Master And Student - All About Stock Markets

Cadila Healthcare is targeting revenues of US$1 bn in FY2011E versus revenues of US$620 mn reported in FY2009. CDH is ranked fifth in India by revenue. International generic sales accounted for a third of the company’s FY2009 revenues. The company has a presence in niche consumer segments in India. CDH has invested in NCE research in three segments but benefits from these investments are not yet visible.

Some updates on the Company:

Cadila Healthcare has created multiple platforms to ensure stable growth over the medium term. France,US and Japan are expected to drive revenues in the near term. Despite the Rupee appreciation and higher R&D costs in FY2010-11E, the margins are expected to be stable.

The Indian finished dosage remains the most important segment in valuating the company. This is followed by the US market and consumer/animal healthcare business.Early success in the transdermal and oncology segments can drive the price even higher.

Key risks :

Regulatory risks in the form of price controls by the government are the most important. Other industry risks relate to (1) pricing reforms in Europe, (2) increasing consolidation of the global generics industry, (3) global generics players using India’s manufacturing cost advantage, and (4) continuing volatility of the Indian Rupee against the US Dollar.

The EPS for FY09 is Rs.22 and is expected EPS for FY10 is Rs.33. At current market price of Rs.650, the stock is trading at forward p/e of 19. The stock is worth looking at during sharp declines.

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Markets are less volatile, so why not look back at those people who created huge volatility and mess in the Indian stock markets. Yes, we are talking about biggest scamsters in Indian stock markets. These are the biggest scams that hit the Indian stock markets which created havoc among investors and traders.

Read it, know it and don't forget it !

Ramlinga Raju , Founder, Satyam Computers.
Amount : Rs.8,000 crores.
The fraud: Cooked up account books of his company.
Method: Inflated revenues and hid liabilities.


Harshad Mehta, Broker.
Amount : Rs.4,000 crore.
The fraud: Responsible for the securities scam of 1992.
Method: Accused of diverting funds from banks to the tune of over rs.4,000 crores to stock brokers bewteen 1991-1992.

Ketan Parkekh Promoter, NH securities.
Amount : Rs.1,500 crores.
The fraud: Accused of price rigging.
Method: Used to trade in shares under fictious names.

CR Bhansali, Founder, CRB capital markets.
Amount : Rs.1,200 crores.
The fraud: Cheated public of over 1.000 croroes and the sbi of 57 crores.
Method: Raised money from public and transferred it to non-existent companies.

Dinesh Dalmia former MD, DSQ Software.
Amount : Rs.595 crores.
The fraud: Dalmia resorted to illegal ways of making money.
Method: Dalmia resorted to illegal ways of making money through the shares of DSQ software.

Buyer beware !

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