HIKAL– jointly promoted by Hiremath and Kalyani groups is in the manufacturing of chemicals and intermediates for sectors like Pharmaceuticals,Biotechnology and Crop protection. About 70% of company’s earnings is coming from exports and having strong marketing tie-ups with multinationals includes Bayer,Syngenta,Degussa and Pfizer.Company is also very active in contract research(CRAMS) through its 100% subsidiary ‘Acoris’. Company’s manufacturing facilities are located in Taloja,Mahad,Bangalore,Panoli and Pune.Hikal is proving support for Discovery Research, Process Development, Analytical Method Development and Custom Manufacturing and gained good reputation among multinational companies.Company’s expertise and lower wage structure prevailing in India compared with foreign countries providing enough scope for growth in these fields. Hikal is following stringent quality standards and its sites are approved by USFDA. In last financial year company’s performance was dismal due to adverse currency fluctuation and lower demand scenario.Now things are improving and it came to growth path.For the nine month ended December quarter , HIKAL reported a sales of Rs.473 Cr and a net profit of Rs.39 Cr which is far better than last year.Considering the quality of management ,potential of the industry and scalability of business – HIKAL is a good BUY @Rs.269/- for medium to long term.
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