Buy Indoco Remedies; target of Rs 430: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Indoco Remedies has recommended buy rating on the stock with a target price of Rs 430 in its research report dated May 17, 2022.

Broker Research

May 19, 2022 / 12:18 IST

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E. Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Indoco Remedies

Indoco Remedies’ (INDR) reported robust performance in a regulated market; management expects to maintain its growth momentum given strong order book and new launches. Domestic market performed well on low base in therapies like anti-infective, Cardiac and Respiratory along with higher prescriptions. We remain structurally positive on INDR on account of 1) MR productivity enhancement and higher penetration in North and East markets 2) new launches in US and 3) higher tender business in EU market. Our FY23E and FY24E EPS stands reduced by 9% and 6% as we factor in lower margins.

Outlook

Given recent correction in stock price and current valuations of 14.8x P/E on FY24E are attractive, we upgrade stock to ‘Buy’ from Accumulate with TP of Rs430 based on 18x FY24E earnings.

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