Fwd: Unichem Labs Q2FY12 Result Update; In Restructuring Phase - Maintain Hold; Target: Rs 148

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Deepak Vaishnav

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Oct 29, 2011, 3:20:49 AM10/29/11
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Unichem Labs

In Restructuring Phase - Maintain Hold

 

HOLD

 

CMP: Rs 132                                       Target Price: Rs 148

n     Unichem’s Q2FY12 results were in-line with a) Revenues at Rs2bn (down 2% YoY) b) EBITDA at Rs305mn (down 39% YoY) and c) APAT at Rs191mn (down 45% YoY)

n     Domestic growth was subdued at -8% as expected due to ongoing rationalization of inventory at the distributor level, negatively impacting company-level sales

n     EBITDA margins at 15.3% (down 922bps) was led by higher raw material cost (up 386bps), increase in sales & marketing cost and higher employee cost due to increase in sales force

n     We continue to maintain Hold rating on the stock with a target price of Rs148 (11x FY13E EPS of Rs13.4)

 

Regards,

Deepak Malik

Senior Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : deepak...@emkayglobal.com  

Board No. : +91-22-66121212 | Extn. : 257 | DID : 66121257 | Mob : +91 9769811227 |

 


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Unichem Labs Q2FY12 Result Update.pdf
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