Stock Recommendations For Your Portfolio

SUN PHARMACEUTICAL INDUSTRIES | BSE CODE: 524715 | Volume: 56246 | CMP:Rs 589 

After establishing its footprint strongly in the medium-term growth platform for all its three core generic business segments, Sun Pharma is now all set to take the next big leap. The company is looking forward to establishing its name as a global specialty pharma company. Its recent acquisition of DUSA, which is into the niche branded dermatology business, can be considered as an initial step in that direction. We feel the company’s track record in executing projects and plans is an additional factor that goes in its favour. It has succeeded in creating value through acquisitions, and we believe that this will continue going forward too. In the recent past, the company has received US FDA approval for the generic Pervacid. A joint venture it has entered into for a new class of therapeutics for ocular diseases is also likely to be value accretive going forward. One can look at investing in this stock from a medium-term perspective.

HAVELLS INDIA | BSE CODE: 517354 | Volume: 85020 | CMP: Rs 651

Since FY13, Havells India has shifted focus to its in-house manufacturing and has invested Rs 140 crore to expand its capacity. The doubling of its production capacity for lighting and fixtures to 40 million units per month is likely to augur well for the company going forward. This is in line with its plan to make it a manufacturing hub for Sylvania. The European and Latin American markets of Sylvania are showing signs of recovery. Reduction in Sylvania’s long-term debt from Euro 73 million to Euro 67 million YoY is another positive. What also acts as a catalyst is the strong distribution network of the company, comprising 20000 distributors across 91 offices. In FY10, the company introduced ‘GALAXY Stores’ a unique concept to provide a one-stop shopping destination for its products. Havells has opened 200 such stores and plans to double this number in the next two-three years. One can look at this stock from a medium-term perspective.