Views on Indoco Remedies Ltd 3QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on Indoco Remedies Ltd 3QFY2017 Results:

Indoco Remedies (CMP: INR 270 / TP: INR 240 / Upside: -11%)

"Indoco Remedies posted numbers lower than expectations. In sales, the company posted revenues of INR 272cr V/s INR 276cr expected V/s INR 255cr in 3QFY2016, growth of 6.9% YoY. The low growth was on back of the formulation business (INR 252.2cr) growth of 4.5% YoY, API (INR 18.2cr) growth of 32.8% YoY. The domestic formulation was at (INR 144.2cr), a YoY growth of 5.2%. On EBITDA front, the company posted an EBITDA of 12.4% V/s 14.5% expected and V/s 15.4% in 3QFY2016. The dip came in on back of the high R&D expenses, which came in at 5.1% of sales V/s 3.5% of sales in 3QFY2016. Consequently, PAT, came in at INR 17cr (lower than expectations) V/s INR 20.4cr in 3QFY2016, de-growth of 13.9% YoY. We maintain our REDUCE rating on the stock."

Shares of INDOCO REMEDIES LTD. was last trading in BSE at Rs.270.15 as compared to the previous close of Rs. 274.9. The total number of shares traded during the day was 2518 in over 159 trades.

The stock hit an intraday high of Rs. 274.9 and intraday low of 268.9. The net turnover during the day was Rs. 680972.

Source : Equity Bulls

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