Small cap multibegar stock

Small Cap Value Find Stocks Valuable small capital companies in indian share market. Multibagger companies hidden gems value buy stocks 2017 2018 ▼ Friday, April 13, 2018 Shukra Pharmaceuticals - Mismatch in Valuation Shukra Pharmaceuticals (Formerly known as Relish Pharmaceuticals) operated in the development and manufacture of drugs and dosage forms pharmaceuticals companies. The Manufacturing formulation facilities are spread over 10 Acres of plant situated at Gandhinagar, Rakanpur. Customer profile includes leading Manufacturers like Lupin, Cadila Zydus Healthcare Limited, Intas Pharmaceuticals Limited, Cadila Pharmaceuticals Limited, Makers Laboratories Limited, Agenta Pharma Limited etc. Currently the company operates in 3 divisions Capsules (General and Beta Lactum), Liquid and small volume parental covering major products related to Antibiotics (Penicillin), Anti Biotics (Cephalosporin), Macrolides, Quinolones, Anti Bacterial, Anti Fungal, Anti Malarial, Anti Viral, Sedative and Tranquilliser, Anti Ulcer, Beta Blockers, Diuretics, Analgesic, Analgesic (NASID), Muscle Relaxants, Anti Tuberculosis etc . The company has modified its existing plant and machinery and also purchased new machinery to start well equipped laboratory with a cost of 3.2cr. Benefits of the same started appearing since last quarter in terms of good quarterly results. Shukra Pharmaceuticals Limited is managed by promoters who are competent technocrats. Shukra Pharmaceuticals has started exporting to countries like U.K, U.S.A, Canada, Dubai, Denmark, Australia, Thailand, Singapore on smaller volumes currently. U.K based buyers further sell it to countries like Senegal, Ghana providing good margin expansion going forward. Growth trigger: Company received Lupin long term order recently upon the completion of capacity expansion. Financials: Observations: Good 20% CAGR is observed coupled with good margins improvement, which is great sign for any good company. Operating margins are improved from 12% to 40% in the last 2 years along with 8X improvement in net profit. EPS is improved by 6 times and for the 9months of the current FY eps stands @6.3rs, double the last year already. Estimating the similar results of Q3 for Q4 will give annual EPS of more than 10rs with current valuation at less than 7PE. Company is debt free company with nill loans on books Good to see that on back of improved performance management started giving dividend from last FY and expecting increase in dividend payout ratio. Conclusion: A debt free company established long term relationship with MNC clients, completed the capacity expansion, margin expansion in place, started dividend distribution indicating the promoter willingness to distribute profits and finally is available at less than 7PE with a market capital of just 10cr is nothing but valuation mismatch in my view considering the growth path ahead. Note: Company EPS is a error in results, Net Profit is divided by equity capital rather than number of shares, hence the mistake. Disclosure: I hold investment in Shukra Pharmaceuticals Limited and currently stock trades at 68rs. Registration Status with SEBI: I am a registered Research Analyst with SEBI under SEBI (Research Analysts) Regulations, 2014.