CPD: Production restart by year end

Sun Pharma held their year end analyst conference call today. Although the transcripts will take a few days to be posted online, here is an interesting tidbit related to Caraco from the conference call:

The troubles at the Caraco plant would hopefully get over this year and the unit will start commercial production, the company said in an analyst meet held here on Monday.

So this is 6 months from now. We know that the Sun Pharma management tends to be extremely cautious. My gut feeling is production restart could be much sooner than 6 months. Now even if it takes 6 months, at current prices you are looking at at-least a double in that time period. I don’t understand why the shares dropped off today, but based on the 6 month time period I see CPD having enough cash to make it through without a problem.

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