Buy Aventis Pharma; target of Rs 2023: Firstcall Research

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Buy Aventis Pharma; target of Rs 2023: Firstcall Research

Firstcall Research is bullish on Aventis Pharma and has recommended buy rating on the stock with a target of Rs 2023 in its October 30, 2010 research report.

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Firstcall Research is bullish on Aventis Pharma and has recommended buy rating on the stock with a target of Rs 2023 in its October 30, 2010 research report.

"Sanofi-aventis, one of the world's leading pharmaceutical companies, and its 100% subsidiary, Hoechst GmbH, are the major shareholders of Aventis Pharma Limited and together hold 50.12% of its paid-up share capital. The company exports to countries like Russia, Sri Lanka, U.K and Egypt amongst others. Hoechst GmbH, a 100% subsidiary of Sanofi-aventis SA, has decided to acquire additional 10.27% stake in Aventis Pharma. Apollo Hospitals in partnership with Aventis Pharma Limited (Group sanofiaventis) have launched the second 'Fun Center' for all children admitted at the Apollo Children's Hospital in Chennai. The Board of Directors had declared an Interim Dividend of Rs 4 per Equity share of Rs 10 for the year ending December 31, 2010. Net Sales of the company is expected to grow at a CAGR of 7% over 2008 to 2011,"

"At the market price of Rs 1806.00, the stock is trading at 23.86 x and 21.85 x for CY10E and CY11E respectively. On the basis of EV/EBDITA, the stock trades at 15.00 x for CY10E and 13.71 x for CY11E. Price to book value of the company is expected to be at 3.82 x for CY10E and 3.25 x for CY11E respectively. EPS of the company is expected to be at Rs 75.68 and Rs 82.64 for the earnings of CY10E and CY11E respectively. The Board of Directors had declared an Interim Dividend of Rs. 4 per Equity share of Rs 10 for the year ending December 31, 2010. The company's net sales and net profit are expected to grow at a CAGR of 7% and 5% over CY08 to CY11E. We recommend 'BUY' in this particular scrip with a target price of Rs 2023 for medium to long term investment," says Firstcall Research report.

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To read the full report click on the attachment