Indoco Remedies Ltd. share price target

India formulations growth core to overall growth Domestic formulations (~63% of FY20 revenues) grew at 6.5% CAGR in FY16-20. The subdued growth can be attributed to high concentration of acute therapies and one of the lowest MR productivity. With a market share of ~0.7% and overall rank of 29, the company is still a marginal player with some top brands in smaller categories like stomatologicals. However, with a positive outcome of restructuring exercise and likely improvement in MR productivity besides therapy calibration, we expect Indian formulations to...

We maintain HOLD on INDR and wait for more visibility post Q1FY21E considering that this quarter is usually weak due to seasonality effect plus COVID scenario could possibly lead to a double blow. FY20 was a recovery and CAPEX phase for INDR given 1) Remediation work for its Goa facility 2) Expansion of API segment with Patalganga Unit 3) Restructuring of Domestic...

India formulations growth core to overall growth Domestic formulations (~63% of FY19 revenues) grew at 4.4% CAGR in FY16-19. The subdued growth can be attributed to high concentration of acute therapies and one of the lowest MR productivity. With a market share of ~0.7% and overall rank of 29, the company is still a marginal player with some top brands in smaller categories like stomatologicals. However, with a positive outcome of restructuring exercise and likely improvement in MR...

Indoco Remedies net revenues increased by 24 percent YoY to Rs 2926 mn (higherthan our estimate of Rs 2814 mn) in Q2FY20 due to robust revenue traction inDomestic, International and API business.

overall increase in exports by 40% YoY in Q2FY20 as UK sales gradually ramping up post re-instating GMP compliance by UK MHRA. The plant related manufacturing issues (mainly delay in re-approval of Goa Unit-2 by UK MHRA) are guided to have resolution in near to medium term. Exports in nonregulated markets increased by 36% with the benefits of lower base YoY. While management achieved US FDA resolutions in Goa Unit-2 and 3, as well as...

Domestic formulations (~57% of FY18 revenues) have grown at 9% CAGR in FY13-18. The subdued growth can be attributed to high concentration of acute therapies that account for ~80% of overall formulations. With a market share of ~0.7% and overall rank of 31, the company is still a marginal player with some top brands in smaller categories like stomatologicals. However, with a positive outcome of restructuring exercise and improvement in MR productivity, we expect FY20E Indian formulations to deliver ~9% growth in FY18-20E to | 706 crore....

Net sales, adj. EBITDA and PAT all miss estimates by big margin. India Change in Estimates | Target | Reco normalized base (as it grew only 8% YoY in Q3FY18). The sales in regulated...

Q2FY19 numbers were substantially lower than I-direct estimates on all fronts. Revenues de-grew 17.3% YoY to | 235.6 crore (I-direct estimate: | 262.9 crore). Domestic formulations declined 15.5% to | 159 crore (I-direct estimate: | 169.4 crore) led by the high base of restocking post GST implementation. Export business declined 28.9% to | 52.8 crore (I-direct estimate: | 70.2 crore) EBITDA margins were at 5% against 14.5% in Q2FY18 (I-direct estimate of 14.5%) due to negative operational leverage. EBITDA...

Revenues grew 4.1% YoY to | 217.5 crore (I-direct estimate: | 277.1 crore). The 50.1% YoY growth in domestic formulations to | 149.7 crore (I-direct estimate: | 159.5 crore), led by lower base of GST impact in Q1FY18, was largely offset by 51.8% YoY decline in export formulations to | 41.4 crore (I-direct estimate: | 88.3 crore) EBITDA margins rose 470 bps YoY to 5.3% but lower than I-direct estimate of 15.8% mainly due to poor export formulations revenues Net loss fell 44.7% YoY to | 12.0 crore (I-direct net profit estimate:...

ICICI Securities Ltd | Retail Equity Research Revenues declined 2.6% YoY to | 270 crore (I-direct estimate: | 275 crore). Export formulations declined 17% YoY to | 88 crore (I-direct estimate: | 101 crore) while domestic formulations grew 16.1% to | 151 crore (I-direct estimate: | 154 crore) EBITDA margins increased 718 bps YoY to 18.9% (I-direct estimate of 14.0%) due to lower operational expenditure across line items. EBITDA rose 56.8% YoY to | 51 crore (I-direct estimate: | 39 crore)...