Healthy partnerships

POUND WISE

CY08E

CY09E

Net sales

6,693

8,031

9,637 EBIDTA

999

1,365

1,927 Net profit7757231,137 EPS (Rs)191830 P/E (x)

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2615 E: Analyst estimates  The company has a target of reaching $5 billion mark by 2012 from the current $1.6 billion (2007) and will have to clock 25 per cent growth rate (current growth rate about 20 per cent) to reach there.  With the generic business facing pricing pressures due to a competitive environment, product launches in the six-month exclusive period remain its key to rapid growth. At Rs 469, the stock discounts its FY09 earnings of Rs 30 by 15 times and should deliver healthy returns over a two year period.