| BROKER CALL: Brics PCG puts Buy on Elder |
| Atul Sathe / Mumbai April 28, 2006 |
| Brics 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 |
