Webinar :Register now for webinar on 'Trade BankNifty in just 15 minutes a day'
Last Updated : Feb 26, 2019 05:10 PM IST | Source: Moneycontrol.com

Hold Indoco Remedies; target of Rs 195: ICICI Direct

ICICI Direct recommended hold rating on Indoco Remedies with a target price of Rs 195 in its research report dated January 31, 2019.

Broker Research
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Indoco Remedies

Q3FY19 numbers were higher than I-direct estimates on all fronts mainly due to better-than expected export formulation sales and margins. Revenues de-grew 5.6% YoY to Rs 262.6 crore (I-direct estimate: Rs 239 crore). Domestic formulations declined 2.2% to Rs 152.5 crore (I-direct estimate: Rs 155.9 crore). Export business declined 31.1% to Rs 68.5 crore (I-direct estimate: Rs 54.7 crore) EBITDA margins were at 9.4% against 15.5% in Q3FY18 (I-direct estimates of 7.2%) due to negative operational leverage. EBITDA declined 42.7% to Rs 11.8 crore (I-direct estimate: Rs 17.2 crore) Net profit was at Rs 5.3 crore against Rs 22.7 crore in Q3FY18 (I-direct net loss estimate: Rs 3.8 crore) due to lower operational performance.


Accordingly, we value the stock on an SOTP basis by valuing the domestic business at 2.5x FY20E EV/sales, export formulations at 0.5x FY20E and API business at 1.0x FY20E EV/sales. We arrive at a target price of Rs 195.

For all recommendations report, click here

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.

First Published on Feb 26, 2019 05:10 pm