Thursday 8 May 2014

Vimta labs short term buy

Vimta Labs is India’s leading contract research and testing organization.  Established in 1984 VIMTA has an envious track record of serving several market leaders across the globe.VIMTA is a team of 748 professionals comprising 433 scientists in various disciplines such as Chemistry, Pharma, Medicine, Microbiology, Molecular biology and Informatics. The team is slated to double in next three years.VIMTA is a multi-site organization with more than 300,000 sqft world class laboratory facilities.The technologies deployed at VIMTA are current and leading edge, duly validated.

The company has started growing their balancesheet from september 2013 and from there on they have increased their profitability significantly. 30 Crs. of revenue and 4 crs. of profit in every quarter makes an EPS of 1.8 in each quarter. Considering the same performance going forward , at CMP of 109 company is ruling at the PE of 15. Most small cap pharma company rules around 20 PE. Further, one positive factor is promoters have increase their stake in the company which shows that they have faith in their business model. With this in mind, we initiate buy call on vimta labs for the target of 140 Rs.


1 comment: