CMP: 1740

Wockhardt Limited, spun off from Wockhardt Life Sciences Limited, specializes in the production of pharmaceuticals, in both generic and prescription forms. The Company has develop brands in a variety of segments, including anti-infectives, pain & inflammation, cough, psychiatry, medical nutrition, vaccines, active pharmaceutical ingredients and bio-technology.

Wockhardt is not a safe bet, and is not consistent with profits. But, it has the potentials to surprise positively. Like this quarter (Q2 FY13), it has surprised with profit surge over three-fold to Rs 454 Crores. It runs at a debt of 964 Crores with 73 Crores cash in hand. Revenues have risen from 1504 Crores to 2560 Crores in the last 5 years. It has turned around from losses of 348 Crores to profits of 184 Crores in the last 5 years. Buy with minimal exposure and hold for long term gains.