Unichem Labs - Strong performance on low base – Maintain Hold - Emkay

Unichem's Q2FY13 Results – a) Revenues at Rs2.6bn (up 33% YoY) b) EBITDA at Rs529mn (up 74% YoY) and c) APAT at Rs365mn (up 91% YoY)

- Domestic business grew by 20% on back of low base, addition of MRs and strong focus on chronic therapies

- Going ahead –India business will grow above industry rate at 18% in FY13E & 16% in FY14E. Traction in CRAMS contract with US MNC will lead to 24% CAGR in export formulations

- Current valuations factor-in the future developments. Maintain Hold on the stock with a target of Rs192 (12xFY14E EPS of Rs16)

Source : Equity Bulls

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