Indoco Remedies Ltd. share price target

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)...

ICICI Securities Ltd | Retail Equity Research Revenues remained flat YoY at | 278 crore (I-direct estimate: | 296 crore). Miss vis--vis I-direct estimates was due to lower-thanexpected growth in domestic formulations, which grew 8% to | 156 crore (I-direct estimate: | 180 crore). Export formulations declined 8% to | 100 crore (I-direct estimate: | 94 crore) EBITDA margins improved 133 bps YoY to 15.5% (I-direct estimate of 14.8%) mainly on account of higher gross margins (67.5% in Q3FY18 vs. 64.7% in Q3FY17). EBITDA increased 9% YoY to | 43...

For 2QFY2018 Indoco Remedies sales came in at `280cr, in line with expectations, posting a yoy growth of 1.3%. The growth was impacted by lower exports, mainly on the back of US (` post a 69.5% yoy dip in sales). Indian Formulation sales posted 11.5% yoy growth. On operating front, the EBITDA margins came in at 12.9% (11.8% expected)...

ICICI Securities Ltd | Retail Equity Research Revenues remained flat YoY at | 285 crore (I-direct estimate: | 291 crore). Export formulations declined 20% YoY to | 74 crore (I-direct estimate: | 94 crore) while domestic formulations grew 12% to | 188 crore (I-direct estimate: | 177 crore) EBITDA margins declined 56 bps YoY to 14.4% (I-direct estimate of 14.2%) mainly on account of lower gross margins (64.8% in Q2FY18 vs. 65.5% in Q2FY17). EBITDA declined 2.4% YoY to | 41 crore (Idirect estimate: | 41 crore)...