The company is also major beneficiary of recent 25-39 per cent hike in the Vitamin A prices. The company has presence in anti-infective, anti-diabetic, nutritionals, CNS and GI tract. Two of the company's brands rank in the top 250 formulations in India. The company's portfolio is concentrated on anti-infective (anti-bacterial), anti-diabetic, cardiovascular (CVS), vitamins, central nervous system (CNS), gastro-intestinal and NSAIDs. Nicholas Piramal's other brands are Sorbitrate (Isosorbide Dinitrate), vitamins Becozyme, anti-diabetic Euglucon (Glibenclamide) and anti-anginal Ismo (Isosorbide Mononitrate).

The company's strategy is to grow through alliances and acquisitions. The company has a world class manufacturing facility and a strong distribution reach (2000 medical representatives). Analysts feel that in the future, the company's growth will be driven by the new launches in therapeutic segment of cardiovascular, NSAIDs, anti-cancer, anti-anemic and anti-AIDS therapeutic segment.

The company has joint ventures with dozens of pharmaceutical companies both domestic and MNCs, which has helped it to move up the value chain from fine chemicals - pharmaceuticals- over the counter to hospital - research & development. According an analyst with a foriegn brokerage house, ``Joint ventures with more than dozen pharmaceutical companies in different healthcare segments speak of the flexibility and adaptability of the management to different work cultures.''

However, unlike most of the domestic pharmaceutical companies, Nicholas Piramal has no presence in highly profitable overseas market either through bulk drugs or formulations. With the economy reviving, the company could see major jump in its bottomline. The company has reported a jump of 25 per cent in the net profit to Rs 14.1 crore in the second quarter of current fiscal.Nicholas Piramal has made OTC (over the counter) products a major thrust area. Besides 100 per cent fully owned subsidiary Global Home Products, the company has entered into a JV with Reckitt & Coleman, Reckitt Piramal to market OTC products. Reckitt Piramal product portfolio includes Dettol, Disprin, Saridon, Polycrol and Rennie and products such as Gaviscon from Reckitt & Coleman, UK.

Although the company has multiple products but none of its brands are market leaders in their therapeutic segments. Genticyn is the major Gentamycin based brand but has no significant share in antibiotics. Polycrol Forte ranks #4 in antacids. Sorbitrate ranks #2 in anti-anginal cardiac care products after Sun Pharma's Monotrate.

In order to over come this problem, the company has increased its focus on research & development activity with the acquisition of R&D facility of Hoechst Marion. Nicholas Piramal is currently working on 54 formulations comprising of novel drug delivery system (NDDS), chiral synthesis and new chemical entity(NCE). Nicholas Piramal is working on 7 NCEs.

The first one an anti-malarial has already completed ts Phase III of the clinical trail and is filed with Drugs Controller of India. This NCE is expected hit the market in early 2000. This could lead to a rally in the stock. Entry at the current levels could give decent returns for long term investors.