Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
United Phosphorous (UNPO.BO; Rs158.50; 1H)
Takeaways from Mumbai — United Phosphorus presented at the Citi India
Investor Conference in Mumbai. Below are key takeaways.
What's New? – United Phosphorus indicated that the off take during the quarter
has been fairly good so far. Pricing has also been favorable in certain products
and, with low inventory levels in trade, favorable weather should see healthy
growth rates.
Acquisition plans key for expansion – UNPO reiterated its stance of not
considering acquisitions with a payback period of more than 3-4 years.
Considering the high surplus cash available to it, UNPO continues to look out for
acquisition targets to enhance geographic presence and product portfolio. It
believes that there will be a fresh round of consolidation among mid-sized firms
and that it is well positioned to capitalize.
Large Generic opportunity awaits – Besides the inorganic initiatives, almost
US$4bn worth of products are expected to lose patent protection in the next few
years. UNPO expects to be a key participant and emerge as a significant player
in these products as well. It expects emerging markets to grow faster that
developed markets.
Europe product registration guidelines getting stringent – While this could
disrupt certain products from time to time, this is also likely to accelerate
consolidation, as it would require significant investment and time to get new
products registered as well as maintain existing registrations. Over the long term,
this should benefit stronger, established players such as UNPO.
Product Portfolio Development – UNPO continues to invest in developing
products with a focus on formulations and does not intend to enter the novel
molecules space at this moment. However, their patented/proprietary product
portfolio contributes c17% of their total revenue.
Other Key takeaways – 1) Expects minimal impact of the DEPB benefit
withdrawal and working towards a strategy to tackle this; 2) Expects Europe biz
to pick up after a poor FY11.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
United Phosphorous (UNPO.BO; Rs158.50; 1H)
Takeaways from Mumbai — United Phosphorus presented at the Citi India
Investor Conference in Mumbai. Below are key takeaways.
What's New? – United Phosphorus indicated that the off take during the quarter
has been fairly good so far. Pricing has also been favorable in certain products
and, with low inventory levels in trade, favorable weather should see healthy
growth rates.
Acquisition plans key for expansion – UNPO reiterated its stance of not
considering acquisitions with a payback period of more than 3-4 years.
Considering the high surplus cash available to it, UNPO continues to look out for
acquisition targets to enhance geographic presence and product portfolio. It
believes that there will be a fresh round of consolidation among mid-sized firms
and that it is well positioned to capitalize.
Large Generic opportunity awaits – Besides the inorganic initiatives, almost
US$4bn worth of products are expected to lose patent protection in the next few
years. UNPO expects to be a key participant and emerge as a significant player
in these products as well. It expects emerging markets to grow faster that
developed markets.
Europe product registration guidelines getting stringent – While this could
disrupt certain products from time to time, this is also likely to accelerate
consolidation, as it would require significant investment and time to get new
products registered as well as maintain existing registrations. Over the long term,
this should benefit stronger, established players such as UNPO.
Product Portfolio Development – UNPO continues to invest in developing
products with a focus on formulations and does not intend to enter the novel
molecules space at this moment. However, their patented/proprietary product
portfolio contributes c17% of their total revenue.
Other Key takeaways – 1) Expects minimal impact of the DEPB benefit
withdrawal and working towards a strategy to tackle this; 2) Expects Europe biz
to pick up after a poor FY11.
No comments:
Post a Comment