Tuesday 23 November 2010

NSE/ BSE stock market tips 23rd Novemeber 2010

Stock Name:JHS Svendgaard Laboratories Current Market Price:103 Target:128 Return:25%
Duration:4-6 months
Insight:The main portfolio of the company is to carry out exporting, importing, trading, buying and selling of oral care/hygiene products (includingtoothbrushes and toothpastes). JHS is an oral care products manufacturing company ,manufacturing a wide variety of dental and oral products as contract manufacturer for many of the national and international brand names. Initially the company manufactured only toothbrushes. After realizing the vast potential of the oral care market, the company decided to venture into manufacturing of other dental careproducts like toothpastes, Mouthwash, Denture tablets etc.The company has three production facilities. Two were established in 2003, whereas the third facility has been established in 2007 where the operations began in April 2010. Currently JHS Svendgaard is the largest contract manufacturer of detal care in India & one of the top ten in the world. It is the only listed company in its peer group.In October 2007, as a diversification plan, JHS ventured in uprising Dental care service sector through its wholly owned subsidiary, JHS Svendgaard Dental care Limited. Its state-of-art dental clinics are operated under the brand name of “T 32 Dental Spa”.Currently, this venture has three clinics in Delhi & the company plans to expand its presence further in the NCR region followed by other parts of India. The service provided in the centers spans between the general and restorative dentistry up to hiend cosmetic procedures i.e. A to Z of Dental treatment and oral care.
JHS has a client base of strong & leading players in the Industry.
Proctor & Gamble : JHS manufactures ‘ORAL B’ toothbrushes for P&G.
Pantaloon : Recently launched ‘SACH’ brand for toothpaste & toothbrush.
Dr. Fresh : ‘Dr.Fresh’ is the largest selling oral care brand in America.
Himalaya : Leaders in premium dental cream market.
Dabur : Owns big brands like ‘Promise’, ‘Babool’, ‘Dabur Red’, ‘Meswak’.
Elder Healthcare : Sells mouthwash & other dental care under ‘AMPM’ brand.
Aquawhite : Sells premium category mouthwash & dental whitening gel.
Lavoris : One of the leading oral care brands in America.
Summary:The company is in the early stages of an emerging opportunity. Buoyant trends in the oral-care segment augur well for contract manufacturers, with FMCG players launching new products. For JHS the opportunities are in catering to the rapidly expanding retailers.The company is growing rapidly and this phase will continue for the next 2-3 years.The company has the potential to be one of the largest company in the Indian dental care industry. Those who are looking to invest in stocks from a very long term view, i.e. 3 to 5 years or more.This stock is a must in their portfolio. This stock can give superlative returns in the long run.Its not a play on valuation metrics but a play on potential,robust prospects and great future.Should give multibagger returns in the next 5 years.Short to medium term guys can act accordingly as per the assigned target.