Buy Novartis India; target Rs 756: Firstcall Research

2455 Investors following Novartis India. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy Novartis India; target Rs 756: Firstcall Research

Firstcall Research is bullish on Novartis India and has recommended buy rating on the stock with a target price of Rs 756 in its December 29, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy Sesa Goa; target Rs 195: Angel Broking Fairwealth Securities` 6 investment ideas for CY2012 Buy United Spirits; target Rs 684: Firstcall Research ALSO READ See previous views by Firstcall Research See what other Experts & Brokerages are saying about Novartis India See messages about Novartis India Novartis India BSE | NSE 01/01/70 Are Mutual Funds betting on Novartis India?

Firstcall Research is bullish on Novartis India and has recommended buy rating on the stock with a target price of Rs 756 in its December 29, 2011 research report.

"Novartis India Limited engages in the discovery, development & marketing of prescription medicine in India and internationally. It operates in four segments: Pharmaceuticals, Generics, OTC, and Animal Health. During the quarter ended, the robust growth of revenue is increased by 9.71% Rs 2150.70 million. Net Sales and PAT of the company are expected to grow at a CAGR of 12% and 17% over 2010 to 2013E respectively. Company earns nearly 68% of revenue from Pharmaceuticals segment only. The company is based in Mumbai, India. Novartis India Ltd. operates as a subsidiary of Novartis AG."

"Novartis India has posted decent standalone earnings for the quarter ended Sept 30, 2011. During the quarter, net profit of Rs 431.80 million for the quarter ended Sept. 30, 2010 as compared to Rs 405.60 million for the quarter ended Sept. 30, 2010, rising 6.46%. Net sales for the quarter are surged by 9.71% to Rs.2150.70 million from Rs.1960.40 million for the same quarter previous year. Total income for the quarter is increased by 10.29% to Rs.2333.70 million same quarter corresponding year. Company's EPS is increased by 22.04% to Rs.13.51 for the quarter ended Sept 30, 2011."

"At the current market price of Rs.669.00, the stock is trading at 12.96 x FY12E and 11.45 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.51.63 and Rs.58.42 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 12% and 17% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 8.55 x for FY12E and 7.59 x for FY13E. Price to Book Value of the stock is expected to be at 2.46 x and 2.03 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 756 for Medium term investment," says Firstcall Research report.

Public holding more than 90% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment