Marksans Pharma

Marksans Pharma- Growth at Reasonable Price?

Marksans Pharma is a promising company with a presence across multiple countries in various geographies. Manufacturing facilities are in Goa, India, and Southport, UK. Focus areas include Oncology, Gastroenterology, Antidiabetic, Antibiotics, Cardiovascular, Pain Management, Gynaecology.
For more info check, http://www.marksanspharma.com
PRESENT DAY NUMBERS
CMP on Day 20th April 2021: Rs 58    Market cap: 2411 crore     FV: 1
Debt to Equity :- 0.03 Promoter Holding 48.2%  BV 18 Rs
Positives:

    • Debt Free Company
    • High Margin of Safety in Valuations as per Benjamin Graham’s Method of Valuation
    • India Ratings and Research (Ind-Ra) has revised Marksans Pharma Limited’s Outlook to Positive from Stable while affirming its Long-Term Issuer Rating at ‘IND A-’.
    • The company has relationships with diversified retailers in regulated geographies. Recently it got approvals from USFDA. The company’s front-end presence in key markets gives product approval opportunities optimally.
    • 500+ registered products
    • The company is No Longer into CRAMS, Over the years Marksans has been able to develop its brand.
    • The company has guided to reach 2000 Cr. revenue in the next few years.

Negatives:

  • Exposure to Foreign Currency Fluctuations on its Profits. The company has a large proportion of profits from overseas markets. 
  • Company is into High Regulated Markets which demands high standards, in 2016 Company had faced revoking of license for Goa Plant from UK Regulator.

Technicals:-
Marksans Pharma a few months back, has broken out and created a rounding bottom pattern, Pattern Potential for it is 97 Odd Levels. The breakout happened at 54 Odd Levels. For the Past Few Months, it is rejecting to go down below 54 on the Weekly Close Basis, Suggesting a Strong Base.

After a Long Consolidation for the past 4 months, It is now Placed Nicely for a Big Up Move.


My Take:-
    I have been Tracking Marksans Pharma for the past 5 years now, since when it came out of BIFR. Since then it’s been a tremendous success for marksans pharma in terms of turning the company into profitability. Mark Saldhana has done a great job of taking this company to the next level. The company aims to reach 2000 Cr. revenue in the next few years. Looking at Covid Times, Marksans Pharma Stock is Sentiment Positive to be in the space.
With Enough Patience, we will be able to see the levels of 100, 150, and 200 in Years to Come. Only time will tell how much Money We have Made Here!!!
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