031.21 crores in FY2011. Accordingly the net profit of the company also grown from Rs. 31.02 crores to Rs.87.62 crores during the same period.

EPS of the company has increased from Rs. 12.91 in FY 2008 to Rs. 25.60 in FY 2011.The financial ratios like current ratio of the company is 2.19 showing good liquidity and return on long term funds utilised by the company comes to 13.09% as on balance sheet drawn on 31.03.2010.

In June 2010, SBI Magnum fund has acquired 137.145 shares of the company showing confidence in the future potential of the company.

Potential Multibagger - Aurobindo Pharma Ltd

It is largest vertically integrated pharma company in the country and the company  is engaged in the manufacturing business of pharmaceutical formulations, formulation ingredients and organic intermediates. The products manufactured by the company covers wide range like antibiotics,anti-retrovirals,anti -diabetics, CVS,CNS, Gastro-enterologicals and Anti Allergicals.In order to produce the wide ranged products and its intermediates and supplying them to the consuming centres, the company has 14 manufacturing plants across the world conforming to GMO/ISO regulations and well equipped R&D facility.Aurobindo Pharma has identified international operations very well and exports its products to nearly 100 countries across the world.

Aurobindo Pharma is one of the top 5 manufacturers of semi-synthetic pencillin in the world.Recently the company has signed  a licensing and supply agreement with Pfizer to supply dosages and sterile  products.Pfizer has acquired rights from the company to sell 75 drug as pills and 12 injectables in US and European Market.

 The market capitalisation of the company is Rs.5084.43 crores having PE ratio 8.56. The current market price of the scrip is Rs.174.65 as  on 22.07.2011.

 It is one of the  companies which are edium and long term bets for investment..The financials for the last 4 years are as given below:

 

Figures in rs crores	FY 2011	FY2010	FY2009	FY2008
Income	4284.83	3511.76	2630.28	2421.13
Net Profit	593.80	525.76	128.54	290.78
Reserves & Surplus	2540.50	1886.50	1293.95	1193.72
Debt	2317.72	1944.78	2144.68	1755.65
Share capital	29.11	27.86	26.88	26.88

EPS of the company is Rs.20.40, Current ratio is 1.21, netprofit margin is 14.33%  and return on long term funds is 23.31% as on 31.03.2011.

 The growth of the company is slightly erratic, but with recent exclusive marketing arrangement with Pfizer, the company will post steady growth in coming  years.

In June 2011,HDFC top 200 fund, equity funds, prudence funds , Birla Mutual fund , SBI Magnum, Kotak mutual funds have invested substantial amounts in Aurobindo Pharma.  21.526.099 shares  of   the  company  have been purchased by mutual funds in June 2011.In addition to the above mutual have acquired shares earlier also showing confidence in the future growth of the company.

MID CAP PICK FOR LONG TERM - EMAMI LTD

It is mid cap  company listed  on BSE  and NSE and the company  is engaged in the  production and marketing business of  personal care products. The product profile includes cosmetics, ayurvedic products, and other personal care items. The prominent brands are Navaratna Oil, and the men’s fairness cream.

The Calcutta based company is exploring for acquisitions in the healthcare space to expand the foot prints of its hospitals business in the country. At  present the Emami and Sharachi group in collaboration with West Bengal government is running AMRI hospital and investing substantial amount of `400 crore to increase the number of beds to 1500 from 900 during 2011-12. The future plans for expanding the hospital business other than eastern India is being explored on acquisitions.

It has merged Zandu Pharma and FMCG business in 2009.

The market capitalisation of the company is `7707.06 crores with PE ratio around 34 (as on 19-Jul, with stock price around ` 509.

It is one of the  companies which is a good  long term bet for investment. The financials for the last 4 years are as given below:

Figures in rs crores	FY 2011	FY2010	FY2009	FY2008
Income	1239.69	1013.56	729.71	586.37
Net Profit	227.49	165.40	87.52	92.75
Reserves & Surplus	667.89	605.65	282.90	276.57
Debt	N.A	253.25	440.08	35.19
Share Capital	15.13	15.13	12.43	12.43

The EPS of the company is Rs. 15.04 and Rs.10.93 as on 31.03.2011 and 31.03.2010.

You may observe sudden increase in debt from `35.19 crores in FY2008 to ` 440.08 crores in FY 2009 due to expansion of manufacturing facilities for acquiring land, bldg , plant and machinery  and other assets by obtaining secured loans from financial institutions. This has also resulted in less profit in FY 2009, but subsequently, the growth continued satisfactorily.

In June 2011, HDFC, DSP Black Rock, Franklin and   Kotak mutual funds have acquired the shares of the company under their different schemes. Hence mutual funds have also significant holding in their portfolios showing strong confidence in the growth of the company.

SMALL CAP PICK - ANJANEYA LIFECARE LTD

It is small cap company listed on BSE and NSE and the company is engaged in the research, production and marketing business of second generation of antimalarial drugs. It has acquired the assets of Prophyla Biologicals (P) ltd  (including plant, machinery, land and building, furniture and fixtures, trade marks and other movables) situated in Pune district in 2010 and ventured into manufacturing of finished dosage formulations. It has also commenced production of third generation anti-malarial drugs in Mahad unit in Maharashtra. The company has received GMP certification for both the units at Mahad and Pune locations. Export status house has been awarded by Zonal joint director of foreign trade for 5 years valid up to 2015. The company has also obtained ISO 2200 2005 certification in 2010 for manufacturing and despatch of Quinine salts for its use as food additives.

 The market capitalisation of the company is Rs.482,57 crores having PE ratio 13.40. The current market price of the scrip is Rs.383.70 as on 15.07.2011.

It is one of the companies which are long term bets for investment. The financials for the last 4 years are as given below:

Figures in ` crores	FY 2010	FY2009	FY2008	FY2007
Income	161.67	90.13	21.88	0
Net Profit	15.08	5.08	2.32	0
Reserves & Surplus	43.94	7.36	2.29	-0.03
Debt	59.69	37.67	12.44	0.54
Share capital	5.78	4.95	2.00	0.01

The EPS of the company is Rs.26.11, Current ratio is 3.30 and return on long term funds is 26.43% as on 31.03.2010.

Potential multi-bagger small-cap - CAMSON BIO TECHNOLOGIES

Camson Bio Technologies Ltd is a Bangalore based integrated Agricultural biotech company covering hybrid seeds, bio-pesticides and bio-fertilisers. It aims to provide zero residue vegetables and fruits to the society. It has presence in 12 vegetables and estimated to give 30 to 40 % higher yields than its closest competitors with longer shelf life. Decision to phase out 200 chemical pesticides by European union, and increasing concern over usage of chemical pesticides is giving bio-pesticides a good market. Global demand is likely to double by 2014 for these products.

Camson is well positioned to tap the growing demand in this segment. It is also scouting partners in Brazil and Indonesia for setting up manufacturing facilities, where the company will transfer technologies on royalty/license basis.

A look at financials of the company show steady growth, and good balance sheet:

	FY2011	FY2010	FY2009	FY2008
Figures in ` Crore
Income	99.14	79.98	49.91	41.91
Net Profit	22.03	13.66	8.11	7.79
Reseves & Surplus	53.32	26.29	15.85	8.06
Share Capital	18.13	16.05	13.70	9.80
Debt	N.A	1.00	1.11	1.83

The current valuation is pretty attractive. As on July 15, 2011 - the P/E ratio was around 8.7. The company has given around 20% return on equity.

In June 2011, SBI Magnum Fund purchased 607,125 shares of Camson Bio for Rs. 226.73 Crore and before that, 452,990 shares in March 2011.  Again, signs of a good bet!

Overall, looks a solid mult-bagger small cap for the long term!

Potential multi-bagger in the Energy/Power/Engineering space - BGR Energy Systems

BGR Energy is one of the fastest growing engineering companies growing in the power sector specially in BOP and EPC space. It has grown from small space in BOP into big player in power sector. In addition, it has entered into BTG space by entering into collaboration in the form of JV with Hitachi,which provides BGR an edge over its competetitors in BOP segment. The current order backlog of Rs. 8000 crores and it has bids placed worth Rs.18,000/- crores particularly with NTPC and Ennore and Rajasthan projects. Such projects takes time to materialise and hope to maitain topline frowth of 15% during FY12.

The company's BTG venture is going on track and has procured necessary land to set up its boiler facility. The company plans construction work after monsoon and expects production during FY13.Construction work of turbine facility will also begin soon and production is envisaged in secnd half of FY13. The massive power generation plans of the government gives plethora of opportunities to BGR Energy systems.

Most of the research reports of leading brokerages are optimistic about the facts and assurances given by the manangement for future growth.

Excellent Mid Cap Stock - Power Finance Corporation

POWER FINANCE CORPORATION is a finance company to sanction loans to power companies and the stock with very good potential for growth and is useful for medium term investment. The current market price of the scrip is  `  213.15  as  on 14.07.2011. The company plans to disburse loans amounting to  ` 35000 crore in FY12 and in also talks with NPCIL for lending   ` 12000 crore for setting up 2 nuclear power plants. The financial for last 4 years are given below:

figures in ` crores	FY 2011	FY2010	FY2009	FY 2008
Income	10128.49	8002.10	6557.37	5029.33
Net Profit	2618.49	2357.25	1969.96	1208.68
Share Capital	1147.77	1147.77	1147.77	1147.77
Reserves & Surplus	12776.51	11268.99	9248.83	8676.95
Debt	NA	81032.69	64576.91	51044.41

Market capitalisation of the company is  ` 24464.65 crore and PE ratio is 9.34. The revenue and profit of the company has doubled during last three years and with the type of orders it has received, the company is expected to grow with a healthy rate.

The stock is attractive for mid-term pick and most of the brokerage houses recommend the stock to purchase after every decline for decent gains.