Chart itself tells the story
Trigger:
There are news around the streets that Reliance, Ranbaxy , Nicholas Piramal are in the race to take stake in this company.
Fundamentals:company is on fast track in terms of expanding its production capicity and taking a huge step to transform from a chemical manufacturing company to a Research based Biotechnology company. Due to monopoly of few of their products like Glaze Bore(used in ceramic and tiles industries) and Indo Borax(mainly used in agriculture Biotechlogy), they have kept the operating margin very high.
Development plans:With the increasing demand of boric acid due to the ban of import of boric acid in India, they have successfully increased the production of boric acid from 300 tons/ month in Oct 06 to 700tons/month in June 07. Now they are targeting to increase it up to 1500 tons/month by the end of FY07.
Risks: movement of the price of share has been very fast from 35 levls to the current level.
Suggest to keep the stock for short term and move out of this script once individual targets are achieved.
1 comment:
Targets achieved in just two days.
only buyers no sellers.
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