Share News - Maruti Suzuki

This is a subsidiary company of Suzuki Motor Corporation of Japan. Initially the company was formed with Government of India as a major partner under the name Maruti Udyog Ltd. Later the parent company gained major share holder status share holding pattern changed. The company is actively involved in manufacture and sales of Motor vehicles and spares. Maruti Suzuki India Ltd or Maruti as it is widely known remains unchallenged as India's largest passenger car maker. It is enjoying a 50 per cent share of the domestic car market. The product range begins form an entry level car of Alto to more versatile products like Ritz,A-Star, Swift, Wagon R, Estilo, Dzire and Vitara. Besides manufacturing automobiles the company also sells spares parts for its products, pre owned car sales and car financing. The company is also involved in Insurance business largely catering to its own customers.

Production facility

In the year 1983 the company came out with Maruti 800, which truly became the people’s car. In the following year Maruti started their export business. During the course of 1993 and 94 Maruti launched two more models namely Maruti Zen and Maruti Esteem. Both these models were well received by the Indian car lovers. It was in the year 2006 the company launched Swift and the Wagon R models. The following year Swift diesel models were launched. All these cars were timely introduced in the market with specific market segment. While more and more car makers entered the Indian car market Maruti was able to withstand the competition and still retain its position as a leading car maker. To cater to the demand of the Indian market Maruti today has four manufacturing facilities located in India.

The company has an agreement with Adani group to use the Munda port in Gujarat. Through this port Maruti can export 200,000 units per year. It also has a joint venture with Magneti Marelli Powertrain SpA.  Another joint venture that was announced was with Futaba Industrial Co. Ltd.to facilitate the Financing business of the Maruti, an agreement was made with Shreeram City Union finance Ltd. 

According to available data from the company the reported profit after tax is 2392 Cr. The interest expenses has increased to 190 Cr. from that of 55 in the last year. Depreciation stands at 1861 Cr. The EPS is at 78.2.The company has 18,427.9 Cr, as Reserve and Surplus. The Face value of the shares of the company is Rs. 5/- at the time of writing this review the shares of Maruti were trading at Rs.1578

The Dividend history of Maruti has been satisfactory.  It has paid dividends in the past five years from 2009 -70%, 2010 – 120%, 2011 – 150%, 2012 – 150% and 2013 – 160%.  

Among the prominent Mutual funds that hold Maruti are Reliance Equity Fund (166.18Cr.), HDFC Equity Fund (137.96Cr), HDFC Top 200 Fund (105.39Cr.), UTI Opportunities Fund (105.34Cr.)

Investors looking to diversify their investment could consider Maruti adding to their portfolio. Maruti has a good track record and outstanding company in the auto sector.

 

Investment Ideas - Glenmark Pharmaceuticals Limited

Glenmark is currently ranked among the World's top 100 Pharmaceuticals & Biotech companies. Glenmark was incorporated in the year 1977 under the name Glenmark Pharmaceuticals Limited. In the year 1979, the well known Candid Cream was launched catering to the dermatology segment. In the year 1981 it started its exports and soon the sales crossed one Crore. In 1984 a Research and Development facility was set up at its Nasik Plant. Another important formulation Ascoril was launched in the year 1987.

In 1996 the company incorporated – Glenmark Exports Private Limited – a subsidiary purely to look after its overseas business activities. 

The year 2000 was significant for the company. Its Initial Public Offer issue was oversubscribed 65 times. In this year it acquired some brands brand from another Pharmaceutical company Lyka Labs. In the following year the company entered Active Pharmaceutical Ingredient (API) manufacturing business by commissioning it’s a manufacturing facility in Kurkumbh, Maharashtra. The company acquired another manufacturing facility in Gujarat from Glaxo Smith Kline.

The year 2005 was full of events for the company. The company reached agreements with Teijin Pharma of Japan. It also entered into agreement with Napo Pharmaceuticals Inc. for its anti–diarrheal compound Crofelemer. In Argentina the company acquired Servycal S.A. which had exposure in the Oncology segment. Another acquisition made in South Africa namely Bouwer Bartlett Pty. Ltd. It was in this year the company started a new manufacturing facility at Baddi, Himachal Pradesh India

Glenmark is one of the leading Pharma Company in the discovery of new molecules. It has successfully evolved around its researched based products to be where it stands today. It employs over 10,000 people in over 80 countries. Its presence in in branded generic products is well accepted. Its manufacturing activities are spread in four countries with five Research and Development centers. Being a research driven Pharmaceutical Company, the company has made substantial investment in R&D both in India and Overseas. It has a state-of-the-art R&D facility in Oxford, UK for molecules in clinical development. This facility is responsible for Glenmark's development of  both small molecules (NCEs) and biologics (NBEs). Another investment in R&D facility has been made in Switzerland where Glenmark's bio-pharmaceutical research is done The centre is dedicated to the inventing and development of novel monoclonal antibodies (mAbs)

Glenmark has actively followed a strategy of out-licensing its molecules in clinical development to large multinational pharmaceutical organizations. This strategy has proved to be successful and beneficial for the company. In about seven deals struck by the organization in the last nine years amounted to the value of USD 206 mn.

Glenmark’s formulations business revolves around four regions – India, Latin America, Central Eastern Europe and Semi Regulated Markets of Africa/Asia/CIS. 

The formulations business focuses on key therapeutic areas like dermatology, anti-infectives, respiratory, cardiac, diabetes, gynecology, CNS, and oncology. Among the regions India remains the largest market in terms of revenue.

 The company’s Dividend history speaks well about the company itself. It has been consistently paying dividends above 40%. Its current face value is Re. 1/-.  During the year 2008 the share value of the company came down from725 to 120 levels. But since the beginning of the year 2009 the value of the company climbed steadily to reach 608. At the time of writing this note, the company’s shares were trading at Rs. 548. From an investor point of view this company is a safe investment. Pharma shares are regarded as a safe haven during difficult times. This company is not an exceptional. Investments can be made in this company with a long time frame and certainly the decision will be rewarded.