Geo political developments in Ukraine - Minimal impact on Indian Pharmaceuticals - Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP-Research, Pharma)

Geo political developments in Ukraine - Minimal impact on Indian Pharmaceuticals :

"In the latest in the geopolitical toughening of stances, it has been reported that Ukrainian President asked Russia to send troops across the border to protect civilians. More than thousand Russian troops have been pouring into the Crimean peninsula sparking outrage and threats of economic sanctions from the US and European Union. The Russian threat of a military strike on Ukraine's Crimean region is a minor irritant for the Indian pharmaceutical sector. Amongst the Indian companies, the company with the highest exposure to the Russia and CIS is Dr Reddy's Lab. In FY2013, about 20% of Dr Reddy's revenues (Rs. 1690cr) came from the Russia and Commonwealth of Independent States (CIS), with CIS countries accounting for sales of around Rs. 286cr( 2% of sales).The Russia and CIS has been one of the key growth driver for the company. The region posted a CAGR of 21.7% during the last 5 years. Thus, the geo-political scenario, if continues for long could have impact on its sales in the region. However, in near term, since the conflict is confined to the Ukraine region, the impact is likely to be low. Thus, as of now we, are keeping our estimates intact and our accumulate on the stock with a target price of Rs. 3008."

Source : Equity Bulls

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