PULSE TRACK
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Infrastructure Index up 8.7% for January 2007
STOCK UPDATE
Elder Pharmaceuticals
Cluster: Apple Green
Recommendation: Buy
Price target: Rs508
Current market price: Rs372
Elder strikes it again!
Elder Pharmaceuticals (Elder) has entered into an in-licencing alliance with M/s. Laboratorios Farmaceuticos Rovi, S.A. (Rovi) of Spain to market advanced heparins (anti-thrombotics) in India for treatment and prevention of thrombo-embolic venous diseases like deep vein thrombosis and pulmonary embolism.
VIEWPOINT
Sical Logistics
Sical to demerge non-core businesses
We attended Sical Logistics' conference call to discuss the de-merger of its non-core businesses. We present below the key takeaways from the call.
- Sical Logistics will be de-merging its non-core businesses, namely the trading (building material), coffee plantation and vehicle service businesses, into a new company called Sicagen.
- Sical Logistics is already in the process of selling its other non-core businesses for a consideration of Rs100 crore (of which Rs45 crore has already been realised). After the proposed de-merger and sale, Sical Logistics will become a core logistic company.
- The de-merger will be a mirror split of the existing company whereby the equity shareholders will receive shares in Sicagen in the ratio of 1:1.
- The assets of the new company will range between Rs300 and Rs350 crore. This will include loans and advances sanctioned by Sical Logistics to its subsidiaries.
- The management expects a top line of Rs270 crore and a profit after tax of 3-4 crore for Sicagen in FY2008.