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Vikram Thermo


Vikram Thermo operates in the pharmaceutical industry and manufactures excipients i.e. inactive drug coating.

The company owns the relatively popular ‘DrugCoat’ brand and has a reasonably prominent customer base.

The company has reported consistent growth in revenues and profits over the last five years – reporting about 6cr of operating profits on about 30cr of revenues in the last twelve months.  It employed minimal debt in financing its operations.

The company did report negative reserves about a decade ago as a result of accumulated losses.  This is largely irrelevant to the business as of today but may be a factor for consideration in case there appear to be indications of aggressive financial policies (e.g. taking on greater debt financing for expansions etc.), which isn’t the case at present.

It is exposed to a lot of competition in the generics field (although somewhat mitigated by its brand).  It is also subject to the risk of crude oil price increases since petrochemicals form a major proportion of input cost.  It is also exposed to the risk of a strengthening INR since it is a net exporter. 
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