Brokerage house Firstcall Research is bullish on Makers Laboratories and has recommended buy rating on the stock with a target price of Rs 103 in its research report dated August 10, 2015.
Firstcall Research's report on Makers Laboratories
"Makers Laboratories Limited is a rapidly growing Indian Pharmaceutical company with a strong thrust on Branded Generics, has reported its financial results for the quarter ended 30th June, 2015. The company has achieved a turnover of Rs. 174.07 million for the 1st quarter of the current year 2015-16 as against Rs. 169.41 million in the corresponding quarter of the previous year. EBITDA of Rs. 24.04 million in Q1 FY16, an increase of 83.37% against the corresponding period of last year. In Q1 FY16, net profit of Rs. 13.16 million against Rs. 5.59 million in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 2.68 for the 1st quarter as against an EPS of Rs. 1.14 in the corresponding quarter of the previous year."
OUTLOOK AND CONCLUSION
At the current market price of Rs. 89.85, the stock P/E ratio is at 16.52 x FY16E and 15.06 x FY17E respectively.
Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs.5.44 and Rs.5.96 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 6% and 5% over 2014 to 2017E respectively.
On the basis of EV/EBITDA, the stock trades at 7.62 x for FY16E and 7.06 x for FY17E.
Price to Book Value of the stock is expected to be at 1.62 x and 1.46 x for FY16E and FY17E respectively.
"We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 103 for Medium to Long term investment", says Firstcall Research Report.
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