ICICI Direct's research report on Indoco Remedies
Indoco manufactures and markets branded formulations and APIs for the domestic and export markets. In domestic formulations, through its nine marketing divisions, the company serves a range of specialties. Domestic formulations accounted for 54% of revenues. Major therapies are: respiratory, anti-infectives, stomatologicals, gastrointestinals and vitamins • Formulation exports accounted for 41% (regulated markets:81%) of revenues while APIs contributed 4% with remaining coming from CRAMS.
We maintain BUY on the back of 1) steady domestic business visibility, 2) strong exports guidance and 3) expected improvement in margins. We value Indoco Remedies at Rs 525 i.e. 18x P/E on FY24E EPS of Rs 29.2.
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