Indoco Remedies - Resolution Of Facilities A Key Monitorable: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Indoco Remedies Ltd.’s revenue is expected to clock 12.7% compound annual growth rate over FY23-FY25E mainly on the back of growth in domestic market export formulations business. We are building in 16.7% constant currency CAGR over FY23-FY25E for the U.S. market despite official action indicated on Goa Plant II and Plant III. The domestic formulations business is expected to clock 10% CAGR over FY23-FY25E to Rs 9.6 billion mainly on the back of increased focus on new launches and the chronic segment. Ebitda margin is expected to be at ~16-18% in FY24. Net profit is expected to clock 24.8% CAGR over FY23-FY25E, mainly driven by an improvement in operational performance and higher other income. The company is currently trading at 19.2 times/13.2 times price-to-earning on FY24E/FY25E EPS and 10.3 times/7.8 times enterprise value/Ebitda on FY24E/FY25E. We estimate free cash flow generation of ~Rs 1.5 billion over FY24E-FY25E with minimal capex requirements. Return on equity/return on capital employed will remain decent at 17.5%/14.3% by FY25E. We like Indoco Remedies due to high contribution from the domestic market and robust complex products portfolio for the U.S. market. However, we are concerned about the company's continued disappointing performance in the domestic market. Besides, it is highly dependent on certain niche launches for growth in the U.S. market. Hence, we maintain 'Accumulate' rating with a target price of Rs 352, valuing it at 14 times June-25E earnings per share..Click on the attachment to read the full report:.Eris Lifesciences - Strong Runway For Growth: Nirmal Bang.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Indoco Remedies - Resolution Of Facilities A Key Monitorable: Nirmal Bang

Goa Plant II and III are under official action indicated and hence supplies moderated in Q1 FY24.

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