Views on Indoco Remedies Ltd 1QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking) on Indoco Remedies Ltd 1QFY2017 Results:

"For 1QFY2017, the company posted sales of INR 253cr V/s INR 220cr expected V/s INR 216cr in 1QFY2016, a YoY growth of 17.0%. The formulations (INR 234.5cr), a YoY growth of 14.8% YoY, while API (INR 175.9cr), a YoY growth of 40.8%. The formulations growth was driven by domestic formulation (INR 142.1cr), a YoY growth of 12.7%, while export domestic (INR 92.3cr), a YoY growth of 18.4%. On the operating profit front, the OPM came in at 14.7% V/s 16.3% in 1QFY2016, V/s 17.0% expected. Dip in the OPM was mainlyonback of 85.0% YoY rise in the R&D expenses, which were around 4.7% V/s 3.0% in 1QFY2016. This lead company to post an Adj. net profit of INR 19.7cr V/s INR 20.3cr in 1QFY2016, a YoY de-growth of 2.7%. We maintain our NEUTRAL rating on the stock."

Shares of INDOCO REMEDIES LTD. was last trading in BSE at Rs.308.45 as compared to the previous close of Rs. 320.3. The total number of shares traded during the day was 81821 in over 3247 trades.

The stock hit an intraday high of Rs. 338.95 and intraday low of 297.85. The net turnover during the day was Rs. 25732493.

Source : Equity Bulls

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