Hope you are doing well.
On 30th Sep'22, we released our new stock recommendation for our Premium Members and would like to share with you details on the same.
How often do you get a Globally leading Pharma company, net debt free and at around 11-12 times FY 23 (E) earnings.
Not very often, right?
Well, if you put in several hours of stock research on daily basis and wait for the right moment, you do get a good investment opportunity every now and then.
The stock we recommended recently to our members has all the above-mentioned characteristics:
- Industry – Pharmaceuticals
- Strong entry barriers - Stringent regulations and time taking approval process
- 25% + Sales and PAT CAGR over the last few years
- Market leader – Global leader in its product segment
- Minimal debt – Net debt free with large surplus cash
- Good promoter holding
- Capacity expansion - Executed and ongoing plans in place for future growth
All the above and most importantly at reasonable valuations considering the stock is quoting around 11-12 times FY 23 (E) earnings.
As mentioned above, waiting for the right moment is important because the same stock wasn’t very cheap 2 years back.
Thanks to temporary troubles in the pharma industry, the stock is down more than 50% from the peak and is now offering a good investment opportunity in our view.
To sum it up, considering expected bottoming out of the industry, market leadership, significant improvement in balance sheet, high entry barriers and cheap valuations, we have recommended the stock to our members
You can get this new recommendation along with other recommendations, by subscribing HERE