Buy Kopran; target Rs 18: Firstcall Research

Firstcall Research is bullish on Kopran and has recommended buy rating on the stock with a target price of Rs 18 in its February 18, 2013 research report.

"Kopran is an integrated Pharmaceutical Company which manufactures both Active Pharmaceutical Ingredients and Finished Dosage Forms. During the December quarter, Kopran shown the robust growth in the Net Profit and the profit increased by 18.32% to Rs. 22.60 million. During the quarter, Revenue for the company rose 15.87% to Rs.577.50 millions from Rs.498.40 millions, when compared with the prior year period. Kopran has launched new products in the acute segments like Oncology and Penems including the Chronic and CNS groups. Kopran launched new products in the acute segments like Oncology, Penems including the Chronic & CNS groups during FY12. Ratio of Domestic and International sales revenue amounted to the ratio of 27:73. Net Sales & PAT of the company are expected to grow at a CAGR of 11% and 38% over 2011 to 2014E respectively. The company’s net profit jumps to Rs.22.60 millions against Rs.19.10 millions in the corresponding quarter ending of previous year, an increase of 18.32%. Revenue for the quarter rose 15.87% to Rs.577.50 millions from Rs.498.40 millions, when compared with the prior year period. Reported earnings per share of the company stood at Rs.0.58 a share during the quarter, registering 18.32% increase over previous year period. Profit before interest, depreciation and tax is Rs.81.50 millions as against Rs.66.80 millions in the corresponding period of the previous year. At the current market price of Rs.15.50, the stock P/E ratio is at 5.48 x FY13E and 4.28 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.2.83 and Rs.3.62 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 11% and 38% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 1.76 x for FY13E and 1.52 x for FY14E. Price to Book Value of the stock is expected to be at 0.51 x and 0.46 x respectively for FY13E and FY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 18 for Medium to Long term investment," says Firstcall Research report. Quarterly Shifts by Morgan Stanley 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

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