Value pick

JENBURKT PHARMACEUTICALS LTD - BUY

Jenburkt  Pharma (BSE CODE -524731) is promoted by Mr. Hemendra N. Bhuta in 1985 and currently lead by Mr. Uttam N. Bhuta. Company’s  headquarters is in Mumbai and WHO approved  plant is located in Gujarat. Jenburkt is a manufacturer of various category of medicines includes Antibiotics,Anti-diabetics,Anti-inflammatory,Dermatology..etc.Along with this ,company is also making a sugar substitute with the brand name ‘NOCAL’ under the consumer division. Company is growing steadily for the past few years and it is planning to concentrate in high margin products going forward. It also planning to pay much attention to introduce more products under its consumer division. For the full year ended March 2010,company posted a turnover of Rs.52.6 Cr ( Rs.43.7 Cr) and a net profit of Rs.3.8 Cr( Rs.1.6 Cr) .On an equity base of 4.6 Cr  EPS was at Rs.8.13 . In the latest June qtr Company posted an EPS of Rs.2.85 v/s 0.86 .Company also having an uninterrupted dividend paying history for the  last five years .In FY 2010 company paid a dividend of  30 % for FV 10 shares.Promoters are aggressively hiking their stake through open market purchases is also a positive factor. Medium term investors can consider this Pharma company as a value BUY
@ CMP of Rs.85/-