Big Shots: Porinju Veliyath’s latest pick is PARNAX LAB LTD

Kerala investor and portfolio manager Porinju Veliyath has bought a new stock today.

His latest pick spotted in today’s (30/03/2017) bulk deal is Parnax Labs Ltd.

Porinju Veliyath bought 100,000 shares of Parnax at 55.52 a piece. The stock traded only on BSE  closed at 55.90 having a upper circuit filter of 5% in the T2T Segment.

ABOUT PARNAX: Parnax Lab Ltd. is a pharmaceutical company headquartered in Gujarat.

The company has subsidiary named “Naxpar Pharma Ltd” which has manufacturing unit in Baddi (Himachal Pradesh) and is into bulk syrup and tablet formulation manufacturing for pharma giants such as Glenmark, Kopran, Pfizer, Ranbaxy, Sun Pharma, Wockhardt, Zuventus, Wanbury, Cipla and etc to name a few.

The company has a vast product portfolio with core segments being: Alimentary System, Cardiovascular System, Musculoskeletal System, Anti-Biotics, Anti-Malarials, Central Nervous System, Vitamin Supplements, Respiratory System and Skin including Herbal Comestics and Nutraceuticals.

The manufacturing facilities of the company is well equipped along with a separate area for Ayuverdic formulations.

Naxpar Pharma is looking to acquire FDA/MHRA/TGA/MCA accreditation soon for the Baddi unit which help them venture out into the large export markets.

The company has its subsidiaries in Africa and Nigeria and also has a presence in Mauritius and Kazakhstan.

FINANCIALS:                                                                                                                               For FY2016, Parnax reported revenue of 71.18 crores, net profit of 2.51 crores and EPS of Rs 2.95. At current price of 55 Parnax is at a P/E of under 19. However if we see last 4 quarters data the EPS is at 5.35 giving it a P/E of around 10-11.

Currently PARNAX is at a market cap of just Rs 48 crores.

There is not a lot of Data available about Parnax online, and it doesn’t appear to be a famous script for investors. However, The Ace Investor blog by Prem Doshi has a detailed note on Parnax posted back in February 2015 so here is the link to the same: http://theaceinvestor.blogspot.in/2015/02/value-pick-parnax-lab-ltd.html

 

DISCLAIMER:  Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

DISCLOSURE: It is safe to assume that i might have Parnax Lab Ltd in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.

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