Pfizer - Pressure on growth continues - Maintain Hold - Emkay

Reco: HOLD
CMP: Rs 1140
Target Price: Rs 1116

- Pfizer Q2FY13 Results, in-line with expectations - a) Revenue down 9% YoY to Rs2.5bn, b) EBIDTA up 19% YoY to Rs616mn and c) APAT up 16% YoY to Rs546mn

- Performance was affected due to subdued growth in company's top brands - Corex, Becosules, Gelusil & Dolonex. EBITDA margins expanded 512bps YoY to 23% on account of lower promotional and staff expenses

- Going ahead, we expect top brands to continue to under perform which will put pressure on growth & margins

- On back of lower growth in top brands and slower ramp-up in new launches, maintain Hold with a target price of Rs1116 (15x FY14E EPS of Rs74)

Source : Equity Bulls

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