I have written about Surya Pharmaceuticals before. You can read that here and here. The third quarter results for Surya Pharma has been declared and it is on track.
The topline is flat and the quarterly EPS is maintained around Rs8.27. There is an improvement on the operating margins by more than 120 basis points and by 50 basis points on the net profit level. The net profit is not reflected the higher operating margins because of higher depreciation and interest cost. The company has gone for expansion and I think it has not started generating revenues. We also need to look if there has been pricing pressures as well.
The trailing twelve months EPS is Rs29.10 and today it has closed at Rs115. The stock is currently quoting at PE of 3.95 and looks very attractive. I continue to hold the stock and I am planning to buy more around Rs100.
Disclaimer: Pls check independently before you buy or sell stocks. This is not an invitation to buy or sell stocks.
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