Wockhardt - Strong performance continues – Maintain Buy - Emkay

- Q3FY13 Results above expectations – Revenue grew 19% YoY to Rs. 14.35bn, EBITDA grew by 45% YoY to Rs. 5.45bn and APAT up by 74% YoY to 4.4bn

- Revenue growth was led by 47% growth in US business, which was further led by 26% constant currency growth and rest due to rupee depreciation. India biz grew by 14%

- Gross margins improved 1000bps YoY and 80bps QoQ to 71% which led to 38% EBITDA Margins. This improvement was on back of sale of Nutrition business, which had GM of 48% and strong growth in US business

- Upgraded the earnings estimates for FY13/14 by 40%/22% Maintain Buy rating on the stock with target price of Rs. 2,200 i.e. 15XFY14 EPS of Rs. 146.

Source : Equity Bulls

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