Chemox Laboratories:

The company's sales turnover rose 23 per cent to Rs 54.73 crore, and net profit grew by 8 per cent to Rs 5.53 crore in the year to March 1996. It was hit by a severe liquidity crunch and had to borrow heavily at high rates of interest for the on-going expansion programme. During the year, the company issued non-convertible debentures worth Rs 5 crore at a coupon rate of 18.50 per cent. It availed of a corporate loan of Rs 3 crore from Industrial Reconstruction Bank of India and a foreign currency loan of $1 million (Rs 3.37 crore) from IDBI. The total borrowings during the year increased to Rs 24.07 crore from Rs 10.43 crore, which is reflected in the high interest burden for the year to Rs 4.42 crore (Rs 1.81 crore). During the year, the company launched various formulation products. It witnessed a good demand for generics as well as branded products.

 

Market price: Rs 19.00; EPS: Rs 11.38; P/E: 1.67