Views on Indoco Remedies 3QFY2014 results - Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP - Research - Pharma, Angel Broking) on Indoco Remedies 3QFY2014 results:

"Indoco Remedies, posted numbers, in line on the sales front, while the net profit came in below expectations, inspite of the OPM coming above expectations. On the sales front, company posted net sales of Rs. 188cr V/s expectation of Rs. 187cr, registering a yoy growth of 25.4%. The sales growth was mainly on back of the exports which posted a yoy growth of 30.5%, while domestic sales, posted a growth of 22.7% yoy. The OPM, came in at 16.2% V/s expectation of 14.6%, an expansion of 539bps. The expansion in the OPM was driven by 382bps expansion in the Gross margins and robust sales of the company during the quarter. As a result, the net profit increased by 89.8% yoy to Rs. 14cr. However, the same was, lower than our expectations of Rs. 17cr, on back of lower other loss of Rs. 1cr V/s a gain of Rs. 3cr during the last corresponding period and higher taxation during the quarter. We remain neutral on the stock."

Indoco Remedies (CMP: Rs. 124/ TP:-/ Upside:)

Source : Equity Bulls

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