Reviews

INDIAN TONERS & DEVELOPERS 

Ticker : 523586
FV:  Rs 10
52-Week H/L: Rs 344.70/176.10 

We had recommended Indian Toners & Developers in Volume No 34. Issue No 15 (dated Jan 29, 2018), when the scrip was trading at Rs 298. Our recommendation was backed by factors like robust financial growth and capacity expansion. In FY18, the company merged its subsidiary ITDL Imagetic having installed capacity of 2,400 tonnes with itself. On a consolidated basis in FY18, its revenue dipped by 7.2 percent YoY. However, its PAT surged 10.9 percent YoY on account of higher other income and lower tax payment. The target market size for the company’s products is comparatively small, thereby limiting its growth trajectory. Also, the company is facing stiff competition through imports from China and Japan. Thus, in the short run, the growth outlook for the company is cautiously positive. Hence, we urge investors to gradually REDUCE exposure to the stock. 

BLISS GVS PHARMA 

Ticker: 506197
FV:  Rs 1
52-Week H/L: Rs 230/146.40 

We had recommended Bliss GVS Pharma in Volume No 34, Issue No 23 (dated Mar 26, 2018), when the scrip was trading at Rs 201. Our recommendation was backed by factors like robust financials and new product launches. The company’s sales are majorly export-driven to the African countries, but due to economic instability and currency devaluations in Africa, the company's Q4FY18 revenue dipped. Also, it incurred net loss of Rs 13.7 crore in Q4FY18. In Q4FY18, it divested its subsidiary in Nairobi for a consideration of USD 12 mn. During the quarter, another subsidiary of the company acquired 60 percent stake in cosmetics-based company of Mumbai, which will enhance its product portfolio going forward. But, in the short run, we expect limited upside in the stock price and hence recommend investors to EXIT the scrip