Buy Wockhardt; target of Rs 2268: FinQuest Securities

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26 Aug, 2025 12:21

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FinQuest Securities is bullish on Wockhardt and has recommended buy rating on the stock with a target of Rs 2268 in its February 15, 2013 research report.
 
“WPL earnings surpassed our estimates remarkably. Q3FY13 revenue came in at Rs 14.35 bn, 5 percent higher compared with our estimate of Rs 13.72 bn. The beat came in due better then expected performance in US. Maintenance of market share in its key products like Toprol-XL and ramping-up of market share in the newly launched products helped WPL to outperform. Considering buoyant performance during the quarter, we revise our revenue estimates upwards for FY13 and FY14 by 2 percent and 4 percent respectively. We maintain our strong BUY rating on WPL with maintained target of Rs.2268 valuing it at a P/E multiple of 15x to its FY14EPS.”
 
“EBIDTA came in at Rs 5.45 bn, 17 percent ahead of our estimate of Rs 4.66 bn. WPL EBIDTA margins for Q3FY13 expanded 683bps Y-o-Y and a stable Q-o-Q at 38 percent. The beat was larger due to less then expected price cuts and maintenance of market share in Toprol-XL (15 percent average price cuts post Dr. Reddy entry whereas WPL market share remained stable at plus 20 percent levels). We factor in the management's comments of maintaining EBITDA margins at the current level with a deviation of ~200-300bps and taking in to account the lower price cuts/stable market share of WPL in Toprol-XL( post Dr. Reddy entry) we revise our EBIDTA margins upwards to 37.2 percent for FY13 and 35.5 percent for FY14 from our 34.8 percent and 32 percent respectively. We believe going ahead, WPL's new niche launches such as Lamictal-XR and other strengths of Stalevo will help it to offset the margin decline due to price cuts/market share loss in Toprol-XL/ Comtan (post exclusivity in March).”
 
“We maintain our strong BUY rating on WPL with maintained target of Rs.2,268 valuing it at a P/E multiple of 15x FY14 earnings. We believe investors concerns regarding WPL loosing its market share in its key product Toprol-XL and not able to reduce its dependence on the same has not played out. WPL has received timely approval of the niche products like Lamictal-XR/ Flonase which will support the growth and EBIDTA margins going ahead. We expect the stock to command at least 15x one year forward PE multiple with further scope of re-rating if WPL continues its current outperformance,” says FinQuest Securities research report.

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