Unichem Laboratories Ltd. share price target

ICICI Securities Ltd | Retail Equity Research In an important development that will have implications on the future of the company, the Unichem management has decided to offer its core domestic branded formulations business to Torrent Pharma. The deal is valued at | 3600 crore (~4.3x FY17 Unichem's domestic revenue). The binding agreement includes 3000 Unichem employees and its Sikkim plant. Domestic revenues contributed ~54% to Unichem's FY17 revenues and included key brands like Losar, Unienzyme, Ampoxin, Telsar and...

ICICI Securities Ltd | Retail Equity Research Revenues grew 13% YoY to | 344 crore (I-direct estimate: | 350 crore) on account of 18% growth in export sales to | 119 crore (I-direct estimate: | 125 crore). Domestic sales grew 7% YoY to | 187 crore (Idirect estimate: | 197 crore) EBITDA margins declined 30 bps YoY to 9.8% (I-direct estimate: 12.8%) mainly due to higher employee and other expenditure. EBITDA increased 9% YoY to | 34 crore (I-direct estimate: | 45 crore) Net profit increased 14% YoY to | 32 crore (I-direct estimate of | 34.2)....

ICICI Securities Ltd | Retail Equity Research Revenues grew 17.5% YoY to | 360 crore (I-direct estimate: | 361 crore) mainly on account of 31.5% growth in export sales to | 123 crore (I-direct estimate: | 115 crore). Domestic revenues grew 7.8% YoY to | 204 crore (I-direct estimate: | 217 crore) EBITDA margins improved 121 bps YoY to 12.3% (I-direct estimate: 12.5%) mainly due to lower other expenditure. EBITDA increased 30% YoY to | 44 crore in line with I-direct estimate of | 45 crore...

Net Revenues for the quarter grew by 16.4 % YoY to Rs 3599 mn and were higher than our expectation of Rs 3495 mn due to higher other operating income. EBDITAM for the quarter was up from 11 % to 12.3 % YoY (our expectation of 11.4 %). Profits for the quarter were higher by 26.1 % YoY to Rs 261 mn (despite tax rate of 30.6%) as against our expectation of Rs 229 mn. Revenue Details: Domestic formulations revenues grew at 6.3 % YoY to Rs 2036 mn, lower than our expectation of Rs 2040 mn.

Unichem Laboratories Ltd. (Unichem), incorporated in 1944 and HQ in Mumbai, is primarily engaged in manufacturing formulations and active pharmaceutical ingredients (APIs or bulk actives). Unichem specializes in therapeutic areas like gastroenterology, cardiology, diabetology, psychiatry, neurology, anti-bacterials, anti-infectives and pain management among others. Unichem is ranked 26th (Source: AWACS MAT Sept 2016) in the domestic formulations market and ranks among the top 18 companies in its representative markets. Domestic market accounts for ~56% of revenues while the acute:chronic:subchronic ratio is at 46:50:4. The company has created strong asset base over the years with decent capex by hurting its balance-sheet....

ICICI Securities Ltd | Retail Equity Research Revenues grew 20% YoY to | 368 crore (I-direct estimate: | 366 crore) on account of 20% YoY growth in domestic formulations to | 227 crore (I-direct estimate: | 228 crore) and 26% growth in export formulations to | 113 crore (I-direct estimate: | 111 crore) EBITDA margins declined 51 bps YoY to 10.8% (I-direct estimate: 14.0%) due to higher other expenditure and employee cost despite improvement in gross margins. EBITDA increased 15% YoY to | 40...

Net Revenues for the quarter grew by 18.6 % YoY to Rs 3648 mn and were higher than our expectation of Rs 3486 mn. EBDITAM for the quarter was down from 11.1 % to 10.8 % YoY and also lower than our expectation of 13.5 %. Margins were lower than our expectations due to increase in other expenses and staff cost by 31% and 24% respectively. Profits for the quarter were lower by 9.3 % YoY to Rs 205 mn as against our expectation of Rs 313 mn, this was mainly on account of higher depreciation cost (21.5 % yoy) and tax rate of 35.8%.

Established in 1944, Unichem Labs is one of the oldest pharmaceutical companies in India having large brands like Losar, Losar H and Ampoxin. However, a safe and middle of the road approach towards overall business resulted in loss of lucrative US opportunities in the past. In 2014, coinciding with regulatory / NLEM clampdowns in the Indian market, massive price cuts were taken in Losar & Trika. Hence, the stock underperformed over FY14-16 (BSE Health 65% vs. Unichem 17%).

has domestic leadership in niche therapy areas of cardiology, neurology, orthopaedics and anti infective. By combining strategic research and in-depth industry knowledge, Unichem aims to transform itself into a global pharmaceutical drug company with an increasing focus on cutting-edge research in...

Revenues grew 9.5% YoY to | 342.0 crore (I-direct estimate: | 341.8 crore) on account of 12.5% YoY growth in domestic sales to | 221.5 crore (I-direct estimate: | 204.0 crore) and 16.7% growth in export sales to | 97.1 crore (I-direct estimate: | 104.2 crore). De-growth in APIs growth (-25% YoY), however, pulled down the numbers a bit. EBITDA margins declined 80 bps YoY to 12.9% (I-direct estimate: 10.9%) mainly due to higher employee cost and provision for diminution in the Brazilian subsidiary • Net profit witnessed a YoY decline of 11.1% to | 25.8 crore (I-direct estimate: | 26.1 crore) mainly due to higher taxation. ICICI Securities Limited ascribe a target price of | 340, based on 16x (earlier 14x) FY18E EPS of | 21.1.

Trendlyne has 5 reports on UNICHEMLAB updated in the last year from 2 brokers with an average target of Rs 321.5. Brokers have a rating for UNICHEMLAB with 1 upgrade and 3 price upgrades in past 6 months.

ICICI Securities Ltd | Retail Equity Research Revenues grew 17.8% YoY to | 301.5 crore (I-direct estimate: | 311.1 crore) on account of 17.1% YoY growth in domestic sales to | 171.3...

Unichem has completed 6 years in US market. The company started launching few products in 2009. The year 2014-2015 (USD 24 mn) saw a near 100% growth on the back new launches.

Unichem's total revenues increased by 15.2% YoY to Rs 3.06 bn in Q3FY16 higher than our estimates of Rs 2.98 bn while on QoQ basis it increased marginally by 0.2%. Operating margins increased by 790bps YoY to 11.1% (lower than our estimate of 12.3%).

Tepid quarter; Expect better traction in 2HFY16E Unichem's 2QFY16 result is a dampener as it continues to overcome the growth challenges in export formulations (up 14.5% yoy). It missed our numbers by 7%/29%/39% for sales, margins and APAT, respectively. While the sustained growth in India formulations (up 13.2% yoy) is a relief, operating performance (at 10.7% - down 30 bps yoy and 190bps qoq) succumbed due to poor product mix. Traction in the US business (up 43% yoy in 1HFY16) partially offset the losses in the UK subsidiary. We assess that ramp up in the US will boost export growth, while...

Unichem's total revenues increased by 6.2% YoY to Rs 3.09 bn in Q1FY16 lower than our estimates of Rs 3.16 bn. Operating margins declined by 120bps to 13.8% (higher than our estimate of 11.7%). Better gross margins and lower other expenses contributed to better operating margins. Net Profit de-grew by 4.7% YoY to Rs 288 mn as against our estimates of Rs 244 mn.