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Last Updated : Dec 10, 2012 12:57 PM IST | Source: Moneycontrol.com

Buy Pfizer; target of Rs 1300: Firstcall Research

Firstcall Research is bullish on Pfizer and has recommended buy rating on the stock with a target of Rs 1300 in its December 07, 2012 research report.

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Firstcall Research is bullish on Pfizer and has recommended buy rating on the stock with a target of Rs 1300 in its December 07, 2012 research report.
“Pfizer came to India in 1950 through a company named Dumex. Its first production unit was set up at Darukhanna in Mumbai. It manufactured products like Protinex, Isonex, Becosules and Corex. Pfizer Limited (India) has a turnover of US$ 159.52 million. In 1965 Pfizer entered into a license agreement with Pfizer Corporation for the use of Pfizer’s processes, technical know-how, etc to manufacture its existing products. Later in the year 1992, Dumex was amalgamated with Pfizer. One of the highest spenders in pharmaceutical R&D globally, Pfizer has made clinical research investments of US$ 6.05 million (November 2009) in India. In the year 1960, the company set up one more plant at Thane, near Mumbai for manufacturing and conducting product research.”
“The company’s manufacturing plant was ISO 14001 certified for its Environment Management System awarded by DNV Certification B.V, Netherlands. Two of Pfizer India's brands -- Corex (Cough Formulation) and Becosules (Multivitamin) -- continue to rank among the Top 10 pharmaceutical drug brands. The excellent Environment, Health and Safety standards of the Company have earned Pfizer India recognition in the form of ISO 14001:2004 and OHSAS 18001:2007. The ISO 14001 certification reiterates the Company’s focus on Environment, Health and Safety.”
“Pfizer Ltd is provides prescription medicines for humans and animals in India & internationally, reported its financial results for the quarter ended 30th Sep, 2012. The company’s net profit jumps to Rs.522.80 million against Rs.469.90 million in the corresponding quarter ending of previous year, an increase of 11.26%. Net sales of the company stood at Rs 2686.40 millions during the second quarter ended September 30, 2012. The company results for the quarter were not comparable to the same period of previous fiscal due to the sale of company's animal health business. Reported earnings per share of the company stood at Rs.17.52 a share during the quarter, registering 11.26% increase over previous year period. Profit before interest, depreciation and tax is Rs.805.80 millions as against Rs.738.30 millions in the corresponding period of the previous year.”
“At the current market price of Rs 1150, the stock P/E ratio is at 15.10 x FY13E and 13.70 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.76.14 and Rs.83.95 respectively. On the basis of EV/EBITDA, the stock trades at 6.71 x for FY13E and 5.57 x for FY14E. Price to Book Value of the stock is expected to be at 2.24 x and 1.93 x respectively for FY13E and FY14E. We expect that the company surplus scenario is likely to continue for the next years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 1300 for medium to long term investment,” says Firstcall Research report.

Public holding more than 90% in Indian cos

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To read the full report click on the attachment

First Published on Dec 10, 2012 12:43 pm