Bright Future for Pharma Industries

Realty Woes…

The real estate sector has not been the one to bet upon for some time now. The main reason behind that are the rising inventory and debt levels. In a recent development IVRCL has initiated Corporate Debt Restructuring (CDR) process to get its loan repayment period extended. This is another addition in the long queue of companies that have gone for CDR process. On the books till September 2013, IVRCL, had nearly Rs 3000 crore debt, including Rs 2795 crore of short-term borrowings. The company has been incurring losses for sometimes now. It is better to stay away from the stock for the time being.

Digitized!

The largest software company of the country Tata Consultancy Services has announced to create a separate business unit which will only focus on the providing digital solutions. As per the company this segment is likely to add billions of dollars to the revenue over the next few years. The Digital Software & Solutions Group has been designed to help customers make the transition to using emerging technologies and provide modular, industry-tailored solutions. No doubt this company is a contender to perform in the long run. Hold on to garner better returns going forward.

Molecular Advancement….

Premier biotechnology company Biocon introduced CANMAb (150mg/400mg), a biosimilar trastuzumab for the treatment of HER2-positive metastatic breast cancer in India. The drug is developed jointly by Biocon and Mylan under a global partnership. This is the world’s first biosimilars version of Herceptin. This is introduced for the benefit of the Indian patients as breast cancer is the most prevalent cancer among Indian women ahead of cervical cancer and CANMAb will offer a high quality, more affordable option to breast cancer patients in India. No doubt this will provide some relief to the suffering patients from the high cost of treatment.  

Growing Inorganically

The investors of Aurobindo Pharma are the one who are smiling at present owing to the dream run that the stock had witnessed in the recent past. However, the reason to smile has not ended. The company has added another feather to its crown by signing a binding offer to acquire commercial operations in seven Western European countries from Actavis plc. Actavis and Aurobindo will be entering into a long term commercial and supply arrangement in order to support the ongoing growth plans of these businesses. The acquisition expands Aurobindo’s front-end operations into five segments viz.  generics, prescription products, over-the-counter products, hospital products and generics tenders with approximately 1200 products and an additional pipeline of over 200 products. Although the businesses are currently making loss, Aurobindo expects them to return to profitability in combination with its vertically integrated platform and existing commercial infrastructure.

Vrooming Ahead?

The monthly sales numbers for auto major Tata Motors on the domestic as well as on the global front has been dismal. But still the stock managed to get attention among investors as they upgraded their targets in the recent past. In a recent development the company has unveiled its next-generation petrol engine family, Revotron, that will power its future models in the passenger vehicle market. The company has also launched its first petrol vehicle engine from the series, Revotron 1.2T. The engine has been designed based on feedback from car owners, car enthusiasts and drivers from across the globe. This is likely to add some more competition to the petrol run car market primarily dominated by Maruti Suzuki India. 

Competition Ringing

In a surprising move the telecom unit of Reliance Industries, Reliance Jio Infocomm has applied to bid in a spectrum auction that is slated to happen in the near future. The entry of the company in the bidding process is likely make the bidding process a fiery one as it will certainly try to grab the spectrum at any cost. Keep an eye on this battle among the players who has shown interest in the spectrum.