Hold Indoco Remedies; target of Rs 71: Firstcall Research

Firstcall's research report on Indoco Remedies

"Indoco Remedies achieved a turnover of Rs. 1539.80 million for the 1st quarter of the current year 2013-14 as against Rs. 1560.80 millions in the corresponding quarter of the previous year. The company has reported an EBITDA of Rs. 245.20 millions and a net profit of Rs. 91.80 million and 103.50 million reported respectively in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 1.00 for the 1st quarter as against an EPS of Rs. 5.62 in the corresponding quarter of the previous year. The change in the EPS is due to the stock split (Face value) of the company from Rs. 10.00 to Rs.2.00." Outlook and Conclusion: "At the current market price of Rs.65.00, the stock P/E ratio is at 13.19 x FY14E and 12.53 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.4.93 and Rs.5.19 respectively. Net Sales and Operating Profit of the company are expected to grow at a CAGR of 9 percent and 9 percent over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 5.76 x for FY14E and 5.31 x for FY15E. Price to Book Value of the stock is expected to be at 1.30 x and 1.18 x respectively for FY14E and FY15E. We recommend 'HOLD' in this particular scrip with a target price of Rs 71 for Medium to Long term investment," 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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