Emkay Global Financial Services has recommended hold rating on Panacea Biotec with a target of Rs 209 in its July 21, 2010 research report.
"Panacea Biotec has reported robust revenue growth of 43% largely driven by strong traction in Easy five (Rs 880 million vs. Rs 187 million in Q1FY10) and BOPV vaccine (Rs 350 million) which resulted 46% growth in vaccine business and commencement of supply of organ transplant products in Lat Am countries which resulted in 406% growth in export pharma formulation segment. Domestic pharma business for the quarter grew by 14%. The supply of Easy five to UNICEF under new contract began from Jan'10 onwards and company has a long term contract worth USD 222 million to be executed till Dec'2012. Lower tax provision (8% vs. est. of 25%) and lower interest cost (Rs 88 million vs. Rs 98 million) has resulted an EPS of Rs 5.1 (up 160% YoY). We maintain our earning estimates of Rs 17.1/ Rs 22.8 for FY11E/ FY12E and retain hold rating with a target of Rs 209," says Emkay Global Financial Services research report.
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