Nicholas Piramal to sell of Deonar plant - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Nicholas Piramal to sell of Deonar plant

Feb 16, 2000

Nicholas Piramal (NPIL) is planning to sell its Deonar facility. The company plans to offer a Voluntary Retirement Scheme to its existing staff of around 180 people. NPIL was formed by the triple merger with Sumitra Pharmaceuticals, Piramal Healthcare Boehringer Mannheim apart from the business of Roche earlier. The key therapeutic areas that the company focuses include antibiotics, cardiovasculars, nutritionals and central nervous system drugs.

The proposed sale of the Deonar facility is in line with the company’s continuous efforts to restructure its operations and bring about more efficiency in its functioning. The facility manufactures ointments and vitamins that are anyway being manufactured at the company’s other facilities.

Since Deonar is within Mumbai itself the company can hope to get a good price for its real estate and deploy the money towards partly paying of the VRS of its workers and using the balance cash for shoring its pharmaceutical business.

It would also reduce the cost of operations for the company since Mumbai is one of the costliest places to run a manufacturing operation.

However the sale of Deonar facility would only be one of the number of moves to restructure the company. The others include the sale of the bulk drug unit and the sale of the stake in Gujarat Glass.

Market View:
The company has been rated as a 'buy' by most analysts primarily due to the company’s restructuring where both the bulk drugs as well the non-pharma activities would be hived off, the management’s proactive approach in forming co-marketing alliances with multinationals and the expected dilution of price control which would bring down the share of revenues from products under price control for NPIL to less than 42%.

Equitymaster requests your view! Post a comment on "Nicholas Piramal to sell of Deonar plant". Click here!


More Views on News

PIRAMAL ENTERPRISES Announces Quarterly Results (1QFY21); Net Profit Up 22.1% (Quarterly Result Update)

Aug 25, 2020 | Updated on Aug 25, 2020

For the quarter ended June 2020, PIRAMAL ENTERPRISES has posted a net profit of Rs 5 bn (up 22.1% YoY). Sales on the other hand came in at Rs 29 bn (down 16.2% YoY). Read on for a complete analysis of PIRAMAL ENTERPRISES's quarterly results.

PIRAMAL ENTERPRISES Announces Quarterly Results (3QFY20); Net Profit Up 11.7% (Quarterly Result Update)

Feb 5, 2020 | Updated on Feb 5, 2020

For the quarter ended December 2019, PIRAMAL ENTERPRISES has posted a net profit of Rs 6 bn (up 11.7% YoY). Sales on the other hand came in at Rs 38 bn (up 9.1% YoY). Read on for a complete analysis of PIRAMAL ENTERPRISES's quarterly results.

PIRAMAL ENTERPRISES 2018-19 Annual Report Analysis (Annual Result Update)

Jul 9, 2019 | Updated on Jul 9, 2019

Here's an analysis of the annual report of PIRAMAL ENTERPRISES for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of PIRAMAL ENTERPRISES. Also includes updates on the valuation of PIRAMAL ENTERPRISES.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

How Much Money Do You Need to Be a Professional Trader? (Fast Profits Daily)

Sep 17, 2020

In this video I'll answer a question I get asked often: How much capital do I really need to trade the markets for a living? Let's find out...


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Sep 25, 2020 (Close)


  • Track your investment in PIRAMAL ENTERPRISES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks