IS DR LAL Path labs Worth Investing?

If listed DR LAL PATH LABS will be the only pure play listed Diagnostics business in india. The price band is RS 540-550.
                                 The good thing is that they are giving RS 15  Discount to retail investors.One more positive thing is that the promoters are not selling anything from their holding.It is the Private equity investors who bought earlier are now selling to cash out.

The company had grown from 342 crores revenue in 2012 to 660 crores in 2015 that is a CAGR of 29% on sales.It is a healthy growth and given indias population of 120 Crores.The companies  profit also grew  from 45 crores to 95 crores.

• One more good thing is that the company is not having any debt.And it is infact having cash worth some 235 crores at the end of FY 2015.
• As per the records given Company generates cash of 80-90 crores per year and capex which it spends is 30-40 crores.So net net there will be some cash flowing into the balance sheet every year.

The company is priced at 46-47 times Price to Earnings and it seems a bit stretched.But there is no player available in that space to check the valuations in the listed space.

The companies financials are mentioned below for reference.

So overall the company is a bit expensive but i guess there is at least 10-15 % upside left because of the brand and also because of no leverage and free cash flow.

References:

http://economictimes.indiatimes.com/markets/ipos/fpos/is-pathlabs-ipo-worth-a-look-heres-what-the-brokerages-say/articleshow/50071485.cms

http://economictimes.indiatimes.com/markets/stocks/news/5-good-reasons-to-go-for-dr-lal-pathlabs-ipo/articleshow/50023024.cms

IS Alkem Laboratories Worth Investing?

                                                            Alkem Laboratories is the fifth largest pharma company in the country and it generates 75 of the revenue from the domestic sales.But in general all the pharma companies generate most of the income by exporting to other countries.This company generates 25% of sales from international market.

                                        

                                                                   In the price band of RS 1020 to 1050 the issue is priced at 25-26 times price to earnings compared for FY 2015 which is at a discount to the listed peers like CADILA,LUPIN and TORRENT which are trading at premium valuation.See the charts below for the Lupins PE as an example.

When compared to Lupin the IPO is trading at a discount so there is a scope for upside.

The financial results of Alkem  laboratories is mentioned below for your reference.

So overall the companies is growing very well and there is some thing on the table for the retail investors to get if they subscribe for the ipo.

The below Links or reviews on the IPO might be helpful to know more details about the company.

http://www.simpleinterest.in/alkem-laboratories-ipo-review-recommendation/

http://www.chittorgarh.com/ipo_review/alkem_laboratories_ipo/2268/

https://www.sptulsian.com/article/86560/alkem-laboratories