Hunters of Dalal Street

Prolife Industries CMP: 159.7 Current market cap: 63 Cr  1. Company engaged in mfg of Dyes, Pigments, pharma and agro chemicals 2. After the demise of previous MD, his son taken over the responsibility of MD – He is just 28 years old but has extensive experience in R & D 3. Future growth a. Mgt planning for 150-200 Crs topline as the company invested in capex in the last 3-5 years from their cash flows b. New products added with better margin joining i. Violet acid which has world wide demand – they are tapping eurpoean markets ii. Very few players in producing this iii. Continous spending on R&D and getting c. Superb ROCE maintaining above 25% d. Fantastic cash management – entire cash cycle is less than a month e. With a net margin of 20-25 crs and higher ROCE, it can demand higher multiples of 40 times and can be a 1000 cr enterprise value (bcoz of net debt free too) 4. Deployed experienced mgt across different countries to grab more export share 5. Managemente is highly...

1.        Recording revenue before completing material obligations under the contract 2.        Recording revenue far in excess of work completed on the contract 3.        Recording revenue before the buyer’s final acceptance of the product 4.        Recording revenue when the buyer’s payment remains uncertain or unnecessary 5.        Recording revenue from transactions that lack economic substance (In these transactions, the so-called customer is either under no obligation to keep or pay for the product, or no product or service was even transferred in the first place) 6.         Recording revenue from transactions that lack a reasonable arm’s length process (While recognizing that revenue on transactions that lack economic substance should never be considered legitimate, transactions that lack a reasona...

Many have seen the rally in the pharma stocks from past one week Firstly what has happended in the pharma stocks in the recent past Pharma gaints like Sun pharma, Dr Reddys, Torrent pharma , Cipla, Biocon, Ipca labs, Abbott India rallied upto 50% from their 52 weeks lows in few days  Return of 50% in these downtrend markets makes everyone's attention because many investors are still finding bottom to invest which no one can predict But these companies are hitting 52 week highs in this bear market What made them rally like that? We all know, that the only issue running around the world is Covid-19. Where everyone is fearful, every business is shutdown in this scenario, there are some industries which are having benefit out of it i.e. Pharma sector Global countries like US, Brazil and other european countries looking outside for solution to this virus and a trending news has come w.r.t this virus i.e. Hydrochloride (HCQ) which can be used for treat...