Wednesday, November 3, 2010

VENUS REMEIDES - SHOULD TAKE OFF ANY TIME

Venus Remedies has fallen off its peak and has not gained back even after settling of the FCCB problems. The stock is extremely undervalued trading at just 5 times earning. Venus is into oncology formulations and infectious disease segment whichhas  higher entry barriers than any other segment in the pharmaceutical industry.  On a relative valuation basis, the business is trading at steep discount to the sector average ( P/E =16).  Most of the product in their portfolio are "difficult to make".   The current business itself should be worth 3 times more than the current value.