Hold Merck; target of Rs 1020: Centrum

Centrum recommended hold rating on Merck with a target price of Rs 1020 in its research report dated March 01, 2017.

March 02, 2017 / 13:32 IST

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Centrum's research report on Merck

Merck’s pharma segment (75% of revenues) grew 9% YoY to Rs 1.89bn from Rs 1.73bn. Merck is a pioneer in the vitamin segment, with three major brands Neurobion, Polybion and Evion. Evion does not fall under the National List of Essential Medicines (NLEM) and is hence its price hasn’t been capped.

Outlook

We maintain Hold rating on Merck, with a TP of Rs 1,020 (earlier Rs 990) based on 14x December’18E EPS of Rs 72.7. Merck’s pharma segment (75% of revenues) reported 9% YoY growth in revenues, while its chemical segment (25% of revenues) posted a 4% decline, affecting overall sales growth.

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first published: Mar 2, 2017 01:32 pm

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