KR Choksey is bullish on Vivimed Labs Ltd has recommended buy rating on the stock with a target price of Rs 134 in its research report dated March 05, 2018.
KR Choksey's research report on Vivimed Labs Ltd
Vivimed Labs Limited (VIVIMEDLAB), is an integrated pharma player having a strong presence across the value chain by leveraging its proven expertise in the realm of chemistry. It has a wide portfolio in API, Branded generics and is a a world leader in the development of innovative photochromic dyes. The Company has 11 manufacturing plants (eight domestic and three overseas) across three continents. The pharmaceutical segment contributes 72% to the total sales while the remaining 28% is contributed by the speciality chemical segment.
OutlookWe value the Company at a P/E multiple of 5x on FY20E and arrive at a target price of INR 134/share resulting into an upside of 76% from the CMP of INR 76/share with valuations subject to re-rating depending upon regulatory hurdles and improvement in operating efficiencies. We assign a “BUY” rating on the stock.
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