BROKER CALL: Brics PCG puts Buy on ElderAtul Sathe / Mumbai April 28, 2006Brics PCG recommends a "Buy" on Elder Pharma. The report states that the company's results for Q4 FY06 have far surpassed expectations on the earnings front, due to better-than-expected margin expansion.It has revised the sales and margin estimates for FY07 and FY08 and has upgraded the target price from Rs 403 to Rs 440.The company's topline increased 47% in Q4 FY06 as compared to Q4 FY05 and rose 24% in FY06 over the previous year, backed by strong growth in the formulation and consumer division businesses.The formulations segment grew in excess of 40% to Rs 310 crore led by strong growth in top brands Shelcal, Eldervit and Chymoral.The report expects the topline to sustain its growth momentum supported by strong performance of the formulations business, a ramp up of the profitable API business and a heightened focus on exports as the company forays into newer markets.Further, the increasing relocation of the company
