Comments
Karvy Stock Broking
Indoco Rem (Buy)
CMP: ₹303.25
Target: ₹354
Indoco Remedies has commenced shipments of two approvals in the sterile space which address a market size of $180 million. We lower our revenue estimates for FY15 by 25 per cent to ₹16.7 crore. We also reduce our revenues for FY16E due to two launches (three launches previously) and lower scale in revenues in FY17E. We downgrade our revenues by 42.3 per cent and 6 per cent to ₹84.7 crore and ₹273.5 crore respectively for FY16E and FY17E.
After a tepid performance in the December quarter, the company is again back on track with double digit growth. Indoco has devised a strategy so as to get better revenue/ growth in the North and East region. Focus on prescription, productivity, increasing price per unit, scientific promotion and focus on chronic therapies would drive the domestic formulations business for the next couple of years.
We upgrade our revenues for FY15E by 1 per cent to ₹880 crore while we downgrade our FY16E revenues by 4.1 per cent to ₹1,100 crore.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.