The kind of growth was not anticipated while splitting the company's operation into two during begining of this year. The split-up into two companies took place with effect from January 1, 2000. The company's pharmaceutical operations relating to bulk drugs and formulations were transferred to Wockhardt Limited. About 65 per cent of the business of former company was transferred to Wockhardt Ltd. The remaining 35 per cent business of the former company came from parentarals, agri-sciences and hospital business. This business was transferred to Workhardt Healthcare Ltd. These two companies have different focus and reap better benefits in their respective companies.

The strategy of splitting-up of the company paid off and in the very first half-year results, the company posted one of the highest growths in the pharma sector.

The company achieved a growth of 90 per cent in operating profits to Rs 45 crore. The operating profit margins improved from 14 percent to 16.6 per cent. Despite higher interest growth of 316 per cent to Rs 11.2 crore, the company managed a 69 per cent growth in net profit. The company's net profit increased from Rs 17.4 crore to Rs 29.4 crore. The company is a leading player in anti-infectives, pain management, cough management and cortico-steroids and these segment contribute around 29 percent, 19 percent, 10 percent and 9 percent respectively to the turnover. The company also has various formulations in psycotropics, cardiac, vitamins and medical nutritions.

The company has recently started production of hepatitis-B vaccins with colloboration with German manufacturers. During the last four months, the company has claimed to have supplied one million doses of this vaccines.

The programme of vaccination is being taken at very large-scale by the government of India and more than Rs 2,800 crore is earmarked for this programme. Therefore, this sum is likely to be distributed between few manufacturers. Smithkline Beechem, Alkem, Cadila, Shanta Biotech, Pancea Biotech, Bharat Serum, VH Bhagat and Intas are the prominant manufactures of this drug. Most of these drugs are being manufactured or marketed from imported supplies of the vaccines.

The company has ambitious programme for multi-dimensional growth. The company has filed 19 DMFs and ANDAs with US Food Drug Administration. The company has also launched six new products in different segments which will further strengthen its performance. Therefore, the company's performance in future seems to be promising.

The equity capital of the company is at Rs 36.3 crore. What the investor needs to count is that the net profit has gone up from Rs 17.4 crore in the comparable six months last year to Rs 29.4 crore in HY ended June 30, 2000. The gain is Rs 12 crore. For the 12 months ended December, 99, the net profit was Rs 55.6 crore. On this basis, the company could end the current year with a net profit of Rs 680 crore. The scrip price has been on the downtrend for sometime now. Even though the latest performance is good, the current market is in a bearish mood. Taking this into consideration, investors could well wait to see where the bottom is. This being a company with a research base, one could consider picking it up at Rs 380.