Views on Indoco Remedies Ltd 4QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP- Research Pharma, Angel Broking) on Indoco Remedies Ltd 4QFY2016 Results:

Indoco Remedies (CMP: INR 293 / TP: / Upside:)

"For 4QFY2016, Indoco Remedies posted results much below expectations. It posted sales of INR 255cr V/s INR 300cr expected a YoY growth of 20.5%. The growth was mainly driven by exports (INR 117.8cr), a YoY growth of 43.8%, while domestic sales (INR 136.3cr), posted a YoY growth of 5.6%. The domestic formulation sales (INR 130.8cr) a YoY growth of 6.4%. Exports sales was driven by the Formulation exports (INR 110.5cr), a YoY growth of 47.3%. On operating front, the gross margins came in at 67.7% V/s 67.6% during the last corresponding period, while EBDITA came in at 12.7% V/s 18.4% during the last corresponding period. The margins came under pressure on back of the R&D expenditure, which rose by 153.7% YoY. The reported net profit thus came in at INR 20cr V/s INR 18.8cr during the last corresponding period, a YoY growth of 6.7%. We remain NEUTRAL on the stock."

Shares of INDOCO REMEDIES LTD. was last trading in BSE at Rs.287.25 as compared to the previous close of Rs. 277.6. The total number of shares traded during the day was 4258 in over 306 trades.

The stock hit an intraday high of Rs. 292.05 and intraday low of 278.5. The net turnover during the day was Rs. 1219145.

Source : Equity Bulls

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