Results update: Ankur Drugs

I've written about Ankur Drugs in the past. I continue to hold the stock, though I booked some profits a few weeks ago and re-entered at lower levels, at around a price of Rs.135-145. The company came out with phenomenal numbers for the quarter ended December 2006.

Sales up 91% to Rs.66.7 crore
Net profit up 200% to Rs.6.9 crore.

Another good thing about this counter is the fact that promoters are buying shares from the cash market. Take a look at the non-promoters holding pattern over the trailing four quarters:

Mar'06 - 6,276,745
Jun'06 - 6,175,798
Sep'06 - 6,090,122
Dec'06 - 6,067,766

At the current market price of Rs.165, the scrip is trading at a price-to-earnings ratio of a mere 6.5 times. Going ahead, I expect the company to record a healthy topline and bottomline growth of close to 25%. The scrip can easily go up to Rs.250 per share from hereon. But, given a pending FCCB conversion, and therefore a dilution of equity, the upside maybe restricted to around Rs.225-230 per share. I plan to start booking profits beyond a price of Rs.200 per share, a further upside of close to 25%+.