[August 17, 2006]

[ViJiT]

Bharat Heavy Electricals
Cluster: Apple Green
Recommendation: Buy
Price target: Rs2,650
Current market price: Rs2,180

Another order in the bag

India's largest power equipment company, Bharat Heavy Electricals Ltd (BHEL) has bagged an order worth Rs1,224 crore from Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd for the setting up of a thermal power plant in the state. The order entails the setting up of a 500-megawatt (MW) power plant, with two units of 250MW each (units 5 and 6) at Parichha TPS Extension, Uttar Pradesh. The project would be commissioned by 2009-10. Under the secured order BHEL would manufacture, supply, test and commission the main plant package along with its associated auxiliaries and civil works.

Orchid Chemicals & Pharmaceuticals
Cluster: Emerging Star
Recommendation: Buy
Price target: Rs390
Current market price: Rs205

Received approval for Cefotaxime

Key points

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Orchid Chemicals & Pharmaceuticals Ltd (Orchid) has received the US Food and Drug Administration's (USFDA) approval for three of its abbreviated new drug applications (ANDAs) for Cefotaxime for injections in various dosage forms.
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The market size for this product is estimated at US$30-35 million. Orchid would be launching this product in the USA through its exclusive distribution partner, Apotex. Though a mature off-patent product, Cefotaxime has limited competition with only three competitors, which may help Orchid garner a decent revenue stream from this product.