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Post by Equity Section on Nov 11, 2011 12:34:30 GMT 5.5
Zydus Wellness is a nice little FMCG company which is being getting hit hard currently by the markets. Its PE which was on the upper side of the 40s has fallen down to 32. Though, the recent quarterly result wasn't very encouraging. Still, one can look onto this company as this company has negligible debt & works on negative Working Capital.
In 2010, this company's stock prices had a spectacular run on the company's bourses.
The company has 3 strong brands - Everyuth, Nutralite and Sugar-free. The rationale for investment in this company is only upon the basis of the strength of these 3 brands. Yes, this company suffers from some distribution problems, as is quiet evident from the non-visibility of its products on some retailers shelves, both organise & unorganised.
Overall, Zydus is a patient bet.
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Post by indrajit on Nov 11, 2011 12:46:44 GMT 5.5
I must admit one thing. I'm very pleased at falling prices of this company. It provides opportunity to everybody to get into this company at cheaper valuations. This company is led by strong brands & has spent loads of money of branding. Has got a good recall. I'm waiting for further dips...
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Post by devesh on Nov 11, 2011 21:29:01 GMT 5.5
I just didn't like marginal growth in Zydus Wellness sales. And further, I didn't like the idea of opening manufacturing facilities in Sikkim by Zydus Wellness. Its one of the earthquake prone zones of India. Plus, Zydus Wellness connectivity'll be vulnerable always. If anybody has heard about Darjeeling problems, they know better than me. Transportation from Sikkim happens through only that area & that a real disturbed area as of now politically.
Overall, Zydus Wellness is a good bet....based upon financials. Low debt, high RoCE, big cash flows, everything's good. The 10% fall in Zydus Wellness prices today was really threatening though.
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Post by Equity Section on Nov 11, 2011 21:35:45 GMT 5.5
Devesh, you'e views're pretty interesting. But the thing is that only time'll justify this decision. ANyways, it was really interesting observation. I just didn't like marginal growth in Zydus Wellness sales. And further, I didn't like the idea of opening manufacturing facilities in Sikkim by Zydus Wellness. Its one of the earthquake prone zones of India. Plus, Zydus Wellness connectivity'll be vulnerable always. If anybody has heard about Darjeeling problems, they know better than me. Transportation from Sikkim happens through only that area & that a real disturbed area as of now politically. Overall, Zydus Wellness is a good bet....based upon financials. Low debt, high RoCE, big cash flows, everything's good. The 10% fall in Zydus Wellness prices today was really threatening though. |
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Post by Equity Section on Nov 11, 2011 21:36:38 GMT 5.5
I quoted in regards to the Darjeeling thing... I just didn't like marginal growth in Zydus Wellness sales. And further, I didn't like the idea of opening manufacturing facilities in Sikkim by Zydus Wellness. Its one of the earthquake prone zones of India. Plus, Zydus Wellness connectivity'll be vulnerable always. If anybody has heard about Darjeeling problems, they know better than me. Transportation from Sikkim happens through only that area & that a real disturbed area as of now politically. Overall, Zydus Wellness is a good bet....based upon financials. Low debt, high RoCE, big cash flows, everything's good. The 10% fall in Zydus Wellness prices today was really threatening though. |
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