E. Merck: The vitamin king consolidates - Views on News from Equitymaster

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

  • MyStocks

MEMBER'S LOGINX

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

E. Merck: The vitamin king consolidates

Sep 30, 2000

E. Merck is the market leader in vitamins and derives over 60% of its turnover from this segment. Three of its vitamin brands Evion, Neurobion and Polybion contribute almost 45% of the company’s turnover. All three however are under price control and are likely to remain that way for some time to come. Over the last couple of years the company has made a mark in non–vitamin areas such as cardiology, topical anti–inflammatory and dermatologicals. During the last year it introduced Emadine and Emadine AT for controlling hypertension, Maxepa, a nutrition related cardiac drug, Cadvion for vascular metabolic function, Exflam gel an anti–inflammatory cream, Candistat capsules, a modern antibacterial, Harpoon tablets, a quinoline antibiotic, and Evion skin cream.

These products are likely to lead the company’s profitability in the future though the vitamin segment remains a major contributory factor to the turnover. E. Merck’s parent had also planned a tie–up with Seven Seas, which would have given the company another valuable OTC (over the counter) brand. However, this tie–up did not materialise.

Besides, E. Merck also has a non–pharma division comprising reagents, kits, pigments and paper rolls which accounts for almost 10% of its turnover. This has also witnessed new product introductions in the last two years. Manufacturing and marketing of vitamin/mineral premixes for food industry, addition of products for filtration, electronic balances, water purification systems, testing equipment for food and gas industry and substantial expansion of product range of laboratory reagents are some of the new introductions in the non-pharma division.

E Merck has been improving its financials, doubling its post tax profits in the first half of the current year. This was primarily due to an upward price revision in its vitamin brand Neurobion in June 2000. A part of the reason for this growth is that the company had written off VRS expenditure paid to the workers last year when it closed its chemical unit located at Taloja. (The write off of this had depressed the earnings last year.) Besides, the company also repaid a part of its borrowings last year and the reduction in interest cost has also contributed to the surge in the bottomline.

The stock quotes at Rs 349 which implies an earnings multiple of 16.6 times of FY01 estimates.

Equitymaster requests your view! Post a comment on "E. Merck: The vitamin king consolidates ". Click here!

  

More Views on News

5 Stocks to Watch Out for Amid the Omicron Outbreak (Views On News)

Dec 3, 2021

As the new variant of Covid-19 emerges, keep an eye on these stocks.

This Stock Just Made a Historical Debut on the Exchanges (Views On News)

Nov 15, 2021

Shares of the company listed at premium of 253% from its IPO price, the highest ever.

3 Indian Pharma Companies that are Investing Big Time for the Future (Views On News)

Nov 9, 2021

In 2021, R&D of pharma companies roared to life in a never-before-seen way.

Demerger of Financial & Pharma Businesses puts Piramal Enterprises in Limelight (Views On News)

Oct 8, 2021

The company's shareholders will be issued 4 shares in the demerged entity for every 1 held in Piramal Enterprises.

Block Deal Disappoints Max Healthcare Shareholders. Stock Falls 6% (Views On News)

Sep 30, 2021

The divestment of 6.6% stake by the promoter is considered to be one of the largest block deals of the market.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

6 Penny Stocks that Rallied 1,000%+ in One Year (Views On News)

Dec 6, 2021

These penny stocks shed their penny status by surging 1,000% or more in the last one year.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

PROCTER & GAMBLE HEALTH SHARE PRICE


Dec 9, 2021 (Close)

TRACK PROCTER & GAMBLE HEALTH

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

MORE ON PROCTER & GAMBLE HEALTH

PROCTER & GAMBLE HEALTH 5-YR ANALYSIS

COMPARE PROCTER & GAMBLE HEALTH WITH

MARKET STATS