Fundamental Analysis

INDOCO REMEDIES LTD.

Ticker : 532612
BUY : Rs 324.60
Target : Rs 360

Indoco Remedies Limited is a fully integrated, research-ori-ented pharma company with a presence in almost 55 coun-tries. On the consolidated quarterly front, the company recorded net sales of Rs 332.29 crore for Q3FY21, which is an increase of 14.84 per cent from its net sales of Rs 289.35 crore reported for Q3FY20. The operating profit jumped sub-stantially to Rs 35.59 crore in Q3FY21 from Rs 60.54 crore posted in Q3FY20, registering a gain of 70.1 per cent. The net profit was reported at Rs 25.36 crore in Q3FY21 from Rs 9.10 crore in Q3FY21, recording massive gains. The company reports that it has won major tenders in Germany including AOK for Allopurinol tablets, which are worth Rs 140 crore. The revenue expected to flow from this business is Rs 70 crore per annum. Also, the company is vertically integrated for Allopurinol API, the captive consumption of which will be equivalent to 100 metric tonnes per annum for supplies against these tenders. Hence, having optimistic growth prospects regarding the growth of the company, we recommend B U Y.