Management Interaction Takeaways
Wyeth
Buy
Target Price: Rs1,265
CMP: Rs873
Upside: 45%
We recently interacted with the management of Wyeth to get their feedback on the latest update on the company. The key highlights are:
Showing posts with label Wyeth. Show all posts
Showing posts with label Wyeth. Show all posts
09 January 2013
29 October 2012
Wyeth - Q2FY13 Result Update - Centrum
Q2FY13 Result Update/ Estimate Revision
Wyeth
Buy
Target Price: Rs1,265
CMP: Rs887
Upside: 42.6%
Sharp fall in margins
Wyeth’s results for Q2FY13 were disappointing. The company reported 5%YoY growth in revenues, 500bps reduction in EBIDTA margin and 11%YoY decline in net profit. Sales growth was affected by retailer schemes. Wyeth’s EBIDTA margin got affected by the change in product mix and weakening of the rupee which had a bearing on imported raw material cost. The company’s material cost increased by 630bps YoY. Wyeth is a debt-free cash rich company with Rs179 cash per share. We have a Buy rating for the scrip with a target price of Rs1,265 (based on 15x FY14E EPS).
24 May 2012
Wyeth - Q4FY12 Result update/Estimate change::Centrum
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Brands driven growth
Wyeth Q4FY12 results were better than our expectations. The company
reported 25%YoY sales growth against the industry’s 15%. The results of the
two quarters are not comparable as the previous quarter was 4m period
ending 31st March’11. Wyeth’s EBIDTA margin declined by 270bps YoY from
38.2% to 35.5% due to an increase in material cost and other expenses. The
company’s other income grew by 28%YoY from Rs60mn to Rs77mn. Wyeth’s
tax rate has come down from 32.6% to 30.5% of PBT. Net profit grew by
23%YoY. Wyeth has cash per share of Rs160. We have retained Buy rating for
the scrip with a target price of Rs1353 (based on15x FY14E EPS of Rs90.2).
Strong revenue growth: During the quarter, the pharma business (94% of
revenues) grew by 26%YoY from Rs1.19bn to Rs1.50bn. OTC business (6%
revenues) grew by 12% from Rs80mn to Rs89mn.
Margin under pressure: Wyeth reported 270bps drop in EBIDTA margin from
38.2% to 35.5% due to the increase in material cost and other expenses.
Wyeth’s material cost increased by 180bps from 32.6% to 34.4% of revenues
due to the increase in cost of imported raw materials, with the depreciation of
rupee. Other expenses grew by 240bps from 22.7% to 25.1% due to higher
marketing expenses. The PBIT margin of pharma business dropped by 40bps
YoY from 38.1% to 37.7%. PBIT margin of OTC declined by 3160bps from
19.2% to (-)12.4%
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Brands driven growth
Wyeth Q4FY12 results were better than our expectations. The company
reported 25%YoY sales growth against the industry’s 15%. The results of the
two quarters are not comparable as the previous quarter was 4m period
ending 31st March’11. Wyeth’s EBIDTA margin declined by 270bps YoY from
38.2% to 35.5% due to an increase in material cost and other expenses. The
company’s other income grew by 28%YoY from Rs60mn to Rs77mn. Wyeth’s
tax rate has come down from 32.6% to 30.5% of PBT. Net profit grew by
23%YoY. Wyeth has cash per share of Rs160. We have retained Buy rating for
the scrip with a target price of Rs1353 (based on15x FY14E EPS of Rs90.2).
Strong revenue growth: During the quarter, the pharma business (94% of
revenues) grew by 26%YoY from Rs1.19bn to Rs1.50bn. OTC business (6%
revenues) grew by 12% from Rs80mn to Rs89mn.
Margin under pressure: Wyeth reported 270bps drop in EBIDTA margin from
38.2% to 35.5% due to the increase in material cost and other expenses.
Wyeth’s material cost increased by 180bps from 32.6% to 34.4% of revenues
due to the increase in cost of imported raw materials, with the depreciation of
rupee. Other expenses grew by 240bps from 22.7% to 25.1% due to higher
marketing expenses. The PBIT margin of pharma business dropped by 40bps
YoY from 38.1% to 37.7%. PBIT margin of OTC declined by 3160bps from
19.2% to (-)12.4%
15 March 2012
Wyeth Buy Target Price: Rs1,267; Upside: 47.7%::Centrum
Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Wyeth
Buy
Target Price: Rs1,267
CMP: Rs858
Upside: 47.7%
Strong product portfolio
Wyeth is a leading MNC pharma company with strong product portfolio in the domestic market. Its six major brands are growing faster than the market and are likely to drive future growth. Wyeth has plans to launch vaccines and OTC products of its parent company. The company is a leading player in the oral contraceptive (OC) segment and has 27% MS. We initiate coverage on the company with a Buy rating and target price of Rs1,267 based on 15x FY14 earnings.
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