Buy Unichem Laboratories; target Rs 203: Firstcall Research

Firstcall Research's report on Unichem Laboratories

"Unichem Laboratories' net profit jumps to Rs. 310.34 million against Rs. 232.37 millions in the corresponding quarter ending of previous year, an increase of 33.55 percent. The company's standalone revenue from operations stood at Rs. 2435.30 million for the quarter ended March 2013 against Rs. 1929.74 million recorded during the corresponding quarter of the previous year reflecting 26.20 percent growth. Reported earnings per share of the company stood at Rs.3.43 a share during the quarter, registering 33.35 percent increase over previous year period. EBITDA is Rs.449.72 millions as against Rs.346.80 millions in the corresponding period of the previous year.

Outlook and Conclusion: At the current market price of Rs.185.00, the stock P/E ratio is at 11.55 x FY14E and 10.21 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.16.39 and Rs.18.56 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 19 percent and 27 percent over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 7.45 x for FY14E and 6.49 x for FY15E. Price to Book Value of the stock is expected to be at 1.84 x and 1.59 x respectively for FY14E and FY15E. We recommend buy in this particular scrip with a target price of Rs 203 for Medium to Long term investment," says Firstcall Research report.

Also Read: Unichem Laboratories fixes book closure for dividend & AGM

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