
Buy:150 - 200 price range
Target: 350 - 400
Estimated Time: 2 years
About Lyka Labs Limited
Lyka Labs Limited is committed to creating a better tomorrow. Lyka believes in Innovation. It provides state-of-the-art prepositions to advance the company’s relevance and foster a spirit of experimentation. Pharmaceutical products of Lyka are consistent in term of quality and reliability. During past a few decades, LYKA has mastered and manufactured wide range of Pharmaceutical Formulations at a WHO - GMP certified and ISO 9001- certified manufacturing facility.
Products
Lyka is engaged in providing bulk formulations manufacturing services to various large pharmaceutical companies. In this case, all raw materials and packaging materials are provided by client, and Lyka functions as a contracted manufacturer.
Clientele


Making of a big Turnaround Story
In 2021 the revenues has picked up and in three quarters posted a healthy balance sheet, the revenues are expected to be double of last year after March 22 quarter results.

In 2021 the revenues has picked up by 143% in June quarter and again more by 50% in September quarter.

The profits also soared proportionally by 8443% in June 21 compared with last quarter and again rose by 52% in next quarters, achieving highest ever profits in the company history.

Imp Update: The board of Ipca Laboratories Ltd has approved the purchase of a 26.57 percent stake in Lyka Labs Ltd for Rs 97.89 crore and will enter into an agreement with the founders of the latter for joint management control, according to a stock exchange filing in Nov - 2021.
Signs of Turnaround

The signs of turnaround in the business is evident as promoter holdings are increasing and shares pledged has decreased in last one year.
While debt to equity has also fallen tremendously in the last two years as shown below.

Technical Analysis
The stock price has increased multi-folds in last one and half years. It has increased by massive 1800% in last years from just 10 to 200 levels. But it seems of a small picture of the big and massive bull run that can unfold in coming years.
The stock touched a high of 258 levels in 2021 and fell down to 135 levels where it consolidated and moved to current level of 190. Seeing some drastic changes in fundamentals happening in last one year the stock will continue its upward journey in the future as business prospects are really bright. Hence buy it on dips and is in the accumulation zone.


Buy:150 - 200 price range
Target: 350 - 400
Estimated Time: 2 years
*Disclaimer- The above-mentioned article is just for educational and research purposes. I am neither a SEBI registered advisor or broker nor have any financial relations with Action Construction Equipment Limited. This is not a financial or equity recommendation.
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