>BILCARE LIMITED (ANAND RATHI)

■ Investment Theme Innovation driven by R&D is key driver for the growth of all the business segments of this company.The major contributor is and will remain the Pharma packaging solutions, which accounts for 85% of sales

■ Company offers comprehensive range of innovative packaging solutions, consisting of – blister films, aluminumfoils, cold formed blisters and wrap systems.

■ Apart form domestic demand, major growth will come from US markets, where shifting from bottles to Blister packaging will boost demand for its products.

■ Company is ready to tap this potential with required DMF filings and FDA approvals. Another important growth area will be – Global Clinical services business. Here company is offering various services in clinical trials phase to cut costs as well as time period, with its innovative products & services.

■ Company caters to 35‐40 global clients for 60‐70 drugs in various stages of clinical trails and these numbers are likely to grow significantly in coming years. This will be the fastest growing segment with highest margins.

■ Company has developed anti counterfeit solutionsin packaging using non clonable security technology (NST)which can revolutionize the packaging arena,by offering solutions across number of industries to ward of the menace of piracy.

■ Company’s recent US acquisition is earnings accretive and drive the top line and bottom line significantly.

We think stock is highly undervalued and deserves re‐rating. Market is not giving any valuation to this company for its strong R&D capabilities and unique patented technologies. Acquisition led inorganic growth is yet to be discounted. BUY with target of Rs 950/‐ in 12 months.

To read the full report: BILCARE LTD