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PULSE TRACK
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Infrastructure Index up 8.7% for January 2007
STOCK UPDATE
Elder
Pharmaceuticals
Cluster: Apple
Green
Recommendation: Buy
Price target: Rs508
Current
market price: Rs372
Elder strikes it again!
Elder
Pharmaceuticals (Elder) has entered into an in-licencing
alliance with M/s. Laboratorios Farmaceuticos Rovi, S.A.
(Rovi) of Spain to market advanced heparins (anti-thrombotics)
in India for treatment and prevention of thrombo-embolic
venous diseases like deep vein thrombosis and pulmonary
embolism.
VIEWPOINT
Sical
Logistics
Sical to demerge non-core businesses
We attended Sical Logistics' conference call
to discuss the de-merger of its non-core businesses. We
present below the key takeaways from the call.
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Sical Logistics will be de-merging its
non-core businesses, namely the trading (building material),
coffee plantation and vehicle service businesses, into a new
company called Sicagen.
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Sical Logistics is already in the process
of selling its other non-core businesses for a consideration
of Rs100 crore (of which Rs45 crore has already been
realised). After the proposed de-merger and sale, Sical
Logistics will become a core logistic company.
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The de-merger will be a mirror split of
the existing company whereby the equity shareholders will
receive shares in Sicagen in the ratio of 1:1.
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The assets of the new company will range
between Rs300 and Rs350 crore. This will include loans and
advances sanctioned by Sical Logistics to its
subsidiaries.
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The management expects a top line of
Rs270 crore and a profit after tax of Rs3-4 crore for
Sicagen in FY2008.
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Sicagen will be listed on the stock
exchanges after the proposed de-merger.
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