Ankur Drugs, target of Rs 389: Prabhudas Lilladher

Prabhudas Lilladher has maintained its buy rating on Ankur Drugs & Pharma with a price target of Rs 389 in its April 17, 2008 research report. "Ankur Drugs & Pharma’s (ADPL) Q4FY08 results were above our expectations. On consolidated basis, net sales grew by 80% YoY from Rs 1.15 billion to Rs 2.08 billion (we expected Rs 1.86 bilion), mainly due to the new manufacturing facility at Baddi going on-stream during Q3FY08. The company’s EBIDTA margin improved by 170bps from 14.9% to 16.6% YoY (we expected 16.5%), mainly due to decline in material cost. Personnel expenses declined by 40bps from 1.9% to 1.5% of net sales due to high sales growth and high level of automation in the new facility. The company’s net profit grew by 119% YoY from Rs 91 million to Rs 200 million (we expected Rs 161 million). We reiterate BUY rating on the stock with a price target of Rs389 (7x FY10 earnings) over the next 12 months, which is an upside of 61.1% over the current price," says Lilladher's research report.

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