Pfizer has target of Rs 998: Kapadia

Published on Mon, Nov 16, 2009 at 15:47 |  Source : CNBC-TV18

Updated at Mon, Nov 16, 2009 at 17:09  

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Ranjit Kapadia, HDFC Securities

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Pfizer has target of Rs 998, says Ranjit Kapadia of HDFC Securities.

Kapadia told CNBC-TV18, "Pfizer and Wyeth are very strong in the domestic market in their respective segments. Pfizer is strong in our vitamin segment and cough syrup segment whereas Wyeth is strong in women's healthcare and the vaccine segment. So the products are complementary, there is no major overlaps of the products. The topline growth is in the range of 15% for Pfizer and 18% for Wyeth. So the topline growth of the merge company will be in the range of 17-18%. Coming to the margins, the current margin of Pfizer is in the range of 25%, Wyeth margins are 33-34%. So the blended margin will be in the range of 27-28% and both the companies are cash rich. If there is lot of cash, there will do restructuring. The margins are expected to improve further to 29-30% with the restructuring and the bottomline growth will be much better because of the strong topline growth and the margin improvement. We have target price for Pfizer of Rs 998."

  

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