Stock Recommendations For Your Portfolio

SYMPHONY | BSE CODE : 517385 |Volume :2,112 | CMP :Rs 559

With an asset light model, the largest air cooler company in India, Symphony is a valuable bet that investors can look forward to in both short to medium-term. The company has a 50 per cent value market share in the organised market. With better penetration, supported by strong brand, it enables the company to command a pricing premium of around 10 to 12 per cent over competitors. This shows the pricing power of the company. Talking about its reach, the company has strong distribution network of 750 distributors along with more than 16000 dealers. The company plans to ramp up the dealer network to close to 40000 in the medium to long-term, which according to the company will be a driving factor going forward. The new range of products, I-series, Storm and Windows air cooler, have higher realisations and margins to the extent of 5 to 20 per cent, which enables higher realisation growth and margin accretion.

With focus in niche products like oral contraceptives and ophthalmic products, Lupin is all set to create further value for its investors going forward. A strong pipeline of para-IV filings and focused approach in its branded business in the US are other key elements of growth for Lupin. The company has remarkably improved its brand equity to occupy a significant position in the branded formulation business in both domestic and international business. Lupin is expected to see stronger traction in the US business on the back of the key generic launches in recent months and a strong pipeline in the US generic business with over 91 ANDAs pending approval, including 86 FTFs, to ensure future growth. The key products that are going to provide a lucrative generic opportunity for the company includes Nexium, Lunesta and Namenda , which will be going out of patent protection in FY2015. The Indian business, which has remained weak is expected to bounce back going forward.