Share Trading Tips

BSE Code : 526953

Last week Venus Remedies came out with encouraging set of numbers for Q4FY10. Sales as well as net profit increased by 30% to Rs 81 cr and Rs12.75 cr respectively. Accordingly it ended FY10 with a topline of Rs 310cr and bottomline of Rs 45 cr posting an EPS of Rs 54 for the full year. Infact, it is the first & only company in India to manufacture fixed-dosage combination (FDC) injectables. It boast of developing nine innovative FDC products to treat mixed multi-bacterial infections causing life threatening diseases for the first time globally and even received four global product patents for the same. Today, company possess an active range of more than 100 generic and innovative products in different therapeutic segments (largely through injectables) like oncology, cardiovascular, antibiotics, neurology, anti-infective, anti cancer, etc. It has set up a full fledged clinical research division which is busy conducting phase I, II, III and IV trials and bio equivalence studies. For future  growth, company is betting high and expects significant revenue from sale of its own innovations such as ‘Potentox’ – for treating pneumonia, Tobracef’ – for treatment of complicated mixed bacterial infections of acute pulmonary exacerbations, ‘Sulbactomax’ – for curing pre & post surgical infections etc. To commercialize its innovations, company is simultaneously engaged in filing, procuring & registering its product in various countries across the globe. It has set up marketing offices in Germany,Colombia, Vietnam, Kenya, Chicago, China etc and distributors in CIS, Asia- Pacific, Middle East, Africa, LAC and Europe. For FY11 company may register further 20% growth and can post an EPS of Rs 65. Buy and hold.