Parke-Davis Spurts
Price on 9/05/97: Rs147
Price on 15/05/97: Rs 164
The Parke-Davis scrip perked up by 12 per cent on news that Warner Lambert proposed to hike its stake in the company. Warner Lambert, the $8 billion US healthcare company has applied to the Foreign Investment Promotion Board (FIPB) to hike its stake to 75 per cent from 40 per cent of the equity capital of Rs 12.05 crore.
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If this happens Parke-Davis (India) will have the highest foreign holding of any listed pharma company. It recorded a sale of Rs 176 crore and a net profit of Rs 7.57 crore for the year ended March 1996.
Tamil Nadu Dadha Pharma
Price on 9/05/97 Rs 63
Price on 16/05/97 Rs 75
This scrip registered a 19.05 per cent gain in the last week as the company is being merged with Sun Pharmaceutical Industries. Tamil Nadu Industrial Development Corporation, one of the promoter, has disinvested its entire 26 per cent stake in the company in favour of Mohanchand Dadha, the main promoter, at Rs 80 per share.
Tamil Nadu Dadha Pharma (TNDP) is the only indigenous bulk producer of anti-cancer drugs cisplatin, carboplatin and formestane. It also the only producer of molecules such as nicorandil (a new antihypertensive), gabapentin (a new antiepileptic) and fentanyl (an new analgesic).
CMC
Price on 9/05/97: Rs 55
Price on 16/05/97: Rs 49
The stock witnessed heavy buying in expectation of improved performance. However after Bombay Stock Exchange implementing a buying margin and this stopped the uptrend in this scrip. This scrip lost 11 per cent in the last week.
CMC has posted impressive performance for the year end March 1997. Its sales increased by 28.6 per cent to Rs 224.18 crore. This improvement is attributed to change in business strategy to concentrate on offshore projects and increasing the number of franchises for CMC's training division. The company posted an operating profit of Rs 14.11 crore against an operating loss of Rs 3.68 crore in 1995-96. The company achieved a net profit of Rs 3.84 crore as against Rs 12.66 crore in 1995-96. Higher net profit in 1995-96 was due to a one time other income of Rs 24.79 crore in 1995-96 from sale of office space.
SIV Industries
Price on 9/05/97: Rs 28
Price on 16/05/97: Rs 21
This scrip lost 25 per cent in the previous week. This was mainly due to bad financial performance by the company for the year ended March 1997. Its sales declined by 29.32 per cent from Rs 421.34 crore to Rs 297.80 crore. The company registered a gross loss of Rs 10.23 crore against net profit of Rs 84.16 crore. The net loss for the year was R 29.98 crore against net profit of Rs 63.8 crore last year.
SIV Industries performance were affected due to stoppage of pulp paper for 79 days, VSF and rayon plant for 44 days in January and March due to pollution problems. The company's margins were also affected by steep rise in input cost of raw materials and reduced margins on account of adverse market conditions.