Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Remarks: The combination of Sun Pharma and Taro offers an excellent business model for Sun Pharma, as has been
reflected in the M9FY2012 performance (its revenue grew 31% YoY in M9FY2012).
Though Taro may not show a similar performance in the next quarter, but we expect a better performance
from Sun Pharma going forward mainly driven by the resumption of sales from the US based Cranbury facility,
which has been cleared by the USFDA recently. Sun Pharma seeks to acquire the remaining equity in Taro and,
if successful, that will not only help achieve better synergy but also boost earnings from the first year itself.
We expect 24% and 16% revenue and PAT CAGR respectively over FY2011-13. With a strong cash balance, Sun
Pharma is well positioned to capitalise on the growth opportunities. Its debt-free balance sheet insulates it
from the negative impact of volatile currency.
Due to provisions of Union Budget 2012-13, which provided for Alternate Minimum Tax (ALT) on partnershipbased
units availing various tax concessions, Sun Pharma’s earnings are likely to get reduced to the extent of
9% in FY2013.
At the current market price, Sun Pharma is trading at 24.2x and 24.0x FY2012 and FY2013 estimated EPS
respectively. We maintain our Buy recommendation on the stock with a price target of Rs631, which implies
26x FY2013E EPS.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Remarks: The combination of Sun Pharma and Taro offers an excellent business model for Sun Pharma, as has been
reflected in the M9FY2012 performance (its revenue grew 31% YoY in M9FY2012).
Though Taro may not show a similar performance in the next quarter, but we expect a better performance
from Sun Pharma going forward mainly driven by the resumption of sales from the US based Cranbury facility,
which has been cleared by the USFDA recently. Sun Pharma seeks to acquire the remaining equity in Taro and,
if successful, that will not only help achieve better synergy but also boost earnings from the first year itself.
We expect 24% and 16% revenue and PAT CAGR respectively over FY2011-13. With a strong cash balance, Sun
Pharma is well positioned to capitalise on the growth opportunities. Its debt-free balance sheet insulates it
from the negative impact of volatile currency.
Due to provisions of Union Budget 2012-13, which provided for Alternate Minimum Tax (ALT) on partnershipbased
units availing various tax concessions, Sun Pharma’s earnings are likely to get reduced to the extent of
9% in FY2013.
At the current market price, Sun Pharma is trading at 24.2x and 24.0x FY2012 and FY2013 estimated EPS
respectively. We maintain our Buy recommendation on the stock with a price target of Rs631, which implies
26x FY2013E EPS.
No comments:
Post a Comment