Updates On Ajanta Pharma, Granules India, Manjushree Technopack And Dynemic Products

1) Ajanta Pharma: 

The dream run in the counter continues, and since last 2 years, the stock has stopped surprising on the upside. It seems like we should stopped discussing any targets on the counter, and keep on enjoying the flow. The stock may seem expensive to few now, but that is because of positive speculations about the future of the company. Very less dependency on US markets, high margins for a growing company, very low debt, and promoters releasing pledged shares, are some of the reasons for its continuing upside journey in recent times. The company seems to be achieving the stability in net profit margins around 20%, in coming years, which would very good. With 2 new plants getting operation this year, we may further see similar sales growth going ahead also.
Long term investors can still continue to hold.

2) Granules India:

The stock is getting a severe re-rating on the upside, which was due anytime, since the initiation of their capacity expansion. The results for FY14 were spectacular, and we might continue to see their out-performance, in coming 2-3 years also. To add fuel to fire, as far as stock price is concerned, the company successfully completed the US FDA inspection for their paracetamol facility, recently. Also, there has been lots of shares getting released from pledge by promoters, and some buying from open market off-late.
The stock has now started trading around 13-14 P/E based on FY14 earnings, which is still less, compared to its peers. But as per management, they continue to expect good growth in net profit (even better than sales), because of better utilization, good operational efficiency and increasing focus on sales of finished dosages. That should further improve their margins.
Expecting company to end FY15, with an EPS of close to 50.
Recommending a hold / buy on dips strategy on the counter.

3) Manjushree Technopack:

The stock has achieved the recommended target of 300, given here:
http://fundamentalstockideas.blogspot.in/2014/03/manjushree-technopack-packing-fmcg-food.html
But the company has very good presence in its field, and it may continue to improve on sales front.
Their major clients are working on a model, where the client provides the required raw material, and Manjushree has to bear the manufacturing expense only, which will reduce the dependency on raw material. Hence margins will improve, and they should be able to post good profits, with increasing number of such clients.
Last week, promoters bought almost 50k shares from open market in a day or two.
Still recommending a hold on the counter.

4) Dynemic Products:

Some unexpected announcements made by the company, assisted the violent movements on the counter for few days, but that seems to have taken a halt now. From past few days, company has moved well in upward direction, which was led by some of the institutional buying in good quantities. The stock continues to look cheaper, with P/E ratio of 5.5, even after such move, but with companies having market cap below 100 Cr, you never know, when your reward will be coming.
The best approach is to hold keeping our eyes open on every news flow surrounding the company.
For now, it looks like a buy / hold stock, even after 75% appreciation from recommended price here:
http://fundamentalstockideas.blogspot.in/2014/03/dynemic-products-name-behind-colors-of.html

Note: 
The recommendations are based on looking at company's future, and their long term prospects. As I have repeatedly said, its never a bad idea, to keep booking profits when company is moving up, so as to keep our portfolio balanced.

Happy investing!!!!