Hikal Ltd Pharmaceutical company ( A small cap can turn mid cap to large cap in up coming years )
Hikal Ltd Date 04/12/2020 (CMP: Rs 171, Market cap: Rs 2,113 crore) Source company website Hikal trades at a significant discount to its peers in the CDMO space, which we believe should reduce, given multiple catalysts. Q2 topline growth has been led by a 34 percent YoY jump in the pharma business which now constitute 75 percent of sales. This was helped by increased volumes of newly-commercialized products and commissioning of additional capacity in Bangalore. However, the crop protection business was impacted as a major long-term contract manufacturing customer deferred shipments worth Rs. 40 crore from Q2 to Q3. Capex plan resumed: Hikal's capex program worth Rs 300 crore, which was delayed due to the pandemic, has now resumed and is expected to be commissi...