Buy Unichem Laboratories; target Rs 176: Firstcall Research
Brokerage house Firstcall Research is bullish on Unichem Laboratories and has recommended buy rating on the stock with a target price of Rs 176 in its September 24, 2013 research report.
October 01, 2013 / 14:13 IST
Firstcall Research report on Unichem Laboratories
"Unichem Laboratories has reported revenue of Rs. 2655.79 mn, against Rs. 2648.61 mn in the corresponding quarter of previous year recording a marginal increase. On sequential quarter revenue grew by 9.1 percent. Domestic Branded Formulations grew by 4.2 percent to 1756.02 mn from 1648.88 mn in corresponding quarter of the previous year, while on sequential quarter it grew by 23.5 percent. The International Formulation Business degrew by 14.2 percent to 562.94 mn as against 656.20 mn in corresponding quarter of the previous year. API business revenue stood at Rs. 303.1 mn for the quarter ended June, 2013 against Rs. 292.9 mn in Q1 FY13, reflecting a growth of 3.8 percent. In Q1 FY14, the company's EBIDTA margins stood at 19.1 percent compared 18.0 percent in the corresponding quarter of the previous year. On sequential quarter EBITDA margins improved by 1.9 percent. Profit before tax for the quarter ended June 30, 2013 stood at Rs. 471.69 mn (corresponding quarter previous year: Rs.455.22 mn) and consequently the net profit for the quarter stood at Rs. 360.99 mn (corresponding quarter previous year: Rs. 331.42 mn). On sequential quarter Profit before tax grew by 35.7 percent and Net profit by 16.3 percent. The EPS-Diluted for the current quarter stood at Rs.3.99.""Unichem has wholly-owned subsidiaries in UK, USA, Brazil, South Africa and Ireland and it continues to focus on high value added generics. We expect the company to post a CAGR of 14 percent and 25 percent in its top-line and bottomline over 2012-2015E respectively. Hence, we recommend 'BUY' for 'Unichem Laboratories Ltd' with a target price of Rs 176 on the stock," says Firstcall Research report.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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