Buy Pfizer; target of Rs 1339: Firstcall Research

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Buy Pfizer; target of Rs 1339: Firstcall Research

Firstcall Research is bullish on Pfizer and has recommended buy rating on the stock with a target of Rs 1339 in its December 7, 2011 research report.

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Firstcall Research is bullish on Pfizer and has recommended buy rating on the stock with a target of Rs 1339 in its December 7, 2011 research report.

"Pfizer came to India in 1950 through a company named Dumex. Its first production unit was set up at Darukhanna in Mumbai. It manufactured products like Protinex, Isonex, Becosules and Corex. Pfizer Limited (India) has a turnover of US$ 159.52 million (November 2009). In 1965 Pfizer entered into a licence agreement with Pfizer Corporation for the use of Pfizer's processes, technical know-how, etc to manufacture its existing products. Later in the year 1992, Dumex was amalgamated with Pfizer."

"One of the highest spenders in pharmaceutical R&D globally, Pfizer has made clinical research investments of US$ 6.05 million (November 2009) in India. In the year 1960, the company set up one more plant at Thane, near Mumbai for manufacturing and conducting product research. The company's manufacturing plant was ISO 14001 certified for its Environment Management System awarded by DNV Certification B.V, Netherlands. Two of Pfizer India's brands- Corex (Cough Formulation) and Becosules (Multivitamin)- continue to rank among the Top 10 pharmaceutical drug brands. Pfizer has disclosed a marginal rise in standalone net profit for the quarter ended Sep 2011. During the quarter, the profit of the company surged 10.62% to Rs.469.90 million from Rs.424.80 million in the same quarter previous year. Net sales for the quarter for the quarter rose 22.45% to Rs.2898.40 million, while total income for the quarter rose 23.53% to Rs.3120.40 million, when compared with the prior year period. It reported earnings of Rs 15.75 a share during the quarter, registering 10.62% increased over previous year period."

"At the current market price of Rs.1185.00, the stock is trading at 17.06 x FY12E and 14.67 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.69.46 and Rs.80.80 respectively. On the basis of EV/EBITDA, the stock trades at 11.01 x for FY12E and 9.50 x for FY13E. Price to Book Value of the stock is expected to be at 2.58 x and 2.19 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 1339 for medium to long term investment," says Firstcall Research report.

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To read the full report click on the attachment