Motilal Oswal - MOSL: Morning India (17/January/18)-1. Laurus Labs (Initiating Coverage): Angling for growth; 2. Fund Folio; 3. Ecoscope; 4. MCX; 5. SH Kelkar; 6. India Life Insurance

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Motilal Oswal

MOSL: Morning India (17/January/18)-1. Laurus Labs (Initiating Coverage): Angling for growth; 2. Fund Folio; 3. Ecoscope; 4. MCX; 5. SH Kelkar; 6. India Life Insurance

MOrning India (17/January/18): 1. Laurus Labs (Initiating Coverage): Angling for growth; 2. Fund Folio; 3. Ecoscope; 4. MCX; 5. SH Kelkar; 6. India Life Insurance

Today’s top research idea

Laurus Labs | Initiating Coverage: Angling for growth; Cost efficient + Strong Chemistry skills + Forward integration

In addition to strong base business of API manufacturing under Antiretrovirals and Hepatitis C category, LAURUS is forward integrating to formulations for regulated markets. With eight ANDAs filed, it is under process to take cumulative filing to 30 over next 2-3 years.
Accordingly, it has built manufacturing facility to drive US sales from INR20m in FY17 to INR1.3b by FY20. It is also forward integrating in ARVs for further improvement in profitability. LAURUS has also leveraged its chemistry skills to drive synthesis/Ingredient business.
On overall basis, we expect LAURUS to deliver 16.7% CAGR in sales to INR30b and 28% CAGR in PAT to INR4b by FY20. We value LAURUS at 18x 12M forward earnings to arrive at price target of INR651 with an upside of 22%. We initiate with a Buy.

Piping hot news

RCom to build $600 million undersea cable network

Reliance Communication (RCom), which is in the middle of a major debt restructuring, on Tuesday said it would construct a 22,000km undersea cable network at an investment of $600 million, a move that would help expand the company’s enterprise segment after it shut down its wireless service, a top company executive said. RCom’s wholly owned unit, Global Cloud XChange (GCX), will build the new ‘Eagle express submarine cable systems’, which would span from Mumbai to Italy in the west and Hong Kong in the east.

17/01/2018 34 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

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MOSL: Morning India (17/January/18)-1. Laurus Labs (Initiating Coverage): Angling for growth; 2. Fund Folio; 3. Ecoscope; 4. MCX; 5. SH Kelkar; 6. India Life Insurance

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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